Credit appraisal includes a series of processes to understand the credit behaviour of a particular customer in order to make a credit decision. It mainly includes due diligence of customers and collaterals, assessment based on financial statements, and getting other details from different rating agencies. Based on the other internal and external factors, banks assess the financial requirements of their customers. Banks and other financial institutions in India are getting details of the financial characters of individuals and companies, mainly with the help of TransUnion CIBIL.

TransUnion CIBIL is one of India’s pioneer information and insights companies, and it provides an accurate and comprehensive picture of each individual and their associate’s functions under the Reserve Bank of India (RBI) approval. It is the most popular amongst the four credit information companies (the other three are High Mark, Equifax, and Experian) that operate in India. Each of these companies has their own unique scoring system. CIBIL score came into existence in the year 2000 and has become the most recognised credit scoring system available in India.

CIBIL not only has access to credit information people, but it also includes members, including lenders of various types. It does this by collating and collaborating information from all the banks and the customers' financial histories. At present, TransUnion CIBIL provides CIBIL scores and reports to individuals, commercial CIBIL scores, i.e. non-individual credit reports and CIBIL MSME rank to businesses along with other financial - non-financial information about the customers to the financial institutions. It helps financial institutions understand customers so that they can make more informed decisions, and customers can be confident their data identities will result in the financial opportunities they deserve.

Details of reports provided by TransUnion CIBIL at present

CIBIL score

It is the score that determines the creditworthiness of an individual and even businesses. It is a deciding factor or make or break of a loan or credit application. It ranges between the spectrum of 300 to 900, and this range varies from company to company. The closer the score is to 900, the easier it gets for the loan application to get processed and approved. A score of 300 denotes the minimum creditworthiness, and a score of 900 denotes the maximum one. The CIBIL score becomes the representation and reflection of an individual’s ability to repay the borrowed sum of money to lenders within the duration of repayment. It is calculated based on past credit repayment history, credit utilisation, duration of availing credit, enquiries made for new credits and mix of credit (i.e. secured and unsecured).

CIBIL commercial report

The CIBIL commercial Report is a comprehensive and multi-dimensional credit file information on potential commercial borrowers (such as private limited companies, public limited companies, proprietorship, and partnership firms) that helps financial institutions make informed lending decisions. This report is mainly impacted by company background, nature of the industry, credit history, and credit utilisation.


CIBIL MSME Rank (CMR) is a robust model that risk differentiates borrowers in the smallest micro-segment with aggregate commercial credit exposure of fewer than INR 0.10 crores to the medium segment with aggregate commercial credit exposure of INR 50 crores. It is assigned to the MSME based on its credit behaviour, credit profile, and firmographics. This rank is on a scale of 1 to 10, with CMR-1 being the lowest-risk MSME and CMR-10 being the highest-risk MSME.

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