CRIB doubles lender profiles within six months
The Credit Information Bureau (CRIB), the nation’s primary credit information authority, has doubled its lender profiles to 18 million within the last nine months, by accessing databases of gold loans, factoring, margin trading and pawning firms.
“In the past six months, we have accessed data from all these firms. Now we are expanding our database and the scope by capturing other databases to enrich and empower marginalised populations to get into formal lending,” Pushpike Jayasundera, Director /General Manager of CRIB told The Sunday Times Business. CRIB is undertaking a significant expansion of its database by incorporating alternative data sources. This strategic initiative is aimed at broadening credit access to all citizens and enhancing the credit eligibility of micro, small, and medium enterprises (MSMEs), Mr. Jayasundera said.
Not much has been done in the marginalised sectors to collect data to facilitate credit, but traditional credit scores applied to individuals and businesses with a financial profile have always been given preference when taking out credit.
“In this sense, we are attempting to collect information that these sectors are accustomed to. This will incentivise them to obtain financial sector facilities, which the bank or finance company will use as collateral,” Mr. Jayasundera added.
He noted that approximately credit facilities of Rs. 1.2 trillion is given a month in the financial sector, 62 per cent of which goes to corporates, whereas 13 per cent goes to individuals. He noted that out of the 62 per cent, only 450 companies gain credit. “This is mainly due to the information’s symmetry because the financial sector only gives credit to known credit profiles, and as a result, they overload the same clients with credit,” he added. He also said that a credit score is a powerful credit management tool which can define the probability of default for the next 12 months. “Most countries rely heavily on credit scores.”
Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable options now on Hitad.lk before deciding on what will work best for you!