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Are you a habitual defaulter of credit card payments? Do you default on your housing loan EMIs on a regular basis? Are you even worse with consumer loans? If such has been your behaviour with payments, note that it could land you in serious trouble soon even to the extent of not being sanctioned a loan from any financial institution. Your name may feature in the list of willful defaulters and blacklisted for good and even getting a mobile connection may become difficult.
This is because with list of willful defaulters of loans getting bigger, banks have decided to group together to share information of such defaulters enabling them to blacklist them forever.
Consequently no bank or financial institution will sanction any loan to these defaulters or offer credit cards. Such an arrangement has been worked out by the State Bank of India, HDFC and TransUnion by setting up the Credit Information Bureau (CIBIL) and is expected to go a long way in bringing down the non-performing assets of banks. The State Bank of India and HDFC hold a 40 percent stake each while TransUnion and Dun and Bradstreet hold 10 percent each in the venture.
With availability of information on the payment behaviour of customers at a fee, banks and financial institutions will be able to assess the payment pattern and accordingly take decisions related to sanctioning of finances. Such negative data sharing means if you have lets say defaulted on a loan payment from one bank, you can not only expect other banks to reject your application for any finance you may need, even your post paid mobile connection or your application for any retail loan will get rejected.