CRIB to introduce ‘credit score’ to assess loans | Daily News


 

CRIB to introduce ‘credit score’ to assess loans

The Sri Lanka Credit Information Bureau will introduce a ‘credit score’ that measures a person’s ability to repay a loan.

The Sri Lanka Credit Information Bureau (SLCIB) is set to introduce a new program called ‘CRIB SCORE’ in the middle of this week to scientifically measure a person’s debt repayment capacity and his credit risk according to a globally accepted methodology.

Sri Lanka Credit Information Bureau Director and General Manager Nandimitra Anthony said the introduction of such a credit facility will facilitate both the customer applying for a loan from the bank and the lending bank.

He said that with the introduction of the new methodology, the Credit Information Bureau’s reports will be available to financial institutions fast, eliminating existing delays in obtaining a loan and making them more efficient. With the introduction of the credit rating programme for individuals or joint ventures, lenders will be able to gain an understanding of the current creditworthiness of any individual. In addition, the customer will have the opportunity to see the potential of his or her repayment in the presence of the bank clerk, he said.

The CBSL introduced a credit rating scheme for Sri Lankan banks and financial institutions earlier this year. The General Manager stressed that Sri Lanka will be able to obtain the next number in the Business Facilitation Index named by the World Bank and with the implementation of this credit score introduction programme.

Individuals and businesses will receive between ‍ 250 and 900 marks under the new programme,which measures debt repayment viability and credit risk. According to those scores, six classifications will be made as A, B, C, D, E, and X. Under A rating, a person with an A score has a very low risk in repaying a loan. B is less risky. C is the average risk. D is at high risk. E is at a very high risk. X is considered as insufficient information.


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