The Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) on Thursday inked MoUs with two leading credit bureaus of the country to prevent frauds in the mortgage sector by facilitating easier access to the information on the credit score of potential borrowers and the encumbrance status of the property proposed to be mortgaged.
R V Verma, CEO and managing director, CERSAI said ?These MoUs between CERSAI and the credit bureaus ? Experian Credit Information Company of India (ECICL) and Equifax Credit Information Services Private (ECISPL) ? will help to make available information to the lending industry, both in respect of security status as well as credit profile status of the borrowers.?
These Credit Bureaus and CERSAI together will act as a strong risk mitigant for the lending industry and enhance their confidence, he said, adding that, in turn this will result in more informed decisions and efficient pricing of the loan.
Speaking on the occasion, Financial Services Secretary D K Mittal said, “This collaborative venture will bring considerable value to the industry and enhance their confidence in lending. The scope and coverage of the central registry will be further expanded to include a host of other activities.”
CERSAI had entered into a similar collaboration agreement with credit information bureau CIBIL. Besides CIBIL, ECICL and ECISPL are amongst the important credit information companies of the country. Meanwhile, National Housing Bank (NHB)-operated Credit Risk Guarantee Fund Trust for Low Income Housing (CRGFTLIH) on Thursday entered into agreement with four more lenders. With this, the total number of institutions who have decided to join the Credit Risk Guarantee Fund Scheme has gone up to nine, including SBI and HDFC. These institutions will now be eligible to avail the Credit Guarantee Cover under Credit Risk Guarantee Scheme for the housing loans given by them to the economically weaker sections said R V Verma, CMD National Housing Bank (NHB).
