In 2025, Indian MSMEs applying for loans are being evaluated more rigorously than ever. Lenders no longer rely solely on ITRs or financial statements—they now depend on business credit ranks like the CIBIL MSME Rank (CMR) and the Experian MSME Rank. Both are issued by RBI-authorized credit bureaus and are crucial in determining your loan eligibility, interest rate, and risk profile.

However, these two ranks are not the same. Their scoring systems, data sources, and interpretation differ, and understanding these differences is critical for MSMEs planning to raise funds.

What Is CIBIL MSME Rank (CMR)?

The CIBIL MSME Rank is issued by TransUnion CIBIL, India’s most widely used credit bureau. It assesses the creditworthiness of businesses that have availed loans worth ₹10 lakh or more.

It is based entirely on your Company Credit Report (CCR), which includes repayment history, credit utilization, outstanding amounts, Days Past Due (DPD), and loan inquiries made by banks and NBFCs.

CMR uses a numeric scale from 1 to 10, where:

• CMR-1 to CMR-4 = Low risk

• CMR-5 to CMR-6 = Moderate risk

• CMR-7 to CMR-10 = High risk

This rank is preferred by most Indian banks because CIBIL has integrated data from over 5,000 lending institutions, giving it the widest coverage.

What Is Experian MSME Rank?

The Experian MSME Rank is provided by Experian India, another RBI-approved credit bureau. Like CIBIL, it evaluates the credit behavior of small and medium enterprises based on their business credit report.

Experian’s MSME Rank also uses a numeric scale, but the model and risk bands may differ slightly. It includes data such as:

• Loan and credit history

• Timeliness of EMI payments

• Age of credit profile

• Defaults and charge-offs

• Number of credit inquiries

The rank helps lenders assess creditworthiness in a quick, standardized manner. Many fintech lenders and NBFCs prefer Experian because of its real-time digital APIs and alternative data capabilities, as noted by Investopedia.

Key Differences Between CIBIL and Experian MSME Ranks

1. Coverage and Market Penetration

CIBIL has a longer history and is integrated with more public and private sector banks. According to RBI, CIBIL was the first CIC to be licensed in India and still leads in adoption.

Experian, while growing rapidly, has deeper adoption in the fintech space and among modern NBFCs that prefer API-based integration.

2. Data Models and Scoring Algorithms

CIBIL’s CMR is entirely behavior-driven, focusing on repayment consistency, DPD, utilization, and loan types. Experian adds more weight to credit age and may incorporate alternative data when available.

Due to differing algorithms, the same MSME might receive CMR-4 in CIBIL and an average risk score in Experian. Lenders compare both but may prioritize one depending on internal policies.

3. Rank Availability Criteria

CIBIL issues CMR only if your business has active credit exposure of ₹10 lakh or more, as confirmed on CIBIL’s MSME Rank FAQ.

Experian is more flexible. Even firms with lower limits or smaller ticket loans can have an Experian Rank, making it accessible to early-stage MSMEs.

4. Industry Usage and Lender Preference

Banks like SBI, HDFC, ICICI, and Axis typically rely on CIBIL CMR while underwriting high-value business loans. NBFCs like Indifi, NeoGrowth, and LendingKart may use Experian, particularly for digital onboarding.

Some lenders pull both reports to cross-verify MSME health, while others base approval entirely on CMR or Experian Rank.

Which MSME Rank Matters More?

There’s no one-size-fits-all answer. However, for MSMEs targeting traditional term loans, working capital, or OD facilities from banks, CIBIL MSME Rank holds more weight due to widespread adoption and RBI-compliant data coverage.

If you’re seeking:

• Quick digital business loans

• Low-ticket unsecured lines

• Loans from fintech players
  then Experian MSME Rank may come into play more frequently.

That said, keeping both scores clean and active is the safest strategy in 2025.

How to Improve Both CIBIL and Experian MSME Ranks

• Maintain zero DPD (no late EMIs or overdue accounts)

• Keep OD and CC utilization below 50%

• Avoid frequent loan inquiries across multiple lenders

• Check and dispute errors using CIBIL Dispute Portal or Experian Dispute Resolution

• Maintain a healthy credit mix—secured and unsecured, long and short term

• Download and review both reports every quarter

As noted on CRIF High Mark, consistent credit activity and on-time repayment are the top ways to build a favorable credit rank.

FAQs on CIBIL vs Experian MSME Rank

Is it possible to have a CIBIL Rank but not an Experian Rank?
Yes. If your lender reports to CIBIL only, Experian may not generate a score.

Which rank is used more for sanctioning business loans?
CIBIL MSME Rank is used more by traditional banks, while Experian is popular with fintechs and newer NBFCs.

Can I check my Experian MSME Rank online?
Yes, you can check your Experian Business Credit Report on the Experian India Portal.

Does a good Experian Rank help if my CMR is poor?
It may help with NBFCs, but most banks still prioritize CMR, especially for high-value loans.

How often are these ranks updated?
Both CMR and Experian MSME Ranks are generally updated monthly, based on lender data submitted to the bureaus.

Final Word

In today’s credit environment, both CIBIL and Experian MSME Ranks play a vital role in determining your funding access. Knowing how they differ, where they’re used, and how to maintain them is key to securing the best loan offers in 2025.

MSMEs should treat their business credit reports with the same seriousness as their financial audits. Clean credit behavior, not just profits, is the foundation of modern lending decisions.