[ 2011-04-12 ]

Credit Reference Bureau target’s microfinance institutions
Credit reference bureau, XDS Data says it is now
working on signing up other financial institutions
and companies after getting almost all the
commercial banks to subscribe to its services.

The institutions XDS is targeting include;
microfinance firms, rural banks, insurance and
utility companies and retailers.

The move will see all these institutions provide
the bureau with the necessary information on their
customers to enrich its database.

It essentially means that any failure to settle
your debts, be it for credit purchases or utility
bills will directly affect your credit history.

Chief Executive of XDS, George Ahiafor explained
to Joy Business it will give the real meaning to
reducing the cost of credit, when completed.

He said the banks have always blamed the
excessively high interest rates in the country on
risk and that once the information provided by
bureau helps to assess the credit risk of
borrowers, banks can reduce their own risk and
interest rates as well.


He added that individuals must ensure that their
banks provide their credit history to the bureau
to improve their chances of securing credit at
competitive rates.

Source - MyjoyOnline

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