Getting stuck with a CMR Rank 10 can feel like a dead end for any MSME looking to secure funding. In 2025, banks and NBFCs scrutinize your CIBIL MSME Rank as the first step before considering any business loan. And if you’re holding a CMR Rank 10, you’re flagged as very high-risk, often leading to automatic rejection of your loan applications.
But here’s the truth: even with a poor CMR, there are strategic methods to structure your case and still get a loan approved. At CreditCares, we’ve helped several high-risk MSMEs with CMR Rank 10 secure funding using smart structuring, bureau cleanup, and alternate lender routes.
This guide will show you exactly how you can still get sanctioned—even when your score says otherwise.
What Does CMR Rank 10 Mean for Your Business?
Your CMR (Company Credit Report MSME Rank), provided by TransUnion CIBIL, ranges from CMR-1 (lowest risk) to CMR-10 (highest risk). A CMR Rank 10 tells lenders your business has:
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Poor repayment history (DPD, write-offs, settled accounts)
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High credit utilization or maxed-out OD/CC limits
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Disputes or defaults on loan accounts
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Weak cash flow as per GST turnover and credit ratio
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Frequent loan inquiries and past rejections
Naturally, lenders consider such a company a high-risk borrower and either reject the loan or offer terms with very high interest and full collateral requirements.
However, with proper documentation, structuring, and timing—you can still make your proposal fundable.
Smart Ways to Get a Loan Even With CMR Rank 10
Let’s explore the practical and proven strategies that businesses with CMR Rank 10 can adopt to still get loans sanctioned.
1. Use Collateral to Secure the Loan
When your CIBIL MSME Rank is poor, one way to reduce perceived risk is to offer strong collateral:
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Residential or commercial property
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Fixed deposits or LIC policies
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Equipment or machinery under hypothecation
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Gold assets
Lenders—especially NBFCs—may still approve a secured loan if the loan-to-value (LTV) is attractive (below 60%).
→ Learn about secured loans on Investopedia
2. Approach NBFCs Before Banks
Banks are extremely cautious with CMR Rank 10, but NBFCs (Non-Banking Financial Companies) are more flexible and often lend based on:
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Current cash flow
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Invoice or purchase order backing
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GST returns and banking habits
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Collateralized structures
CreditCares is partnered with 50+ NBFCs offering CMR-tolerant lending products, especially for businesses with consistent GST and banking activity.
→ NBFC business model explained – Investopedia
3. Add a Co-Applicant With Strong Credit
Bringing in a co-applicant or guarantor (like a director or parent company) with:
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High CIBIL score
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Stable ITRs
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Clean credit history
can give lenders the confidence to approve your loan, even when your CMR is poor.
Make sure the co-applicant’s PAN and KYC details are mapped correctly to the application.
4. Present Strong GST and Banking Records
If your CCR is weak, prove financial strength through:
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Monthly GSTR-3B and GSTR-1 filings
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Bank statements showing regular credits
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Purchase orders from large buyers
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Low cheque bounce records
Lenders often consider real-time cash flow as a stronger metric than historic repayment, especially for working capital loans.
→ GST official portal for return validation
5. Opt for Invoice or PO-Based Lending
Rather than applying for term loans, consider invoice discounting or purchase order funding—where the lender funds you against a client’s payment assurance.
These loans are sanctioned based on the credit strength of your buyer, not your CMR.
→ Learn how invoice financing works
6. Choose a Structured Product
Products like:
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Secured OD against property
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Loan against FD or Insurance
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Machinery refinance with limited EMI period
…are considered lower risk by lenders and don’t rely heavily on your CCR rank.
At CreditCares, we help MSMEs custom-structure loan applications to increase approval chances even at CMR 10.
Case Study: How We Helped a Client With CMR Rank 10 Get ₹18L Loan
Industry: Textile wholesaler (Kolkata)
Problem: CMR Rank 10 due to a settled CC limit and overdue OD
Action Plan:
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Raised dispute and updated CCR with “closed” status
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Added ₹30L collateral (residential property)
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Applied through NBFC partner
Loan Sanctioned: ₹18L at 16.5% within 27 days
Despite the high-risk rating, the smart combination of cleanup + collateral + lender targeting resulted in approval.
What You Must Avoid at CMR Rank 10
If you’re already holding CMR 10, certain actions can make things worse.
Avoid these at all costs:
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Applying to multiple banks — results in more hard inquiries
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Settling more accounts — worsens your credit profile
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Delaying GST returns — mismatches with declared turnover
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Not correcting old errors in your CCR
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Going inactive on old loans — causes data aging and scoring impact
→ File disputes on CCR data via CIBIL
How Long to Improve CMR Rank 10?
CMR rank updates happen every 30 days. With the right steps, we’ve seen CMR jump from 10 to 6 in 45–60 days.
Key factors that accelerate improvement:
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Closed disputes with corrected loan statuses
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Active repayment on new secured loans
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Clean 3-month banking/GST history
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Reduced utilization and EMI bounce rate
→ CIBIL Rank calculation insights (PDF)
FAQs: CMR Rank 10 and Loan Approval
Can I get a loan at CMR Rank 10?
Yes, with smart structuring, collateral, and the right lender, it’s possible—though terms may be stricter.
Does settling a loan worsen my CMR?
Yes. Settled status is seen negatively. Convert it to “closed” by repaying the balance, if possible.
How fast can I improve CMR Rank 10?
If strategic steps are taken, it can improve in 45–60 days. CreditCares handles this with a custom plan.
Can I check my CMR online?
Yes. Buy your CCR from CIBIL using company PAN and director KYC.
Is it better to wait or apply right away?
Depends. If funding is urgent, structure it smartly with help. If not, improve CMR first, then apply.
