What to check before you sign, send or borrow

What a CIB report is

CIB stands for Credit Information Bureau. It is a credit-information system through which banks and financial institutions share information about borrowers and their repayment history. A CIB report is not a court judgment, a criminal record or a permanent blacklist. It is a record that can be incomplete, outdated or wrong.

How to check your report

Ask your bank or microfinance institution about its process for requesting your own credit information, or follow the current process published by the Credit Information Bureau. Carry the identification the process asks for. Fees and turnaround times can change, so confirm them with the institution rather than relying on an old blog post.

What to look for

• A loan that was repaid and closed but still appears open.
• An amount that does not match your statement or settlement letter.
• A duplicate facility reported by two institutions.
• A borrower name or identity that is not yours.
• An overdue that you believe was caused by a bank error, not by non-payment.

If something is wrong

Raise the correction with the institution that reported the record, not with an agent who promises to "clean" your CIB. Bring the evidence: the loan statement, the settlement letter, the receipt, your identification and a short written explanation. Keep a copy of everything you submit and note the date and the name of the person who received it.

The institution and the Credit Information Bureau decide whether to correct the record. No honest adviser can guarantee a deletion or a particular timeline.

If the overdue is genuine

Talk to the institution before the account deteriorates further. Ask for the current balance, the penal charges and the options for a repayment plan. Put any agreed plan in writing. Paying something is usually better than avoiding the branch, but do not borrow from an informal lender at a rate you cannot service.

Before you apply

Write down the purpose, the amount, the tenure and the source of repayment. Use the EMI calculator on this site to see what a monthly instalment would look like at different rates and tenures. If the instalment would take up most of your monthly surplus, the loan is probably too large.

Documents commonly requested

Requirements vary by institution and product. Ask for the full list in writing; do not assume that a document from one institution will be accepted by another.

• Identification and address proof.
• Photographs and a completed application form.
• Evidence of income and expenses, such as a bank statement, business records or a salary letter.
• Group recommendation or membership documents for a group loan.
• Collateral documents where the product requires security.

Read the agreement

• The interest rate, and whether it is fixed or floating.
• The method used to calculate interest and the effective annual cost.
• Processing, insurance, documentation and other fees.
• The repayment schedule and the due date of each instalment.
• Penal charges for late payment and the prepayment terms.
• The security or guarantee, and what happens if the loan is not repaid.

Group loans and joint liability

In a group loan, members may be jointly responsible for repayment. Understand that before you sign. Attend the group meetings, keep your own copy of the agreement, and do not sign for a loan you are not willing to repay if another member defaults.

After approval

Check the disbursed amount and every deduction against the sanction letter. Keep the receipts. Pay on time and ask for a statement if you lose track. If you cannot pay, contact the institution before the due date and discuss the options; get any restructuring terms in writing. No one can guarantee approval, and paying an agent for an approval is a red flag.

Why KYC exists

KYC means Know Your Customer. Institutions verify identity and address to open an account, prevent fraud and money laundering, and meet their regulatory obligations. It is not a favour to the branch and it is not a one-time formality; the record has to stay current.

Documents commonly requested

The exact list depends on the institution and the account type. Ask the branch for its current checklist rather than carrying a stack of unnecessary documents.

• Citizenship certificate, passport or another accepted photo identity.
• Address proof such as a utility bill, rental agreement or local-government letter.
• A recent photograph and a specimen signature.
• For some accounts, evidence of the source of funds or income.
• For a minor or a dependent account, the guardian's identification and relationship documents.

When to update

• Your address or phone number changes.
• Your name changes, or your identification document is renewed.
• The institution asks you to re-submit because the record is old.
• An account has been dormant and you want to reactivate it.

Share documents safely

Submit documents at the branch or through the institution's official app or website. Do not send a citizenship photograph to an unofficial WhatsApp number or an agent who found you on social media. Ask for an acknowledgement and keep a copy of what you submitted. If a request feels unusual, call the institution's published number and confirm it.

The one rule

No legitimate bank, microfinance institution or remittance company will ask for your one-time password, PIN, password, CVV or full card number. If someone asks, stop the conversation. That is the whole rule; everything else is a variation.

Common patterns

• A call says your loan is approved and asks for a processing fee before disbursement.
• A message says you have won a prize and asks you to pay a tax or a delivery charge.
• A caller claims to be from the CIB and offers to remove a default for a fee.
• A job offer asks for a deposit, a training fee or your original certificates.
• A remittance caller asks you to cancel or re-send money to a different receiver.
• A link asks you to log in to a page that looks like your bank's website.

Verify before you act

Call the institution's published number, not the number in the message. Use the MFI Directory to find the institution, then use the website only if it is marked verified; a candidate website is a lead, not a confirmed address. Never approve a transaction you did not initiate.

If you have already paid or shared credentials

• Contact your bank or institution immediately and ask it to block the card or account.
• Keep the message, the caller number, the transaction reference and any receipt.
• Report the incident to the institution and to the Nepal Police Cyber Bureau.
• Change your passwords and enable two-factor authentication where it is available.
• Check your statements for unauthorised transactions and dispute them in writing.

Report, do not negotiate

Do not pay a second fee to recover the first one. Do not share more documents with the same caller. Report the incident even if the amount is small; the pattern is what helps investigators and other customers.

Use a licensed channel

Send money through a bank, a licensed remittance company or another channel authorised by Nepal Rastra Bank. An informal agent may offer a better rate, but you have little recourse if the money does not arrive. Check the company's authorisation rather than relying on a shopfront sign.

Compare the total cost

The advertised exchange rate is only one part of the cost. Ask for the fee, the rate actually applied and the amount the receiver will get in Nepali rupees. A higher rate with a large fee can be worse than a lower rate with no fee. The NRB reference rates on the Exchange rates page are a benchmark, not a guarantee of the rate a remittance company will offer.

Keep a record

• The receiver's full name, address and phone number.
• The reference or tracking number.
• The amount sent, the fee, the rate and the amount received.
• The date and the name of the agent or branch.

If a transfer is delayed

Contact the remittance company with the reference number and ask for a written status. If the company does not resolve it, escalate to its complaint channel and then to Nepal Rastra Bank. Keep the receiver informed so they do not pay a second sender or a caller who claims to be from the company.

Clear information before you sign

You should be able to see the interest rate, the fees, the penal charges, the repayment schedule and the security before you sign. If a term is explained only verbally, ask for it in writing. Do not sign a blank form or a document you have not read, and ask for a copy of everything you sign.

Records you should keep

• The loan agreement and the repayment schedule.
• Every deposit and instalment receipt.
• Statements or passbook entries.
• Any letter about a restructuring, a waiver or a correction.

How to complain

Start with the branch or the institution's complaint desk. Describe what happened, give the date and the amount, and ask for a written response. If the institution does not resolve it, use its formal grievance channel and then the supervisory channel published by Nepal Rastra Bank. Keep copies of every letter and note who received it.

What is not acceptable

If you face any of these, record the date, the place and the people involved, and report it through the institution's grievance channel and the regulator. Do not share your account password or OTP with anyone who offers to help.

• A branch withholding your identification documents or your ATM card.
• A demand for payment that is not explained or receipted.
• Threats, public shaming or pressure to borrow from another lender to repay.
• A refusal to give you a statement or a copy of your agreement.