Equifax Credit Information Services Private Ltd (ECIS) announced it is launching a microfinance credit bureau. ECIS is a joint venture between Equifax and six Indian financial institutions — Bank of Baroda, Bank of India, Kotak Mahindra Prime Ltd, ReligareFinvest, Sundaram Finance Ltd and Union Bank of India.

This is the second credit bureau following the one set up by Microfinance Institutions Network (MFIN), self-regulatory body for the NBFC-Microfinance sector.

Credit bureaus for the MFI sector will lower the rates of delinquency and control over-indebtedness. This will also help MFI customers establish their credit history, said a press release issued by the company, on Monday.

Mr Samir Bhatia, MD and CEO, ECIS, said, “With the Equifax Microfinance credit bureau in place, consumers who may have otherwise been unable to obtain assistance can now establish their credit history and obtain funding.”

Mr Alok Prasad, CEO, MFIN, said, “Dedicated credit bureaus for the sector (MFI) will bring much-needed transparency at the client level and will help curb multiple lending.

Source: India Brand Equity Foundation
Date: May 31, 2011