Financial Times - CRIB helps ‘good’ borrowers

CRIB helps ‘good’ borrowers

Borrowers from banks and finance companies are often wary of CRIB because it provides financial institutions information on the ‘good’ and ‘bad’ status of borrowers.

Now CRIB (the Credit Information Bureau of Sri Lanka) wants to allay such fears and not be perceived as a ‘bad’ guy. This is by enhancing the credibility of ‘good’ borrowers. “Our credit reports (statements requested by financial institutions) will provide details of all borrowers who have paid up in full without default on loans taken.

It would immensely improve their credit rating. Banks are always looking for good and reliable borrowers,” said N.P.H. Amarasena, CRIB’s Director/General Manager.

CRIB is also removing off its credit reports – after a year – borrowers who have defaulted but subsequently settled the loans in full. Earlier the names were available forever.

According to CRIB 2005 annual report, a total of 176,074 loans were given by all financial institutions of which 50,913 borrowers had defaulted.

Information retained by CRIB is confidential and cannot even be accessed by a court order or the Inland Revenue Department, according to Amarasena unless under some specific laws.

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