What is CIC? Falling into bad debt will be affected?
What is CIC? How to check my own CIC like?
Why should I pay attention to credit history when making loan transactions with a bank?
What is CIC?CIC stands for Credit Information Center, also known as Credit Information Center. CIC is an organization of the State Bank of Vietnam. This organization has the function of receiving, storing, analyzing, processing and forecasting credit information of individuals and organizations in order to serve the operation of banks and credit institutions. With this definition, you understand what CIC is, let's find out what the function of CIC is below!
What is the function and operation of CIC?CIC Center is the intermediary bridge for banks as well as credit institutions to have a basis to verify credit of individuals or organizations. Or, you can also understand that before you apply for a loan at a bank or credit institution. These entities will check your credit information. This credit information will largely determine whether or not you are accepted for credit also known as unsecured loan.CIC is responsible for requesting banks, credit institutions to send documents to CIC so that they can update their list of customers with credit loans. From this information source, CIC will review, classify and arrange the location as well as give credit scores to each individual, business organization.
What is bad debt on CIC system?Bad debts are debts that are overdue for interest payments or principal payments over 90 days or the possibility of debt evasion. CIC will conduct a classification of the data provided by the bank and credit institution. Then, CIC will update the following information:Amount of money used, used and currently borrowedWhat is the purpose of the loan?
What bank is the credit contract signed with?How long is the repayment period?Debt repayment history up to the present timeThe borrower is in which debt groupIs there any mortgage or not?Based on the above information, CIC will statistic and classify bad debts according to each group.
It is divided into 3 groups of bad debts such as:
Group 3 debt (sub-standard)
Group 4 debt (doubtful)
Group 5 debt (high risk of capital loss)
Banks and credit institutions will rely on that to easily grasp the credit history of each individual.How many groups of bad debt are there?Bad debts are classified by CIC in the process of arranging credit-related data.
Individuals and enterprises are determined to be bad debts when falling into the following groups:
Group 1: Qualifying loans (which are debts that can be fully recovered by both principal and interest on time. overdue interest penalty of 150%)
Group 2: Outstanding outstanding loans (which are overdue from 10 to less than 90 days)
Group 3: Sub-standard loans (which are loans overdue from 90 days to 180 days)
Group 4: Outstanding doubtful debts (which are overdue debts from 181 days to 360 days)
Group 5: Outstanding loans with potential loss of capital (which are debts overdue for more than 360 days)If you are in NPL, your credit rating will be affected quite a bit. Falling into bad debt, the possibility of being accepted by banks and credit institutions for loans is quite low or unacceptable.