The much awaited Credit Information Bureau (India) Ltd was launched on Wednesday with a database of 5.5 million consumer credit records which would help creditors to evaluate risks, reduce incidence of defaults and non-performing assets.

CIBIL has built operations over 18 months and now has 87 members -- 60 commerical banks, eight financial institutions, housing finance entities and an equal number of non-banking finance companies -- CIBIL managing director Satish Mehta told reporters in Mumbai.

CIBIL, promoted by State Bank of India and HDFC Ltd, has operationalised the consumer credit information bureau while the commercial bureau -- for database on corporates and partnership firms - would become functional in the second half of 2004-05, he said.

Dun & Bradstreet and Trans Union International Inc are equity and technology partners and have provided systems and methodology support to CIBIL, Mehta said.

CIBIL chairman S Santhanakrishnan said the consumer credit ratio in India was just 3 per cent of the gross domestic product with low delinquency rates but as lending grows, it would increase risks for default.

However, credit reports by CIBIL would help financial sector entities to accurately evaluate risks and lower NPAs. Currently, the NPAs of commercial banks are pegged at Rs 70,000 crore (Rs 700 billion), Santhanakrishnan said.

The prudent borrowers would get more credit on better terms and also make credit decision making process objective and transparent, he said.