What is a CIBIL dispute? How to Resolve Issues?

Introduction

The primary eligibility criterion for every business loan application is the three-digit CIBIL score. The CIBIL score reflects the creditworthiness of the loan applicant. One must review their CIBIL report before applying for a business loan. Sometimes, discrepancies in the CIBIL score report can affect the borrowing ability of an applicant. Such issues warrant a dispute and resolution. 

Every business loan application will undergo mandatory credit verification through credit bureaus. Most lenders prefer a minimum score of 750 for processing loans for business. FlexiLoans processes low CIBIL loan applications to extend credit facilities to businesses.

Before applying for a business loan, it is best for the applicant to check their credit report. The credit report helps applicants to dispute and resolve issues and increase their chances of business loan approval. This article provides details about CIBIL disputes and how to resolve them.

What is a CIBIL dispute?

A CIBIL report is a handbook for a person’s credit history. Credit bureaus source data from different lenders like FlexiLoans to generate credit reports. Lenders and credit bureaus are interdependent. Lenders seek applicants’ credit reports, and credit bureaus seek credit information to build a profile—the credit profile links to the PAN (Permanent Account Number).

Post loan approval, lenders regularly provide bureaus with borrower activities. Standard inputs are timely repayments, missed EMIs, loan approval dates, payment defaults, pending repayment, etc. While reporting this information, incorrect information passed by lenders can hurt the credit score. The discrepancy is not limited to credit information but basic details like name, date of birth, contact information, etc. A CIBIL dispute is the process of identifying and resolving issues in a credit report.

Types of CIBIL disputes

Two types of CIBIL score disputes arise on individual and company credit reports. Lenders report different parameters on individual and company profiles. Knowing the issue category can provide a more straightforward and early CIBIL dispute resolution.

Individual disputes

• Personal details

Common issues can arise, such as a name being misspelled or incorrect contact information. For example, the misspelling of Tejashree as Tejashri will need a name rectification.

• Duplicate account

Sometimes, there might be multiple reporting of loan accounts. These duplicate accounts hurt the credit score to a great extent.

Company disputes

• Account or company details

These are common disputes concerning company-related details like name, address, contact details, directors information, credit types, loan amount, etc.

• Duplicate account

This issue is due to reporting the same loan account multiple times.

• Ownership

The owners of a business are part of the company’s credit report. These disputes arise due to the mention of an unrelated owner mentioned in a company report.

• Incorrect information fields

Some company-related information fields are mandatory in a company credit report. Disputes raised for resolutions about corrections and updates are possible. Common disputes arise due to inaccurate information concerning the following.

• Company Name – misspelt/incorrect.
• Company structure.
• Address – City/State/Pincode.
• Registered company address.
• Directors/Promoter/Partner/Proprietor name.
• Contact numbers – Telephone/Mobile.

Applicants must refrain from raising disputes about some details. These factors are not in the hands of an individual. Examples are loan approval and sanctioned date, loan account number, etc.

How to raise a CIBIL dispute?

There are two methods to dispute an issue and resolve it. One can do CIBIL correction online or offline.

CIBIL Complaint Online

• Step 1: Go to the website www.cibil.com. In the Menu, find ‘Dispute Resolution’ and select Consumer or Company Dispute Resolution.
• Step 2: Register or log in on the website after choosing the dispute category.
• Step 3: After a successful login, fill out all the required details.
• Step 4: Fill out the dispute form and select the dispute sub-category. Provide the necessary details and apply.
• Step 5: It will take some time to resolve the dispute. Have patience and check the CIBIL dispute resolution status regularly.

CIBIL Dispute Offline

Individuals and companies can dispute the CIBIL score report asking for a resolution by writing to the below address.

TransUnion CIBIL Limited, 

One World Centre, Tower 2A, 19th Floor, 

Senapati Bapat Marg, 

Elphinstone Road, Mumbai – 400 013.

CIBIL Dispute Resolution Process

Following is the CIBIL dispute resolution process.

• Upon receiving a dispute form, CIBIL verifies the issue.
• If the error is in personal details like name and date of birth, CIBIL requests the applicant for supporting documents.
• If the problem is with former and current lenders, CIBIL conveys the issue to the concerned lender.
• The lender accepts the dispute (if any and verified) and conveys changes to the credit bureau.
• The changes after resolution will appear in the following credit report.

Conclusion

CIBIL disputes are common in the credit industry. Issues in the credit report can be from both lender and the individual or company. The lender updates a few problems during internal auditing, and some the individual must dispute. However, it helps to self-check credit reports and dispute issues, if any.

FlexiLoans online platform eases the process of business loans. Generally, lenders prefer high credit scores as eligibility for a business loan. FlexiLoans provides low CIBIL business loans to MSMEs, small businesses, and women entrepreneurs if your business is good. Apply for a business loan on our website and track the loan application status live.

FAQs

Q 1. What is the CIBIL dispute resolution time?

It may take up to 30 days to resolve a CIBIL dispute. The resolution process is also dependent on the credit institution. The delay in response by the lender will affect the resolution timeline.

Q 2. How to apply for CIBIL correction online?

The official CIBIL website has a designated portal to raise CIBIL disputes. One can register on the website and highlight an issue for resolution. Applicants can also track the CIBIL score resolution status on the website.

Q 3. Can I visit the CIBIL office and raise a dispute personally?

No. Only CIBIL dispute applications received online and through the post are acceptable. Even personally delivered mail is not accepted.

Q 4. Can CIBIL update/delete any information from my credit report?

CIBIL does not update or change details in the credit report. CIBIL updates data only when authorised external sources authenticate information and changes. The external sources are credit institutions and official documents.