It is not just individual borrowers who take loans. Business entities, too, may require a business loan to bridge a financial gap at some point. As with individuals, a good credit score allows a company to get loans from banks and non-banking financial institutions easily. In the same way that a CIBIL Score shows an individual's financial trustworthiness, a CIBIL credit rank represents a company's creditworthiness.
The CIBIL rank of a company is identical to an individual's CIBIL Score, and the credit report of a firm is equivalent to an individual's credit report. Read on to know about the differences between the two.
What is CIBIL rank?
Companies are assigned a CIBIL rank from 1 to 10, with 1 being the highest and 10 being the worst. Most financial institutions are considered financially fit if their CIBIL rank varies from 1 to 4. Repayment conduct and credit utilisation are the two primary characteristics considered when assessing a company's CIBIL rank. It should be noted that CIBIL rank is only given to businesses with loans totalling up to Rs. 50 crores. However, a company's lack of a CIBIL rank should not be interpreted negatively. It simply means that the company does not match the eligibility requirements for a CIBIL rank. This CIBIL rank is listed on the company credit report.
