Your mortgage record is under watch
Borrower beware! Your home loan record is going to be under the constant scrutiny of the country's banks. HT reports. HT reports. What you should do to be in banker's good booksindia Updated: Sep 02, 2010 23:16 IST
Borrower beware! Your home loan record is going to be under the constant scrutiny of the country's banks.
With the launch of 'CIBIL Mortgage Check', India's first centralised nationwide database of mortgage information, by the Credit Information Bureau Ltd (CIBIL) and TransUnion, the members banks and financial institutions will now be able to share and access mortgage information and reduce frauds.
"In many cases, fraudsters avail multiple loans on an already mortgaged property, making it difficult for lenders to keep track of such activities and people," said Arun Thukral, managing director, CIBIL. "This solution will serve as a due-diligence tool for credit grantors before establishing business relationship with new customers."
At the outset, 25 financial institutions — including the top 10 banks of the country — are members of the network, making Mortgage Check a database of 6 million home loan records which will increase substantially.
According to the Indian Banks' Association, bank frauds are on the rise in the country, and have shot up by 75 per cent in the last five years.
"With the increase of fraudulent activities in the housing sector such as fake and forged sales deeds, multiple copies of sales deeds, sale deeds of fictitious property and multiple financing, CIBIL Mortgage Check will enable banks and other financial institution to take informed decisions in assessing new mortgage applications," said S, Sridhar, chairman, National Housing Bank (NHB) and chairman and managing director, Central Bank of India.
NHB advised CIBIL to develop the repository of information on mortgage.
CIBIL already has database of 160 million records provided by 250 members, but the new database focuses only on home loans and contains information such as details of all current and post mortgages on property, address of the property, property area, type of collateral security and personal details of the borrower.
First Published: Sep 02, 2010 20:31 IST