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Credit Rank and the Credit Score - Are They the Same?

Credit Rank : The credit MSME rank (CMR)/credit rank reflects the credit behaviour of a business or a company.
Credit Score : Credit score represents the credit profile of an individual, based on personal loan history, credit cards, repayment habits and financial discipline at a consumer level.

Below is the comparison and difference between Credit Score and Credit Rank to have a better understanding of both.

Point of Difference	Credit Score	Credit Rank
Applicable To	For Individuals	For Companies(Prop,Partnership,Pvt Ltd etc)
Value Range	Three-digit figure between 300 and 900	Ranking ranges between 1 to 10
Loan Approval Impact	Credit Score more or equal to 750-, Great Chances of loan approval	Closer to 1 – higher the chances of loan approval
Basis of Evaluation	Summary of past and present loan track record	Summary of track record of Company/ firm past and current loan

Since both of them (credit MSME rank and credit score) serve different purposes and follow different assessment rules, every business owner should understand how the two operate. If you want to read a deeper breakdown, read: Difference between business credit score and personal credit score.

What is a Commercial Credit Report/Company Credit Report?

A commercial credit report, also known as the Company Credit Report (CCR), is a comprehensive document that details your business entity’s entire credit history and financial behaviour.
The RBI-regulated credit bureaus compile this report using data from banks, non-banking financial companies (NBFCs), and housing finance institutions. This report is available to any business entity with credit exposure, whether you operate as a proprietorship, partnership, private limited company, or public limited company.

Why is the Commercial Credit Report Important?

A Commercial Credit Report (CCR) is essential when a company applies for a loan. It demonstrates the company’s financial discipline and creditworthiness to lenders.
The report includes a credit rank, which indicates the borrower’s risk level. A rank closer to 1 significantly improves the chances of loan approval, as it shows a high likelihood of repayment without default. Companies should review their CCR at least once a year to ensure their credit standing remains strong.

What is Covered in a Commercial Credit Report?

Commercial Credit Information Report contains detailed information about a business entity which may be Proprietorship, Partnership, LLP., Private Ltd, or a Public limited firm.

Following are the different sections covered in a Commercial Credit Report

Identification: It is present at the top and contains Report Order Number, which indicates the number of times your report has been accessed from Credit’s database.
Enquiry Information: This section specifies the name of the company, an identification code, and address.
Borrower Profile: It is further divided into 4 sub-sections:
Borrower Details: It includes company name, legal constitution, class of activity, etc.
Address and Contact Details: It includes the registered office address, phone number, etc.
Identification Details: It includes the company’s PAN, company registration number, etc.
Delinquencies Reported on the Borrower: It includes the payment status of the company and the guarantors.
Credit Rank: This section displays your credit rank, which ranges on a scale of 1 to 10. The lower the rank, the better are the chances of getting a loan.
Enquiry Summary: This section displays the list of inquiries done by lenders in the recent past.
Derogatory Information: This section contains information regarding defaults, overdue and dishonored cheques.
Outstanding Balance Details: This section provides an overview of the company’s asset classification with respect to the credit facilities availed.
Location Details: This section mentions additional contact information of the company.
Related Parties Details: It gives information about the related individuals or entities.
Credit Facility Details – As Borrower: This section contains details of the credit facilities availed by the company. It contains credit facility details, payment status, and overdue details.
Credit Facility Details – As Guarantor: This section contains details about the credit facilities guaranteed by the company.
Suit Filed Details: It gives details of suits filed (if any) by any of the previous lenders for the company.
Credit Rating Summary: It contains the latest three credit ratings assigned to the company by an external accredited rating agency.
Enquiry Details (Last 24 Months): This section provides details regarding the inquiries made by lenders for your company’s credit application.

What is a Good Credit MSME Rank for a Business Loan?

A good credit MSME Rank for a business loan is CMR 1 to 3, as this range indicates the lowest credit risk and gives the highest chance of approval at better interest rates.
However, credit rank for companies such as 4 or 5 can definitely access institutional credit, but it just costs more and takes longer.

Documents Required to Check Commercial Credit Report

1. For Public and Private Limited Companies

Proof of Address (any 1): Electricity or telephone bill, bank account statement or passbook, registered lease/sale agreement of office premises, address proof issued by commercial or multinational banks, registration certificate issued under Shops & Establishment Act.
A copy of board resolution along with authorized signatory list and specimen signature.
Company PAN.
Proof of Identity of one of the authorized signatories: PAN/Passport/Driving Licence.
Any utility bill or telephone bill (should not be more than ninety days old).

2. For Partnerships

Proof of Address (any 1): Electricity or telephone bill, registered lease or sale agreement, bank account statement, etc.
Copy of partnership deed or certificate of registration.
List of authorized signatories with specimen signatures.
PAN of the partnership firm.
Proof of Identity of Partner requesting for the Company Credit Report: PAN, Driving Licence or Passport.

3. For Proprietorships

Proof of Address (any 1): Electricity bill, registration certificate issued under Shops & Establishment Act, etc.
Proof of Identity of the Proprietor: PAN, Passport, or Driving License.

Tips To Improve Your Credit MSME Rank

The following are a few tips that can help you to improve your business credit MSME rank :

Always pay the loan EMIs and other outstanding dues on time to maintain a good repayment history.
Try to maintain a low credit utilization ratio to improve the company’s creditworthiness.
Sustain a long and good credit history to improve your company’s credibility.
Always maintain a feasible amount of outstanding debts, so that the company’s repayment ability is not affected.
Maintain a good balance between the company’s assets and available liabilities.
Review your commercial credit report online once a year so you can identify errors, mismatches, or old entries that may be pulling your credit rank down.
Check the repayment track record of loans taken by companies where you are signed as guarantor.
Try to make no or fewer hard credit enquiries in the recent past and apply for a new loan only when you feel the need.

As India’s leading credit MSME rank improvement firm, Credit Help India helps businesses analyse their business credit report, resolve inaccuracies, strengthen weak factors and rebuild a healthier credit profile.

Frequently Asked Questions

CIBIL is a repository of information that collects and maintains the data provided by Banks and NBFCs, where individual have or had loans in the past. It has information about individual past and present repayment history and the status of individual loan accounts, personal information such as individual identity information, employment history, contact information, etc. It also keeps track of all the enquiries that individual has made for credit from various banks and financial institutions.