Commercial CIBIL vs Consumer CIBIL Score - What’s the Difference?

What is CIBIL?

CIBIL stands for Credit Information Bureau India Limited. It is a credit information company and is also the first one that is licensed by the Reserve Bank of India (RBI). CIBIL is affiliated with TransUnion, which is also a credit information bureau, but it is American-based. Being a credit information company, the role of CIBIL is to prepare credit scores based on the data related to credit history gathered from lenders. These scores are created for both individuals and business entities. Both consumer CIBIL and commercial CIBIL scores are the main deciding factors for lenders to determine whether to approve your loan application or not. However, some lenders may also rely on other credit scores such as Equifax, Highmark and Experian.

Table of Content

• What is a Consumer CIBIL?
• What is a Commercial CIBIL?
• Differences Between Commercial CIBIL and Consumer CIBIL Score
• Characteristics of Consumer CIBIL and Commercial CIBIL
• Advantages of a Good CIBIL Score & Rank

CIBIL is also known as India's most trusted credit scoring model. For a free CIBIL score check, you can visit the official website of CIBIL. If you have a higher CIBIL score, your lender may charge a lower rate of interest on your loan, whereas a lower CIBIL score means a higher interest rate, so you are not eligible for loans at all.

What is a Consumer CIBIL?

Consumer CIBIL is the evaluation of the credit history of an individual, which is then presented as a credit information report. According to the report, a score is then generated ranging from 300 to 900. The report also contains the details of the credit exposure, payment history, defaults, credit duration, etc., of an individual. The main objective of creating a consumer CIBIL score is to assist lenders in evaluating the creditworthiness of individual borrowers. For this reason, it doesn’t contain information related to savings, investments and other financial asset details.

What is a Commercial CIBIL?

Consumer CIBIL, on the other hand, is the evaluation of the credit history of business entities. A commercial credit report reflects the credit history of a business. The report shows how payments were made, unsettled debts, if any, and financial obligations. Business entities rely on credit instruments for various reasons, such as expansion, clearing debts, etc. Unlike consumer CIBIL, commercial CIBIL report is presented as a rank which ranges between 1 – 10. It is the key component that is required during the loan approval process. Here, 1 is the highest rank, which indicates to the lenders clearly that the business is creditworthy. 

Differences Between Commercial CIBIL and Consumer CIBIL Score

Suggested Read: Top 5 Factors That Determine Your CIBIL Score

Characteristics of Consumer CIBIL and Commercial CIBIL

A consumer's CIBIL credit report consists of the following information:

• CIBIL score and credit summary 
• Personal information 
• Contact information 
• Employment information
• Account information

A commercial CIBIL report consists of the following:

• Company Background
• Industrial Sector
• Credit-to-Debt Ratio
• Financial Information 
• Credit History

Advantages of a Good CIBIL Score & Rank

• Quick Loan Approvals – If you have a good credit score or rank, your lender will approve your loan application without any further delay. Some lenders might also offer pre-approved loans.
• Lower Processing Fees – With a good credit score or rank, you will pay lower processing fees.
• Competitive Interest Rates – Lenders often charge lower interest rates to those who have a good credit history.
• Advantage in Negotiations – This is the prerogative you get when you have a good credit score or a rank. Companies and individuals can negotiate better deals with their lenders.

Whether you have a good credit score or a poor one, at Muthoot Finance, we have you covered. You can also visit our website to follow the tips on how to increase your CIBIL score.