Frequently Asked Questions (FAQs)

What is a Credit Information Bureau/Credit Registry?
The bureau is a repository of credit information of borrowers. The member lending institutions provide credit data (personal and loan information) of their borrowers to the bureau which consolidates, updates, and stores the same and provides this information to its members FIs in the form of credit worthiness reports (CWR). The Credit Information Bureau also aid financial institutions to make well informed credit decisions in timely manners minimizing the credit risk.

What is the Credit Information Bureau (CIB) of State Bank of Pakistan (SBP)?
The Credit Information Bureau (CIB) is a public sector credit bureau of Pakistan. It was established in 1992 by the State Bank of Pakistan (SBP) under Section 25(A) of Banking Companies Ordinance-1962. The CIB is a part of Banking Surveillance Department of the State Bank of Pakistan. All fund and non-fund base credit facilities irrespective of any outstanding amount are being reported to the CIB. Reporting to the CIB is mandatory for all member financial institutions (FIs).

Is there any other Credit Bureau other than CIB operating in Pakistan?
Yes. There are three privately owned credit bureaus in Pakistan: Datacheck, News-VIS Credit Information Systems and ICIL/ PakBizInfo.

Where does the CIB get its information from?
The CIB gets information on borrowers from all the member financial institutions.

Who can be/are the members of CIB?
All Banks, Development Financial Institutions (DFIs), Non- Bank Financial Institutions (NBFIs), Modarabas and Micro Finance Banks operating in Pakistan are members of the CIB. Only the financial institutions operating in Pakistan are entitled to become member of the CIB. The membership with CIB, as per instructions of SBP and SECP, is mandatory for all Banks/DFIs and NBFCs respectively. No financial institution can access the CIB database without having its membership.

What is Credit Worthiness Report (CWR)?
A credit worthiness report (CWR) is a factual statement of the borrowers’ credit position, on a certain date, compiled on the basis of information received from the member financial institutions. The CWR contains certain financial and non-financial information on borrowers (sample report is placed on the main page of the eCIB web). The CWR only shows the total liabilities (both fund & non-fund based) but does not reflect the names of lending financial institutions.

What is the objective of Credit Worthiness Reports (CWR)? Does the CWR provide a credit rating of the borrower? Does it reflect only negative information?
The basic objective of the CWR is to facilitate the member financial institutions in evaluation of credit risk on the basis of borrowers’ past behavior. The credit worthiness reports help the lending institutions in establishing and viewing the credit histories of potential or current borrowers. CIB’s CWR neither express any opinion about the borrower creditworthiness nor assign any rating to the borrowers. It provides factual position of the borrowers’ credit position both negative and positive as of certain date.

What is not included in CWR?
A CWR does not include race, income, religion, political affiliation, ethnic background, medical history, private affairs details, bank deposit accounts details or other information not related to credit.

What is the definition of “consumer” and “corporate” for CIB reporting purposes?
For CIB reporting purposes, credit data of individuals and sole-proprietorships is reported under consumer category whereas credit data of all other business concerns like partnerships, private limited companies, public limited companies and corporations etc. is reported under corporate category.

Is it mandatory for financial institutions to obtain credit worthiness report of a prospective borrower before extending any credit facility?
Yes. The financial institutions are required to obtain credit worthiness report of the prospective borrower before extending any financial facility to him/her which is in excess of the limit laid down in this regard by the State Bank from time to time. Currently, this limit is Rs. 500,000 and above.

Can a borrower prevent the CIB from having his/her information?
No. The CIB is legally empowered to collect credit information. The member financial institutions are bound to share their credit information with the CIB.

The financial institution that extracted credit worthiness report (CWR) is not providing me with a copy. Can I get a copy of my CWR, or a copy of CWR of the person to whom I am a guarantor, directly from CIB?
No. Presently, under the law, only the financial institutions are authorized to access the credit worthiness report (CWR) of a borrower/guarantor. The CWR is a confidential document and cannot be provided to borrowers/guarantors. However, the SBP is reviewing this law and, at some later stage, the individuals/companies may have access to their CWRs.

Is any financial institution allowed to access a credit worthiness report (CWR) of a person who is not its customer?
Yes. The financial institutions are allowed to access the credit worthiness report (CWR) of any person in the CIB database even if he or she is not its customer. This arrangement is necessary in order to enable the financial institutions to have the CWR of their prospective customer.

Is their any regulation restricting financial institutions from lending to a borrower having negative credit worthiness report (CWR)? Is the SBP dictating its terms on credit appraisal of financial institutions through CIB?
No. SBP has not issued any regulation restricting financial institutions from lending to a borrower having negative credit worthiness report (CWR). The financial institutions have to make their own lending decision on the basis of their lending policies, credit track of borrower and other strategic business decisions. SBP is in no way involved in the lending process of financial institutions and does not dictate its terms through the CIB.

My credit application is turned down by a financial institution. Does it mean that I am not entitled to avail any credit facility from other financial institutions as well?
No. The credit worthiness report (CWR) does not prohibit any borrower from availing any financial facility. The financial institutions make their own lending decision on the basis of information available to them on the CWR in the light of their own lending policies. If one financial institution rejects your credit request, it does not mean that all other financial institutions will also do the same.

Why has the CIB placed my name as defaulter?
The CIB does not name any borrower as a defaulter at its own. The concerned FIs have reported your name as a defaulter to the CIB. If you want to make correction in the CIB record, please contact the reporting institution.

If I settle my overdue liabilities today, how long it will take to clear my credit worthiness report (CWR)?
The CIB updates data on monthly basis. The data of a particular month received from FIs latest by the 10th of the following month. Then CIB consolidates the data and makes it available to member financial institutions by the 20th of the same month thereby reflecting the position as of last date of the previous month.

How the negative credit worthiness report (CWR) can be improved?
The negative CIB report may be due to some outstanding liabilities of financial institutions that were either not paid or paid after due date. You should discuss the matter with your lending financial institutions and work out a repayment/settlement plan with them. Once your loan account is regular, your credit worthiness report (CWR) will reflect the improved position.

How long does the CIB keep my credit information? How long defaults history is reflected on the CWR?
The CIB keeps a lifetime credit record of the reported borrowers. However, in case of consumer, the credit worthiness report (CWR) available to member financial institutions provides the latest position as of the last date of preceding month along with history of 12 months. This means that if a borrower settles his default with a financial institution, such default will continue to appear in his CWR for the next 12 months from the date of settlement. However, his current status will be reported as regular

I am a nominee director in a company; do the liabilities of this company have any effect on my credit worthiness report (CWR)?
No. The CWR of a person associated with a company in the capacity of nominee director is not affected.

How groups are formed and group liabilities determined?
The responsibility of formation of group and consequent group liabilities rests with the reporting financial institutions in line with the definition of group and the criteria laid down vide Prudential Regulation for Corporate Commercial Banking.

Is there any interim arrangement with the CIB for reflection of my settlement of overdue liabilities with the financial institutions?
The CIB has a limited option for reflection of interim amendment in credit worthiness report (CWR) but this information must be received from the concerned financial institution. No amendment can be made at borrower’s direct request to CIB. In case of incorrect reporting from any financial institution, the CWR can be amended through the concerned financial institution, any time. However, in case of settlement of liabilities, standard remarks (Concerned FI has informed that the borrower has repaid amount of Rs……… on ……date) can be added to the CWR at the request of the reporting financial institution.

When I approach CIB for making any correction/change in my credit worthiness (CWR) report, why is the matter referred to financial institutions? Can CIB amend my CWR at my request?
The CIB does not amend any CWR on its own at the request of borrower. The ownership and true position of the data reported to the CIB rests with the reporting financial institution; hence CIB cannot verify the borrower’s claim at its end. Any correction in CIB data can only be made through the reporting financial institution.

Does the CIB take any punitive action against financial institutions reporting wrong information on any borrower?
Yes. When it comes to the notice of the CIB that a financial institution has misreported the CIB data, penal action is taken against such financial institution.

Whom should I contact to resolve disputes with the private credit bureaus?
The concerned financial institution may be approached for any correction in the report of private credit bureaus. However, the CIB helpdesk (address given at web page) may be contacted in case the borrower is not satisfied with the reply of concerned financial institutions.

Whom should I seek to resolve my problem with the financial institution and how?
You should first approach your concerned financial institution to resolve your dispute/problem. Speak to the staff who, attended to you or contact the financial institution's complaint section/cell. In many instances, a personal visit or a simple phone call can resolve your problem. If this does not help, you can write a letter or e-mail to the head of the institution or a senior person in the financial institution. All financial institutions are expected to deal with consumer problems and feedback fairly, promptly and consistently. However, the CIB helpdesk (address is given below) may be contacted in case the borrower is not satisfied with the reply of concerned financial institutions.

What should I do before I contact the financial institution?
You should have a clear idea of what your concerns are and how you would like the financial institution to address these concerns. Get your customer reference number, account number, NIC number and other supporting documents ready before you contact the financial institution.

What else should I take note of?
Here are some useful tips:
• Be clear about your problem.
• Take down the name of the person you spoke to, the date and details of your conversation.
• Make photocopies of your documents before sending them to the financial institution and keep the originals.
• Keep records of e-mails and letters you have with the financial institution or anyone else you have contacted about your problem.
• In general, you should expect a reply from the financial institution in 2-3 weeks or else follow-up. If your problem is complicated, it may take a longer time to resolve
What is the role of the CIB is case of dispute with financial Institution?
CIB’s role is to ensure that member financial institutions report their credit data in accurate and timely manner in accordance with the law and relevant instructions. The CIB is however, unable to resolve commercial disputes between you and your financial institution.

Further
CIB can...
• Investigate incorrect/mis-reporting by financial institutions and rectify the record.
• Take punitive action against financial institutions that have breached rules and regulations.

CIB cannot...
• Intervene in matters relating to service standards, commercial decisions such as pricing policies of financial institutions, contractual arrangements and civil disputes.
• Give legal advice or comment on cases that have been heard in court or are pending legal action.
• Order financial institutions to compensate you.
• Disclose the outcome of any investigations or actions taken against individual financial institutions.

When should I contact CIB about my problem?
The matters which CIB would be concerned about also include:

• I have not availed any credit facility but my credit worthiness report (CWR) still shows some outstanding liabilities against my name?

• I have resigned from the directorship of a company but my name still appears as its director in the credit worthiness report (CWR)?

• I have paid my overdue/defaulted loans but my credit worthiness report (CWR) has not yet updated

• I want to lodge my complaint with the CIB about my credit worthiness report (CWR)?

If I complaint to the CIB, what will the CIB do with my complaint?
The CIB needs to understand the full background of your case. This means getting an explanation from the financial institution about the issues you have raised. If you have not already written to the financial institution about your problem, where appropriate, the CIB shall send your issue to them for their comments. Generally you will receive a reply from CIB or the concerned FIs within 2-3 weeks. If your case is complex, it may take longer.

Can CIB tell me what action it has taken against the financial institution or its employee?
For confidentiality reasons, CIB does not inform the public of its dealings with specific financial institutions. The CIB, therefore, does not inform you of the outcome of any investigations or actions taken against a financial institution or its employee.

My case has been heard in court. Can SBP still help?
The SBP does not comment on disputes which have already been admitted in the court. In other word, SBP does not intervene in subjudice cases.
If you want further clarification or want to complain, please contact SBP helpdesk at following address.