Is there any business entrepreneur in this world who does not have a bad loan? The great American economist Mr. Paul Volcker who helped shape American economic policy for more than six decades and also served twice as Chairman of the Federal Reserve of the USA for about 10 years under two US Presidents namely Jimmy Carter & Ronald Reagan once told …..
“If you don’t have some bad loans, you are not in business” – Paul Volcker
If you dig deep into financial history of all the big business houses, most of them have had bad loans & have defaulted on their loans at some point in time. Today, even Government departments, State Governments & even large countries are defaulting on their loan repayments. There is nothing strange or unusual about this.
Now the question is – Have they all come into the radar of these credit monitoring agencies or these so called “Credit Bureaus” before they did any further business? Have they all been given poor credit scores? Is there a bad credit history existing for all these big companies & big business houses? Assuming there is one, how were they able to weather the storm without any difficulties or much damage.
In reality, nothing of that sort has happened. If so, those big business would not have grown & become so big today which means either these credit monitoring agencies have simply ignored these big business houses or it has had very little effect on these big business houses.
In India, there are four big Credit Bureaus or the “Credit Information companies”. In India, the oldest & the biggest credit bureau is the TransUnion CIBIL Credit Information Bureau India Limited. Other three credit bureaus, are the Equifax Credit Information Services, Experian Credit Information Company of India and CRIF High Mark Credit Information Services.