TransUnion CIBIL is a credit agency that is authorised by the Reserve Bank of India to maintain credit information of individuals. Hence, TransUnion CIBIL has the responsibility of monitoring every credit card user’s loan history, as well as any other type of borrower’s credit track record.
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What is a CIBIL Score?
The role of TransUnion CIBIL, simply referred to as ‘CIBIL’ in India, is to determine an individual’s creditworthiness through their financial history. The agency generates a three-digit credit score, known as a CIBIL score, to evaluate the credit health of any individual seeking a loan, or any financial product related to borrowing funds, like a credit card. The score is typically a three-digit value in a range from 300-900. The nearer to 900 it is, the more indicative it is of strong financial health. A good CIBIL score, and one that is accepted by most institutions, is a score of 700-750. The lower your score is, the lesser are your chances of getting approved for a loan or a credit card.
Women In the Credit Landscape
A recent study by TransUnion CIBIL reported that the amount of women in India who regularly check CIBIL score activity has risen by a startling 62%. Furthermore, the study showed that women had an average CIBIL score of 734, more than the men’s average of 726. It’s no wonder then that women discover themselves at the very forefront of most social and professional positions currently. With liberalisation, today, most are leaders in large corporations and owners of successful businesses. When it comes down to the Indian economic and financial ecosystem, women make headlines for all the right reasons. In a largely patriarchal Indian society, the rise of women has been slow, but steady. Presently, Indian society has come to terms with the fact that women play a pivotal role in the enhancement of India’s economy.
Women, as a matter of fact, are more adept at handling financial issues than men. Being better at managerial skills, whether in their roles as housewives or in the corporate world, they run any business at hand with logic and reason. Often juggling multiple tasks with ease and practicality, they are regarded, nowadays, as akin to divine entities. Nonetheless, the financial empowerment of women in India has long been riddled with obstacles. Perpetually enmeshed in domestic chores and duties, lacking exposure to the advancement of the world, a huge percentage of such women were devoid of a bank account just a few years ago. The situation has improved by leaps and bounds today.
The Role of Banks and NBFCs
The vital drivers behind the transformation of the role of women financially are the changing socio-economic conditions in India. Nonetheless, the changing roles of banks/financial institutions have paved paths to the attainment of financial independence of women. As more and more women are getting financially clever, an increasing number of lenders are creating loans /credit card facilities specifically aimed to match female requirements. These are incentives for women to go ahead and borrow funds confidently. Technology is playing its part too, and women are becoming more educated in this sphere. Women can frequently check CIBIL score online and manage their finances with proper planning.
The Role of the Indian Government
Appropriately giving due diligence to the new credit -savvy woman consumer, the government has formulated many initiatives for the enhancement of loan access. Additional perks come in the form of low interest rates. Furthermore, several government schemes, like the Mudra Yojana Scheme, for encouraging women entrepreneurship have also been churned out. With free access to instruments of credit and impressive credit profiles, there is no goal too far for the reach of Indian women.
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