Difference Between Commercial CIBIL And Consumer CIBIL Score

Credit scores play an instrumental role in financial decisions, as they help lenders evaluate an individual's or a business's creditworthiness. In India, there are two primary CIBIL bureaus, commercial CIBIL and consumer CIBIL, catering to different segments of borrowers. Understanding the distinction between these two types of CIBIL bureaus is essential for businesses and individuals alike. In this blog, we will explore the definitions, purposes, factors influencing scores, and differences between Commercial CIBIL and Consumer CIBIL.

What is CIBIL?

CIBIL, or Credit Information Bureau (India) Limited, is India’s first and one of the most prominent credit information companies. It collects and maintains credit records of individuals and commercial entities, which are used to generate credit reports and scores. These reports help financial institutions assess the creditworthiness of borrowers before approving loans or credit facilities. CIBIL plays a vital role in promoting transparency and responsible lending in the Indian financial system.

What Is Commercial CIBIL?

Commercial CIBIL is a credit bureau that focuses on assessing the creditworthiness and financial health of businesses, institutions, and other commercial entities. It provides credit reports and scores to lenders, enabling them to make informed decisions when granting loans or extending credit to commercial entities. The purpose of commercial CIBIL is to evaluate the credit risk associated with commercial borrowers and facilitate lending institutions in managing their business lending portfolios effectively.

What Is Consumer CIBIL?

Consumer CIBIL, also known as TransUnion CIBIL Consumer Services Limited, is the arm of CIBIL that assesses the creditworthiness of individual consumers. It gathers and analyzes data from various financial institutions, such as banks, credit card companies, and NBFCs, to create credit reports and credit scores for individual borrowers. Consumer CIBIL plays a crucial role in determining loan eligibility, interest rates, and credit limits for individuals.

Differences Between Commercial CIBIL & Consumer CIBIL

Here is the detailed overview of the differences between commercial CIBIL and consumer CIBIL expressed in tabular form:

Also Read:  Everything You Need to Know About CIBIL Score

Features of Commercial CIBIL Report

A commercial CIBIL report provides an overview of the financial health and creditworthiness of an organisation. Here are some details present in a commercial CIBIL report:

• Provides access to business’ credit history
• Provides access to financial history of borrower and eliminates risk
• Provides insights about other borrowing from different lending institutions or banks
• Instant disbursal of credit

Features of Consumer CIBIL Report

The key features of consumer CIBIL report are mentioned below:

• Provides an overview about borrower’s credit health, worthiness and utilisation
• Provides identification and contact information
• Includes borrower’s job profile and financials by previous lenders if any
• Insights about credit services availed and payment history

How to Check Commercial CIBIL Score?

Below mentioned are the steps for checking commercial CIBIL score. The steps include:

Step 1: Visit the official CIBIL website and fill out the application form with all necessary details

Step 2: Enter the login details of your commercial CIBIL and then select a specific mode of payment for paying the applicable fee.

Step 3: Upon successful payment, you will receive your transaction ID and registration number at your registered email address.

Step 4: To receive your commercial CIBIL report, upload your KYC documents.

How to Check Consumer CIBIL Score?

Here are a detailed step by step guide for checking consumer CIBIL score. The steps are as follows:

Step 1: Visit the official CIBIL website and then click on ‘ Get your CIBIL score’.

Step 2: Enter all the necessary details including your name, phone number, email address, date of birth, PIN code etc. Also, attach a valid ID proof.

Step 3: Click on ‘Accept and Continue’.

Step 4: Visit the dashboard again to check your credit score. Click on CIBIL consumer login.

Step 5: To view your consumer CIBIL score, enter all your necessary login details.

Also Read:  6 Factors That Will Not Affect Your CIBIL Score

Importance of Consumer CIBIL Report and Commercial CIBIL Report

Understanding the significance of both consumer and commercial CIBIL reports is essential for making informed financial decisions. Below are the key points highlighting their importance:

Consumer CIBIL Report
•    Helps assess an individual’s creditworthiness.
•    Used by lenders to evaluate Personal Loan, credit cards, and mortgage applications.
•    A good consumer CIBIL score improves the chances of loan approval and at favourable interest rates.
•    Enables individuals to track repayment behaviour and manage personal finances effectively.
•    Supports lenders in making informed decisions about individual borrowers.

Commercial CIBIL Report
•    Evaluates the financial health and creditworthiness of businesses and institutions.
•    Used by banks and NBFCs to assess business loan applications and credit facilities.
•    A strong commercial CIBIL score enhances business credibility and access to funding.
•    Help businesses monitor credit exposure and maintain financial discipline.
•    Assists financial institutions in evaluating commercial credit risk accurately.

How to Maintain a Good CIBIL Score

Maintaining a good CIBIL score requires consistent financial discipline. Timely repayment of EMIs and credit card bills is one of the most crucial factors. Avoiding defaults, maintaining a low credit utilization ratio, and having a balanced credit mix of secured and unsecured loans also contribute positively. 
For businesses, ensuring financial transparency, avoiding over-leveraging, and keeping a clean repayment record across all credit lines is key to a healthy commercial CIBIL score. Individuals should also avoid multiple loan applications in a short span, as frequent credit inquiries can negatively impact the consumer CIBIL score. Lastly, regularly checking your credit report for errors and rectifying them promptly can also help maintain or improve your score over time. 

To Conclude

Understanding the difference between commercial CIBIL and consumer CIBIL is crucial for both businesses and individuals. While commercial CIBIL assists businesses in managing their credit risk and securing financial assistance, consumer CIBIL plays a vital role in individual credit assessment.

To access your commercial CIBIL or consumer CIBIL report, you can visit the official CIBIL website and follow the designated process. Lenders often consider these credit reports while evaluating loan applications and determining interest rates.  Check your Free CIBIL Score with Poonawalla Fincorp.

Frequently Asked Questions

• What is a good commercial CIBIL score?

A good commercial CIBIL score typically ranges between 750 and 900. However, the specific score requirements may vary based on the lender's criteria and the nature of the business.

• What are commercial CIBIL charges?

The charges for accessing commercial CIBIL reports and scores may vary depending on the services availed and the volume of information required. It is recommended to visit the official commercial CIBIL website or contact their customer support for the most accurate and up-to-date information regarding charges.

• What is a good CIBIL score?

A CIBIL score of 750 and above is generally considered safe and reflects a healthy credit profile.

• What is the fee for checking commercial CIBIL score?

The fee for checking commercial CIBIL score is Rs. 3,000.

• How can I increase my commercial CIBIL score?

To increase your commercial CIBIL score, it is mandatory to repay your dues on time, avoid any unnecessary credit products and stay away from any disputes.

• What is the importance of commercial credit?

Commercial credit evaluates the creditworthiness of the business owners at the time of applying loan for their business.

• Who can access commercial credit Reports?

Any business entity has the liberty of accessing commercial credit reports online from the official website.