In 2025, banks don’t just look at your balance sheet when you apply for a business loan—they scrutinize your Company Credit Report (CCR) in detail. Issued by credit bureaus like CIBIL, this report acts as a mirror of your MSME’s financial behavior.

Whether you’re applying for an OD facility, a term loan, or a government-backed MSME loan, what’s inside your CCR can make or break your approval. If you don’t know what banks check in your Company Credit Report, you’re gambling with your chances.

This guide will show you exactly what lenders look at in your CCR, why it matters, and how you can prepare your business to qualify for high-ticket funding.

What Is a Company Credit Report (CCR)?

A Company Credit Report is a credit file prepared by licensed credit bureaus like TransUnion CIBIL, Experian, CRIF High Mark, and Equifax.

It contains vital financial data about your MSME:

• Active and closed loan accounts

• Overdues and DPDs (Days Past Due)

• Credit utilization percentage

• Loan settlements or write-offs

• Promoter and PAN details

• Credit inquiries made by banks or NBFCs

Lenders use your CCR report to assign risk, interest rates, and even decide the loan amount you’re eligible for.

✅ Section-Wise Breakdown: What Banks Check in a Company Credit Report

Let’s break down what banks and NBFCs actually check before sanctioning a loan.

1. CMR Rank – Your Business’s Credit Rating

The first thing lenders check is your CIBIL MSME Rank (CMR). It’s a numeric rating from 1 to 10, where:

• CMR-1 to CMR-4 is considered safe

• CMR-5 and above signals higher risk

• CMR-NA means your business has no data—also seen as risky

👉 Learn more at CIBIL MSME Rank – Official Guide

In 2025, banks rarely approve unsecured loans unless the business has a CMR Rank of 4 or better.

2. DPD (Days Past Due) History

Banks scan every loan account in your CCR for DPD entries—the number of days you delayed a payment.

Even a single EMI with DPD of 30+ days in the last 12 months can:

• Trigger auto-rejection

• Lower your CMR

• Result in higher interest

🔗 What is DPD – Explained by Investopedia

Pro tip: Keep zero DPD for the last 6–9 months to stay eligible for major business loans.

3. Overdue Amounts (Current and Historic)

If your CCR shows even ₹1 outstanding in any loan, most lenders will pause your application until it’s cleared.

Banks check:

• Total overdue amount

• Number of overdue accounts

• Duration of non-payment

Even minor amounts affect your creditworthiness because overdue status signals risk.

4. Loan Account Status (Closed, Settled, Written-Off)

Each loan entry in your CCR shows a status:

• Closed – Positive

• Settled – Negative

• Written-off – Highly negative

• Open/Active – Neutral

Banks immediately reject applications if you’ve ever settled or written off a loan. This reflects irresponsible repayment.

Learn the impact of “settled” status from CIBIL’s help portal.

5. Credit Utilization Ratio

Lenders pay close attention to how much of your OD or CC limit is used. This is called credit utilization.

• Ideal ratio: Under 50%

• Above 80% = Red flag

• Above 100% = Overdrawn = Rejection

For example, if you have a ₹10 lakh CC limit and you use ₹9.5 lakh, it shows you’re overly dependent on credit.

🔗 Understanding Credit Utilization – Investopedia

6. Hard Inquiries from Lenders

Each time you apply for a loan, the lender pulls your CCR—creating a hard inquiry.

Too many inquiries:

• Drop your CMR rank

• Show financial desperation

• Lead to algorithmic rejection

Banks usually allow only 1–2 inquiries in the past 30 days. More than that? You’re flagged.

7. Loan Mix & Repayment Pattern

Lenders prefer a healthy mix of credit: OD, term loans, machinery finance, etc.

They also analyze:

• Repayment track record

• Any early closures (positive)

• Late payments or bounces (negative)

A stable loan mix with 100% EMI punctuality helps boost both CMR and loan eligibility.

8. Business Vintage & Data Completeness

Banks reject CCRs that lack:

• Proper PAN and promoter info

• Udyam or GST registration match

• Business age under 12 months

Make sure your business registration documents are updated with CIBIL and your lenders.

💼 Real Bank Sanction Example (Based on CCR Data)

📌 Checklist: Prepare Your CCR Before Loan Application

✅ Make sure your CCR is updated, error-free, and supports your application.

📉 What Happens If Banks Find Issues in Your CCR?

• Rejection without explanation

• Higher interest rates (if approved)

• Loan amount lowered

• Collateral demanded

• Delay in sanction/disbursal

🧠 Most rejections in India today are algorithmic, based purely on CCR data—not even human discretion.

🧠 FAQs – What Banks Check in CCR for Business Loan

1. What CMR Rank is required for unsecured MSME loans?

CMR-1 to CMR-4 is preferred. Anything above CMR-5 faces challenges.

2. Do banks check all four credit bureaus?

No. Most use CIBIL for MSME loans, but some NBFCs also use CRIF or Experian.

3. How long does CCR data affect my loan eligibility?

CCR history affects your eligibility for up to 3–5 years, depending on issue severity.

4. Can I hide a bad CCR by applying to multiple DSAs?

No. Every DSA submits your PAN, which triggers new credit inquiries and further damages your CMR.

5. Can CreditCares help me fix my CCR?

Yes. We offer full CCR analysis, error dispute support, and CMR Rank improvement guidance.