For MSME owners in India, navigating the loan process in 2025 can feel confusing — especially when you’re told your loan was rejected due to a low score, but you have a decent CIBIL Score. The missing link? You probably don’t know your CMR Rank.
As business financing becomes more data-driven, lenders are now assessing both CMR Rank (CIBIL MSME Rank) and CIBIL Score — and they’re not the same thing.
In this blog, we’ll break down what each of them means, how they affect MSME loan eligibility, and which one truly matters more in 2025.
What Is CIBIL Score?
The CIBIL Score is a three-digit score (300–900) that represents the creditworthiness of individuals. Issued by TransUnion CIBIL, it’s based on your personal credit history.
A higher score means you’re financially disciplined, and lenders trust you more.
Factors affecting your CIBIL Score:
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Credit card payment history
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Personal loan EMI performance
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Total credit utilization
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Length of credit history
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Number of credit inquiries
A CIBIL Score above 750 is generally considered good for personal loans and credit cards.
What Is CMR Rank (CIBIL MSME Rank)?
CMR (Company Credit Rank) is a business-specific credit ranking system for MSMEs. It ranges from CMR-1 (best) to CMR-10 (worst) and reflects the creditworthiness of your business entity, not you as an individual.
It’s derived from your Company Credit Report (CCR), which includes:
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Past and current business loans
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OD/CC usage
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DPDs (Days Past Due)
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Loan settlements or defaults
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Credit inquiries made by lenders
CMR is assigned only to businesses with at least ₹10 lakh in outstanding loans for 6+ months.
🔗 Read more on Company Credit Report – CIBIL
🆚 CMR Rank vs CIBIL Score: Key Differences
| Criteria | CIBIL Score | CMR Rank |
|---|---|---|
| Applies to | Individuals | Businesses (MSMEs) |
| Score Range | 300–900 | CMR-1 to CMR-10 |
| Report Type | Personal Credit Report | Company Credit Report (CCR) |
| Used For | Credit cards, personal loans, co-applicant loans | Business loans, working capital, OD/CC |
| Evaluated On | Personal EMI history | Business loan history, credit mix, utilization |
| Required By | Retail banks, credit card issuers | Banks/NBFCs for MSME funding |
🏦 What Do Lenders Prefer in 2025?
If you’re applying for a business loan under your firm or company name, your CMR Rank matters more than your CIBIL Score.
Why?
Because banks and NBFCs are now following risk-based pricing models. They assess your:
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Business’s creditworthiness (CMR Rank)
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Promoter’s personal credibility (CIBIL Score)
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GST, bank statements, and ITRs
In short, both scores are checked, but for business loans, CMR Rank is the deal-breaker.
🧨 Common Scenarios Where MSMEs Are Confused
❌ Case 1: High CIBIL Score, But Loan Rejected
Reason: The business’s CMR Rank is 8 (poor). Even if the owner has 780 CIBIL Score, lenders won’t approve a ₹20L working capital loan.
❌ Case 2: MSME Has Never Taken a Loan — Rank NA
Reason: No CMR Rank exists due to lack of credit activity. Banks mark it “ineligible” under their policies.
✅ Case 3: Rank CMR-3, but Owner’s CIBIL Score is 670
Result: Loan is approved with slight adjustment in interest rate. The strong business rank wins.
📊 Why CMR Rank Is Now Critical in 2025
1. AI-Driven Underwriting Models
Lenders use AI and analytics to assess risk, and CMR Rank is a primary input. A poor rank = auto-reject.
2. Mandatory CMR Check by NBFCs and Banks
New RBI and banking guidelines require lenders to pull a Company Credit Report during underwriting for any loan above ₹10L.
🔗 Source: Reserve Bank of India – Lending Guidelines
3. Tied to Credit Guarantee Schemes
Schemes like CGTMSE prefer borrowers with:
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No past defaults
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CMR-1 to CMR-4
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Clean credit history
Your MSME might lose subsidy eligibility if CMR Rank is poor.
📉 What Causes a Low CMR Rank?
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Delayed EMI or OD payments
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Loan settlement or write-off
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High credit utilization (>75%)
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Frequent loan applications
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CCR errors or outdated entries
🔗 Learn more: Common Mistakes That Hurt Your CIBIL Rank
✅ How to Improve Your CMR Rank
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Pay dues on time — always
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Keep OD/CC usage below 50%
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Avoid settlements — repay in full
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Don’t apply to too many lenders at once
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Correct any errors in your CCR using the CIBIL dispute process
🧠 FAQs: CMR Rank vs CIBIL Score
1. Can I get a business loan with only a CIBIL Score?
Only if you’re applying as an individual or sole proprietorship. For companies or partnerships, CMR Rank is essential.
2. What is a good CMR Rank for MSME loan approval?
CMR-1 to CMR-4 is considered safe and eligible for most bank and NBFC loans.
3. My CIBIL Score is high, but I have no CMR Rank. What to do?
Start with a small business loan or OD, repay it cleanly for 6+ months — this will generate your CMR.
4. Can I check my CMR Rank online?
Yes. You can request your Company Credit Report at the official CIBIL portal
5. Can CreditCares help build my CMR Rank?
Absolutely. We help MSMEs across India:
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Fix their Company Credit Report
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Improve CMR from 9 or NA to 1–4
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Make them loan-eligible in just 90 days
