How Capri Helps Customers Strengthen their Credit History

Author: Capri Global

Your credit score is a numerical representation of an individuals’ creditworthiness that’s calculated based on an analysis of your formally documented financial history. In India, the Credit Information Bureau India Ltd. (CIBIL) is the primary agency responsible for providing credit scores and reports for individuals. To have a CIBIL score, you need to avail of some form of credit. This becomes an endless loop where you need a CIBIL score to get a loan, but banks deny applications due to the lack of a credit score.

The people most susceptible to landing in such a loop are those from lower-income households, who are often unfamiliar with the ideas of credit and investment. Their lack of exposure to the banking system puts them at a serious disadvantage as arranging funds to meet their varying needs. Here’s how Capri steps in to bridge the divide:

  • Granting access to "credit", where credit is due- When we encounter situations where customers lack a credit score, we filter through their monthly expenses and savings to make a fair assessment of their creditworthiness. Once the loan is approved and disbursed, your CIBIL score is then automatically generated.
  • An EMI Calculator that gives you a clearer picture- The eligibility calculator offered by Capri allows you to choose a principal amount and EMI that you’re confident you can repay.
  • Increase your CIBIL score- After you get a CIBIL score, the regular repayment of your debt helps increase your score.
  • Aim to make a positive difference- Fostering entrepreneurship, improving the credit history of our customers and a financially and socially inclusive strategy is at the heart of everything we do. We are committed to creating a real-life impact that extends beyond the financial world.

Our impact in numbers:

FINANCIAL INCLUSION- 28.8% of the benefactors we’ve serviced have been first-time borrowers (i.e. with no credit bureau scores). Cgcl has extended several loans to low- and middle-income groups and borrowers from low educational backgrounds.

STRENGTHENING CREDIT HISTORY- 80.7% of our customers have increased their credit bureau scores after availing loans from CGCL

By granting access to, and ensuring the timely repayments of loans we have helped our borrowers improve their credit scores:

  • The average increase in the CIBIL* Scores of the MSME customers was 46%
  • The average increase in the CIBIL* Scores of the HL customers was 66%
  • The average increase in the CIBIL* Scores of the CF customers was 5.7%

A deep understanding of the market and the prevailing trends has helped us develop systems and processes, wherein our ability to evaluate creditworthiness, regular payment capability (EMI) and loan servicing tenure is not restricted by the availability of traditional documentation, like salary statements, income tax returns, etc.

The majority of our customers belong to the financially weaker segment of society. But this doesn’t implicitly mean that they should give up on their dreams. Our loans have opened doors that let these dreamers become doers. Read more about the lives we’ve impacted in our Social Impact Report.