Cibil ties up with telcos, insurance cos
The aim is to reduce the risk profile for companies by doing business with more financially secure customers, thereby, reducing chances of payment defaults and improving profitability. “Telecom firms may deny a phone connection to customers who have bad credit history. We are already working with Vodafone, Idea and Reliance and are in talks with Airtel to extend our tie-up. Unlike the data provided to banks, here we provide a less detailed snapshot of the credit score,” Cibil MD Arun Thukral said.
This tie-up will be a two-way process — telecom companies can use the data to accordingly set credit limits of post-paid customers for mobile, landline and broadband internet connections, while banks would get data on mobile bill payments, which would be used to assess credit-worthiness of home and auto loan applicants.
Thukral said awareness about credit information from consumers, companies and lenders have sharply risen in the past 3-4 years. “The weightage given to credit scores have increased among lenders as they try to become more risk averse, while consumers are more
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