Credit information agency Equifax has decided to introduce a microfinance credit bureau in the country.

Equifax Credit Information Services Private Ltd (ECIS) is the outcome of a joint venture between Equifax and six Indian financial institutions - Bank of Baroda, Bank of India, Kotak Mahindra Prime Ltd, ReligareFinvest, Sundaram Finance Ltd and Union Bank of India.

The new microfinance credit bureau would be second in the category only to Microfinance Institutions Network (MFIN) which has been set up by the microfinance sector.

The credit bureau will help in reducing defaults as well as excessive indebtness. Also, MFIs will get a chance to set their credit history.

Mr Samir Bhatia, MD and CEO, ECIS, said, "With the Equifax Microfinance credit bureau in place, consumers who may have otherwise been unable to obtain assistance can now establish their credit history and obtain funding."

Mr Alok Prasad, CEO, MFIN, said, "Dedicated credit bureaus for the sector (MFI) will bring much-needed transparency at the client level and will help curb multiple lending."