Learn all about CIBIL MSME Rank (CMR), how it is calculated, its benefits, and more.
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CIBIL MSME Rank (CMR) is calculated by the Credit Information Bureau India Limited. The CIBIL MSME Rank (CMR) system is used as a tool that helps financial institutions assess the credit risk associated with MSMEs. Evaluating the company’s credit history helps CIBIL assign it a score between 1 to 10. Similar to the CIBIL score used for individual borrowers, this rank is assigned to businesses and enterprises. Knowing this ranking helps you get a clear picture of your eligibility for a business loan.
It applies to MSMEs who have borrowed anywhere between ₹10 Lakhs to ₹50 Crores. This ranking is based on the credit behaviour exhibited by these MSME firms in the past. Businesses with a CMR of 1 can easily get a loan, whereas a rank of 10 makes it challenging to get approval.
To understand the meaning of CMR, you should know its parameters. These are as follows:
Credit History: Records of loans and other forms of credit taken by a company in the past, where a strong credit history reflects a lower risk of default
Repayment Behaviour: Timeliness of previous payments, overdue amounts, and delinquency status determines payment patterns and behaviour
Existing Debt: Current borrowed amount impacts CMR, where higher debt means a high risk of default
Type of Business and Industry: Sector in which your business functions can also influence this rank, with businesses with inherent risk getting a lower rank
Liquidity Profile: Well-managed liquidity boosts CMR, which is determined based on the rate of utilisation of funds and missed payments
Firmographics: Other factors such as your business’ maturity, industry, location, and ownership type may also have an impact
Take a look at the ratings relating to the CIBIL MSME Rank that are assigned to MSMEs 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, where some financial institutions may also think that a default is imminent |
CMR 10 |
Highest likelihood of defaulting or is already a defaulter |
Under the current banking system, lending to MSMEs relies on this credit rating system. Provided below is a list of prominent features and benefits of a CIBIL MSME rank:
By checking CMR, you can instantly understand the creditworthiness of your MSME
You can make informed decisions based on your MSME’s eligibility for credit
This simplifies your borrowing approach and speeds up approval, too
You can build and implement business and risk strategies with this rank in mind
With a high CMR, lenders face a lower risk of default, which allows them to extend better offers. Here are some factors contributing to its significance:
Gives eligible businesses faster access to credit
Encourages micro, small and medium-sized businesses to borrow smartly
Allows lenders to analyse risk better
Aids in creating more personalised loan terms and conditions
Allows borrowers to negotiate for lower terms with a good rank
FAQS on CIBIL MSME Rank
How can I check the CMR of my company?
To check the CIBIL MSME Rank of your firm, visit the official CIBIL website. Once you are on the CIBIL Rank page, you can scroll to the three subscription options:
₹3,000: For 1 month
₹6,000: For 6 months
₹12,000: For 12 months
Enter your company’s GSTIN and upload the needed documents. Note the registration ID and transaction ID, which will be sent to your e-mail ID. This will help you check your CIBIL Rank, Company Credit Report (CCR) and GST Report.
What is CMR in CIBIL?
CMR rating in CIBIL is a credit risk solution for lenders that predicts the probability of a business defaulting on a loan. It assigns a rank between 1 and 10 to businesses based on their credit history.
The lower the rank, the greater the risk of default associated with a company. CMR is applicable to MSMEs with aggregate commercial borrowings between ₹10 Lakhs and ₹50 Crores.
How can I improve my company’s CMR?
After checking your CMR score, you can improve your MSME’s creditworthiness by managing your outstanding debt. You can focus on lowering your credit utilisation, having a long-term credit history, and registering your business to improve your rank.
What is a good CMR?
CMR of 1 to 3 are considered good, as they reflect a low risk of default.
What is CMR in CIBIL?
CMR stands for CIBIL MSME Rank. This score reveals the likelihood of default and helps lenders make better decisions relating to a company’s eligibility for credit.
