Newz Desk, Durgapur: India’s credit information companies have urged the Centre to allow them access to a wider range of financial data to more accurately evaluate the repayment capacity of individuals and businesses seeking loans.
At present, banks and financial institutions rely on four licensed Credit Information Companies (CICs) — including TransUnion CIBIL — to assess the creditworthiness of borrowers. These agencies analyse loan histories, PAN-linked records, credit card usage, repayment behaviour, mortgage details and other credit-related information before generating credit scores.
To Curb Loan Defaults, CIBIL Seeks Government Approval for Expanded Data Pool
However, CICs say that depending solely on past loan information is no longer sufficient to assess financial risk.
Speaking in Kolkata, V. Anantharaman, Chairman of TransUnion CIBIL, said that modern credit-risk evaluation requires access to additional datasets, including GST payment records, UPI transaction history, and data from Account Aggregators.
“These parameters offer a fuller picture of an individual or company’s cash flow and financial discipline,” he said. “Without these inputs, risk assessment remains incomplete. Many countries have already adopted broader data models for credit evaluation.”
Currently, CICs are legally permitted to analyse only loan-related information. They do not have access to other financial records that could help predict repayment behaviour more accurately.
Anantharaman revealed that CIBIL and other credit bureaus have formally approached the Union government seeking authorisation to access these datasets. Their recommendations were submitted after the Finance Ministry invited industry suggestions ahead of the upcoming Union Budget.
Credit bureaus argue that access to more comprehensive financial data would not only enhance credit-risk analysis but also help lenders extend loans more safely and reduce defaults.
The proposal is now under consideration by the Centre.
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