Borrowers have been facing trouble in getting loans from banks owing to their credit rating as per Credit Information Bureau of India (CIBIL). It has been found that a borrower has fallen prey to harrassment without even having defaulted but due to some tiff with the concerned bank. CIBIL has undoubtedly acted effectively in its role of risk management

To solve and ease the issue, three more credit rating agencies are being set up in India namely, Experian Credit Information Company of India, Equifax Credit Information Services and Highmark Credit Rating. With their entry into the market, it is expected that the loan disbursal mechanism should gain pace.

According to financial experts, the incorporation of more agencies will result in faster dispute resolution, protection against identity theft, easy availability of credit reports and more individual-centric services from the new players.

Experian Credit Information Company of India has decided to give Credit Information Report (CIR) to individuals at Rs 138 only while CIBIL grants it at Rs 142. The other processes would remain same as that followed by CIBIL.

"Many banks had stopped lending or issuing credit cards if the customer's name did not reflect in CIR. These included customers that banked with NBFCs and co-operative banks, who were not covered," says Samir Bhatia, managing director and CEO, Equifax Credit Information Services.

The new agencies would therefore widen their data reach to NBFCs and cooperative banks too. The result would be more customers getting laons and credit cards and at a faster pace than before.