Credit rating agency Crisil plans to set up a credit information company(CIC) in association with Equifax Inc of the US and Tata Capital Ltd. The CIC will provide credit history and checks on retail borrowers. Equifax Inc is among the leading global credit information solutions companies in the world. Tata Capital is a non-banking finance company and a wholly-owned subsidiary of Tata Sons Ltd. Crisil has applied for permission from Reserve Bank of India (RBI) to start the CIC.
Ms Roopa Kudwa, Crisil's managing director and CEO said the business plans, investment pattern, and stake holding of the partners will be finalized on the basis of guidelines released by the RBI. The government has approved foreign direct investment (FDI) up to 49%, in credit information companies.
Crisil, which is already a credit rating company, provides ratings for large corporates, small and medium enterprises. Entering into the credit information business will help them to expand their footprint into the retail credit segment.
Today, only Credit Information Bureau of India (CIBIL) is a player in the retail credit segment. The retail finance market is estimated to grow by 20 per cent annually over the next five years, giving a perfect platform for Crisil to start the CIC.
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