CIBIL MSME Rank: what the CMR 1 to 10 scale means

CIBIL MSME Rank in brief

CIBIL is TransUnion CIBIL, a credit bureau licensed in India. Its CIBIL MSME Rank rates the business, not the owner. The scale runs from CMR-1, least risky, to CMR-10, most risky (TransUnion CIBIL). It predicts the probability of the business becoming a non-performing asset in the next 12 months (TransUnion CIBIL).

The rank was extended in 2020 to businesses with credit exposure below ₹10,00,000, with ₹50,00,00,000 as the upper limit then (TransUnion CIBIL). The current upper limit was not re-verified.

How lenders use the CIBIL MSME Rank

Lenders read the CMR beside the promoter's personal CIBIL score, which runs from 300 to 900 (TransUnion CIBIL). Some price loans by it. Bank of Baroda, for loans above ₹25,00,000 up to ₹7,50,00,000, sets its spread by CMR and security cover, from BRLLR + 0.30% at CMR-1 (Bank of Baroda).

Example

Two traders ask one bank for the same loan. One has CMR-2, the other CMR-6. At a bank that prices by CMR, the CMR-2 business is likely to be quoted a lower spread, because the bank expects less risk.

Related terms

• Full guide: CIBIL MSME Rank (CMR).
• CIBIL score for a business loan.
• Collateral can offset a weaker rank.