What is CIBIL MSME Rank

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CIBIL MSME Rank (CMR)

The CIBIL MSME Rank (CMR) system is essentially used as a tool that helps financial institutions assess the credit risk associated with MSMEs. It summarises your Company Credit Report (CCR), which is a record of your company's credit history, based on data submitted to CIBIL by lending institutions. This helps financial institutions make informed lending decisions.

It applies to those MSMEs that have borrowed anywhere between ₹10 Lakhs to ₹50 Crores. The CMR system provides a rank (ranging from 1 to 10, where 1 is the best possible rank) to MSMEs. This ranking is based on the credit behaviour exhibited by these MSME firms in the past.

How is the CIBIL MSME Rank Calculated?

The CMR is calculated after careful evaluation of key parameters such as:

1. Repayment Behaviour

Timeliness of previous payments
Overdue amounts
Delinquency status

2. Liquidity Profile

Rate of utilisation of funds
Missed payments

3. Firmographics

Vintage of credit relationships

Understanding Different CIBIL MSME Ranks

We will now take a look at the CMR ranking points that are assigned to MSMEs. You can find details in the table below:

CIBIL MSME Rank	Probable Risk
CMR 1	Lowest Possible Default Risk
CMR 2	Very Low Risk of Defaulting
CMR 3	Low Default Risk
CMR 4	Significantly lower than the average risk of defaulting
CMR 5	Marginally lower than the average likelihood of someone defaulting
CMR 6	Fairly average likelihood of defaulting
CMR 7	A higher than average likelihood of defaulting
CMR 8	A high likelihood of defaulting
CMR 9	A very high likelihood of defaulting. Some financial institutions may also think that a default is imminent
CMR 10	Highest likelihood of defaulting or is already a defaulter

Features & Benefits of CIBIL MSME Rank

Provided below is a list of some of the prominent features and benefits of a CIBIL MSME rank:

Check the credit ranking and thus the creditworthiness of your MSME
Gain further insights into the credit status of the firm
Make informed decisions based on your MSME’s eligibility
Simplify the borrowing process by understanding your firm’s eligibility
Build and implement business and risk strategies tailored to your financial needs

How can I check the CMR of my company?

To check the CIBIL MSME Ranking of your firm, follow these simple steps:

Step 1: Visit the official website
Step 2: Fill in your personal and company details
Step 3: Make the required payment, which is usually ₹3,000
Step 4: Note the registration ID and transaction ID, which will be sent to your e-mail ID
Step 5: Upload your KYC

What is CMR in CIBIL?

CMR is a credit risk solution for MSMEs that- predict the probability of a small business becoming NPA within the next 12 months. CMR assigns a rank on a scale of 1 to 10 to the business based on their credit history. The higher the CMR, the greater the risk of NPA associated with the business. CMR is applicable to MSMEs with aggregate commercial borrowings between INR 10 Lakhs and INR 50 Crores.