Quite often we find CIBIL credit score for people, but when you manage a company or business, the CIBIL tables are entirely different. CIBIL produces a credit score and a credit data report for individuals (CIR). CIBIL produces a business credit report or a CCR for commercial creditors such as businesses and companies.
WHAT IS A CIBIL COMMERCIAL REPORT?
Much as a CIBIL score refers to an individual's lending value, a trade report by CIBIL underlines a company's lending worth. The CIBIL commercial report is therefore a systematic declaration reflecting an organisation's financial health in terms of information obtained from banks and financial institutions. This detailed report is further used for assessing a company's creditworthiness when a commercial loan is needed.
The following information is included in a CIBIL commercial report:
- Company background: Include background information on the company, such as the legal establishment, branches, ownership and operating years.
- Financial information: Financial data that decide the company's credit standards.
- Financial history: Finance info, including payments, collections, income production, and more relevant to the financial history of the company. Besides these, the CIBIL rank is also essential. A rank of CIBIL resembles a score of CIBIL. It numerically summarises the company's CCR. Just like the score of CIBIL is between 300 and 900, a CCR ranges from 1 to 10, where 1 is the best possible. Only businesses with Rs.10 lakh credit exposure to Rs.10 crore are granted this designation. When you get closer to 1 the higher your chances are for a business loan to be secured.
HOW TO GET A COMPANY COMMERCIAL REPORT?
On the official website of CIBIL you may obtain your commercial survey. It should be noted, however, that in order to join your CCR a paid subscription fee of Rs.3,000 is required. Mentioned below are the steps.
- i.Go to the official website of CIBIL - cibil.com/online/Company-credit-report.do.
- ii.Now, you will be required to fill out the application form with the requested information such as legal constitution and registered address of the company, name and address of the applicant requesting the CCR, contact details of the company and applicant, PAN and other details, enclosed document details and additional information.
- ii.Now, you will be required to fill out the application form with the requested information such as legal constitution and registered address of the company, name and address of the applicant requesting the CCR, contact details of the company and applicant, PAN and other details, enclosed document details and additional information.
- iii.Next, select your mode of payment of ₹3,000 via the online options available.
- iv.Post payment, CIBIL will assign your application request a unique Registration ID and Transaction ID which will be mailed to your email ID.
- v.Now, upload your KYC documents. Post submission, the CCR and CIBIL rank will be delivered to you within seven days at the company’s registered address.
WHAT IS CMR IN COMMERCIAL CIBIL?
Banks, financial institutions, and other legitimate lenders in the CIBIL MSME rank (CMR) are aided in determining the financial history and lending value of an MSME. These MSMEs are rated between 1 and 10, and the customer who is unlikely to default is the CIBIL MSME Rating 1 that reflects the maximums of creditworthiness. Due to a number of factors, MSMEs have borrowed large sums from the bank and cannot pay back it because of their own financial instability or problems.It led to the need for a universal ranking in which banks and other financial institutions would easily determine the creditworthiness of the borrowing company before issuing the loan. It also allows businesses to borrow up to Rs 30 Laks in order to meet their operating capital requirements. It enables flexible returns options for a period between 12 and 60 months. Master loans can now be used very easily and include the best MSME loans, including the Bajaj Finserv Business Loan, which is now available on Finserv MARKETS.Since no collateral is needed in the provision of this loan, the loan is processed very rapidly and your MSME loan application will be accepted within 3 minutes.
WHAT IS CIBIL RANK?
CIBIL Rank is equivalent to the CIBIL score given to individuals, provided to commercial organisations. It sums up the complete Company Credit Report (CCR) on a scale of 1 to 10 in one digit. Basically, the credit rank shows the chance of default payments. Therefore lower the ranking, the more likely a loan is. Therefore, 1 is the highest possible ranking. It should be remembered, however, that a credit rank is not allocated to all firms. The credit rank is applicable to only companies with a loan exposure of 10 lakh to 50 crores.