Definition
Commercial CIBIL Score
The Commercial CIBIL (CMR) score rates the credit risk of a business borrower on a scale, helping lenders assess companies and MSMEs rather than individuals.
While the consumer CIBIL score covers individuals, the Commercial CIBIL Rank (CMR) profiles firms based on their borrowing and repayment behaviour, typically ranked from low to high risk. Lenders use it to price and approve corporate and MSME loans.
A poor commercial score raises borrowing costs or blocks credit, much as a low personal score does for individuals. The data feeds from lenders to credit information companies, making timely repayment across all the firm's facilities important for its rank.
Related terms
- Willful DefaulterA willful defaulter is a borrower the RBI defines as one who can repay but deliberately does not, or who diverts or siphons off borrowed funds.
- Credit Information Company (CIC)A Credit Information Company is an RBI-licensed entity that collects borrowers' credit histories from lenders and issues credit scores and reports used to assess creditworthiness.
- Credit Score (CIBIL)A credit score, popularly called a CIBIL score in India, is a 300-900 number that reflects how reliably you repay loans and credit-card dues.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.