Credit Ratings in India

Credit ratings are new to India, however currently they don't provide any ratings but provide credit history of the customers to the lenders.

The credit information report (CIR) of yours contains details of your credit history and track record in taking and repaying loans from banks and finance companies. A loan applicant with a good credit record will find access to loans easier, faster and on favourable terms. 

The Credit Information Bureau of India Ltd (Cibil) consolidates the information on individual borrowers' credit history, sourced from different member credit institutions such as banks, credit card companies and NBFCs, into a single report called the CIR. This is then made available to its members (banks, finance companies) to facilitate their lending decisions.

You can access your own CIR for a fee. You can also check and correct errors in the report and to initiate action to improve your credit record. It is a good idea to keep your CIR updated and correct, so it is easier and faster for you to apply and get loans at competitive rates.

1) Fill up a CIR request form. It can be downloaded from www.cibil.com/accesscredit.htm

2) Also submit self-attested copies of address proof (bank statement, utility bill) and identify proof (PAN card, passport or voter's ID.)

3) Make demand draft Rs 142 in favour of 'Credit Information Bureau (India) Ltd', payable at Mumbai.

4) Send documents and draft to Cibil at:

Hoechst House, 6th Floor,

193 Backbay Reclamation,

Nariman Point, Mumbai 400 021

Points to note

Restricted Access: Your CIR is accessible only to you and to members of Cibil who may want to cross check the credentials of a prospective borrower. A third person cannot see your CIR.

Corrections: If you find errors in your CIR, you have to approach your lender. Cibil will alter the CIR only when members report changes.

Rating: CIR only provides factual information on your repayment record. It does not classify, rank or rate you based on your credit history.

From 2008, this report is widely used by banks & lenders. If you are planning to obtain any kind of personal loan, credit card or housing loan, ensure that credit history is verified before you apply from CIBIL, so that you avoid any rejections from the lenders.

Mistakes happens...but never repeat them!

This is a story about a famous research scientist who had made several very important medical breakthroughs. He was being interviewed by a newspaper reporter who asked him why he thought he was able to be so
much more creative than the average person. What set him so far apart from others ?

He responded that, in his opinion, it all came from an experience with his mother that occurred when he was about two years old. He had been trying to remove a bottle of milk from the refrigerator when he lost his grip on the slippery bottle and it fell, spilling its contents all over the kitchen floor — a veritable sea of milk !

When his mother came into the kitchen, instead of yelling at him, giving him a lecture, or punishing him, she said, “Robert, I have rarely seen such a huge puddle of milk. Well, the damage has already been done. Would you like to get down and play in the milk for a few minutes before we clean it up ?” Indeed, he did.

After a few minutes, his mother said, “You know, Robert, whenever you make a mess like this, eventually you have to clean it up and restore everything to its proper order. So, how would you like to do that ? We could use a sponge, a towel, or a mop. Which do you prefer ?” He chose the sponge and together they cleaned up the spilled milk.

His mother then said, “You know, what we have here is a failed experiment in how to effectively carry a big milk bottle with two tiny hands. Let’s go out in the back yard and fill the bottle with water and see if you can discover a way to carry it without dropping it.” The little boy learned that if he grasped the bottle at the top near the lip with both hands, he could carry it without dropping it.

What a wonderful lesson !

This renowned scientist then remarked that it was at that moment that he knew he didn't need to be afraid to make mistakes. Instead, he learned that mistakes were just opportunities for learning something new, which is, after all, what scientific experiments are all about.

Even if the experiment “doesn’t work,” we usually learn something valuable from it.

Make mistakes, you learn from them . . . . but never repeat mistakes.

Tax System explained!

Suppose that every day, ten men go out for beer and the bill for all ten comes to $100.

If they paid their bill the way we pay our taxes, it would go something like this:
The first four men (the poorest) would pay nothing.
The fifth would pay $1.
The sixth would pay $3.
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.The tenth man (the richest) would pay $59.
So, that's what they decided to do.

The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve.

'Since you are all such good customers,' he said, 'I'm going to reduce the cost of your beer by $20’.

Drinks for the ten now cost just $80.

The group still wanted to pay their bill the way we pay our taxes.

So, the first four men were unaffected.

They would still drink for free.

But what about the other six men - the paying customers?

How could they divide the $20 windfall so that everyone would get his 'fair share?'
They realized that $20 divided by six is $3.33. But if they subtracted that from everybody's share, then the fifth man and the sixth man would each end up being paid to drink his beer.

So, the bar owner suggested that it would be fair to reduce each man's bill by roughly the same amount, and he proceeded to work out the amounts each should pay.
And so The fifth man, like the first four, now paid nothing (100% savings).
The sixth would now pay $2 instead of $3 (33% savings).
The seventh now paid $5 instead of $7      (28% savings).
The eighth now paid $9 instead of $12       (25% savings).
The ninth now paid $14 instead of $18       (22% savings).
The tenth now paid $49 instead of $59      (16% savings).
Each of the six was better off than before.
And, the first four continued to drink for free.
But once outside the restaurant, the men began to compare their savings.
'I only got a dollar out of the $20,' declared the sixth man.

He pointed to the tenth man, 'but he got $10!'
'Yeah, that's right,' exclaimed the fifth man.

'I only saved a Dollar, too.

It's unfair that he got ten times more than I!'
'That's true!' shouted the seventh man.

'Why should he get $10 back when I got only two?

The wealthy get all the breaks!'
'Wait a minute,' yelled the first four men in unison.

'We didn't get anything at all.  The system exploits the poor!'
The nine men surrounded the tenth and beat him up.
The next night the tenth man didn't show up for drinks, so the nine sat down and had beers without him.

But when it came time to pay the bill, they discovered something important. They didn't have enough money between all of them for even half of the bill!
And that, boys and girls, journalists, and college professors, this is how our tax system works.

The people who pay the highest taxes get the most benefit from a tax reduction.

Tax them too much, attack them for being wealthy, and they just may not show up anymore.

In fact, they might start drinking overseas where the atmosphere is somewhat friendlier.

For those who understand, no explanation is needed.
For those who do not understand, no explanation is possible.

Why men change, when first kid is around 3 years old?

The topic might seem to look like a controversial as some might feel that I am targeting men however I wanted to bring this as many are not aware of the issues pertaining to marriage & parenting nurtured in Indian traditions and due to small mis-understandings between a couple might lead to neglect and some unprecedented situations in life.

To start with, just a recap on what is marriage?. Marriage is an arrangement between two like minded people, which will lasts long, when there is emotional and physical attachment are there in equal. If one is high then the other, then a gap is formed in the marriage, which is never spoken and live a life that leads to clashes.

Usually, the first or second year of marriage will be good, due to equal physical & emotional attachment and a feel factor will exist within new couples due to various factor like new view points, new information, new approaches, new relationships, new emotions and so on. Every thing is new and the brain forms a good factor about life.

Let us consider a baby is conceived or born for the couple around the first or second year of marriage. Again, new relationships,  emotions & physical attachment are renewed between the couple, due to the baby.

This feel factor will exist around when ...

if it is baby boy for 3 - 3 1/2 more years
if it is baby girl for 2 1/2 - 3 more years

If you look at the above statement, I have mentioned that the couple happiness lasts only 2 1/2 - 3 1/2 years after a kid is born? Seems to controversial and very targeting isn't it?

Let me try to explain you on this, in simple terms.

In Indian parenting traditional approach, when a kid is born, the attachment between the Mom & kid is there till s/he turns 12 years. What happens due to this? The attachment between couple reduces slowly. Remember physical & emotional attachment should be in EQUAL.

Just an eye-opener on this is :

The kid always hugs his/her Mom and sleeps, and naturally the husband/dad gives-in the first initial 2 to 3 years of birth of a kid, however when it prolongs, he feels that he wants the normal life back. This is the period where physical has been reduced drastically however emotional attachment still exist in the relationship, which bonds the couple to an larger extend.

For a relationship to last long, definitely you need to have both of them [things] in equilibrium. If you blame that the other is demanding, that is inability to understand the situations.

How do we over come this?

When the kid turns 3, teach him/her to sleep in a separate bed, preferably a separate bed-room also. Stick to it, what ever the situation is created by the kid. Why I am trying to say you this is, kids will be demanding and we might give-in very easily. Remember, this is parenting and you are not going to lose your relationship due to that hardship put on him/her. Don't give-in.


Once the kid is trained to sleep alone, then you will feel the attachment between couples blossom again and life is worth rewarding!

NOTE: I have specifically not used certain words & lines in this post, as I felt that those are not used to discuss in public, which is part of Indian tradition.

Are we greedy?

conférence de l’ONU Rio de Janeiro 1992


Watch this and you will find out yourself!

Are we doing enough?!