What is CIBIL Rank & Company Credit Report?

What is CIBIL Rank & Company Credit Report?

A business can obtain its credit report from Credit Information Bureau (India) Limited (CIBIL). This CIBIL report comprises indicators of the company’s credit history, prompt repayments and disciplined financial borrowings. <$1span>The Commercial or Company CIBIL Report (CCR) is a multi-informational complete rating of your company’s information collated from all over India from the credit files of rating agencies by TransUnion CIBIL. Maintaining a commercial CIBIL report can aid your business in obtaining loans or investments without any issue. So, let's dive in and understand all about the steps to maintaining a good credit report for a business.

Did you know? CIBIL, formerly known as the TransUnion CIBIL Limited, was formed in 2000 based on the Siddiqui RBI Committee’s recommendations. In 2017 TransUnion bought a 92.1% stake, hence the name TransUnion CIBIL.

What is the Company CIBIL report?

CIBIL, or the former Indian Credit Information Bureau is the prime credit scoring and reporting agency. It is tasked with collecting and sourcing a company’s or individual’s financial information, which is collated under various heads and provides an accurate picture of the individual’s prior financial commitments, history of repayments, loans availed with all details, credit card information and its repayment history, and more. 

Leading financial institutions, banks, investors, etc., use the CIBIL Credit Information Report or CIBIL CCR to base their risk assessment and lending decisions on whenever a loan application is made. The company credit score or its CIBIL score is, thus, a rating of your company’s financial information and loan repayments that are not fixed and keep changing. 

The CCR has a wide array of your business data, personal information, risk scores, previous loan repayment history, etc. This business credit report also has information on the company account’s financial status that is used to judge its potential borrowing and risk capacity, financial responsibility, history of serial or concurrent defaults, etc. Thus, having a proper score increases the chance of availing of a business loan. Potential borrowers of commercial credit products are rated on this Company Credit Report when banks, investors, lenders or financial institutions make lending decisions. The CCR report applies to public limited, proprietorship, partnership and private limited companies with a credit exposure of ₹50 Crore. Hence, the credit rank impacts lending decisions and your CIBIL CCR or Company Credit Report.

Also read: GST Input Tax Credit on Supply of Goods or Services

What is Credit Rank?

The company’s credit history is collated from data submitted by banks and financial institutions across India to CIBIL; a commercial CIBIL credit rank is assigned to the company. The credit ranks assigned range from 1 to 10. The past repayment history has a strong impact on lending decisions and future company behaviour. Hence, the company’s credit ranking is similar to an individual’s credit score and is an important index of its financial health and behaviour. 

The best possible score to achieve is 1, while is the poorest score is 10 and corresponds to the 300 to 900 individual credit score limits. Keep in mind that an individual’s score of 750 to 900 is the best score or similar to a company’s 1 rank. The closer your company’s rank gets to 1, the better the companies credit check, loan terms, interest rates, and possibilities of getting commercial loans for your company’s growth.

 

Features of Commercial CIBIL Report:

When you get your business’ CCR or Company Credit Report, here are some of the features you should pay attention to:

  • ID details: This information is in the company CIBIL report’s first section and provides all factual details of the CCR along with when it was generated, at whose request, etc. Each CCR report has a unique serial number.
  • Company Profile: This section follows the ID details and has all company information such as the name, contact details, address, and the company's unique Data Universal Numbering System Number (DUNS). If the DUNS number reflects as 99-999-9999, then this is similar to the XXX mark in an individual’s score, meaning that the DUNS is yet to be assigned to your company.
  • Summary Report: This is reporting part and comprises the details of the company’s credit history, the type, amount and institutional loans availed, the outstanding balance, the total credit extended and even instances of being a guarantor to loans.
  • Enquiry summary and Credit type: This part explains the type of loans availed, whether it is a term loan, working capital loan, overdraft facility, etc. The enquiry summary is a request for credit information made through a commercial CIBIL bank loginWhen this number is high, it means you are approaching too many lenders and are trying to raise an overly high amount of credit. It also consists of credit information and specifies if the credit is instalment, revolving, or open credit. 

Also read: Where Can Input Tax Credit under GST Not Be Availed?

Procedure to get your Company CIBIL report:

Here is the step-by-step process to get your company’s CIBIL Commercial Report:

  • Firstly go to the CIBIL website- https://cibilrank.cibil.com/
  • Login via the CIBIL commercial member login tab. 
  • Next, enter the company details like its name, GSTN number, ID, Address, Type, Contact Information, etc. Click on the ‘Agree’ tab and save the filled-in application.
  • Click on ‘Continue’ and proceed to the payments page to make a payment of ₹3000 for your company’s CCR. 
  • When making an online application, you can use any payment mode and use your debit, credit, pre-paid cards, net banking, UPI payments, etc.
  • Once payment is made, you need to authenticate your saved application, which is made by answering CIBIL’s GST authentication process. 
  • CIBIL dispatches your company credit ranking score and credit information report on successful authentication within 24 hours.
  • You can also apply for the CCR in offline mode by sending the application duly filled and signed along with your fee in the form of a DD or bank draft.
  • Your offline application, credit rank/score, and CCR are sent to your address by post.

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