Commercial Credit Risk Assessment

1. Commercial Credit Information Report

Commercial Credit Information Report (Commercial CIR) provides you with comprehensive and multi-dimensional credit data information on commercial borrowers so that the lending institutions can make more informed lending decisions. These borrowers include non-retail borrowers like public limited companies, private limited companies, partnership firms and proprietorships.

Commercial CIR offers a wealth of data, ranging from summary of the credit profile, identification of delinquency, identification of derogatory data, enquiry summary, related party information, location details, details by loan type and asset classification with an additional layer of on_lender, off_lender bifurcation  and complete credit history of every tradeline reported on the borrower.

Commercial CIR also has a specific section to risk evaluate the commercial borrower – CIBIL MSME Rank (CMR). CMR is a statistical credit risk predictor model that risk differentiates on a scale of CMR-1 to CMR-10 (where CMR-1 is least risky and CMR-10 is most risky).

Additionally, Commercial CIR has a separate section called Commercial CreditVision® (CCV) -  Trended algorithms covering aspects of Vintage, Missed Payment behavior, Debt buildup behavior, Utilisation, Delinquency that help summarize the credit profile in  an analytical manner.

Lending Institutions can evaluate the capability to repay debt obligations of the borrowers. CCV enables the lending institutions to create better business growth opportunities at the same time manage risk effectively.

2. CIBIL MSME Rank

CIBIL MSME Rank (CMR) is a credit default predictor model for commercial entities with an aggregate exposure till ₹50 crores.

CIBIL MSME RANK (CMR) provides insights in the credit behavior of the borrowing entity and predicts the probability of default over a one year horizon, thereby, helping the lenders to make well informed credit decisions. On a scale of CMR-1 to CMR-10 (CMR-1 being the least risky and CMR-10 being most risky), CMR risk differentiates the structurally strong MSMEs from the risky MSMEs.

Benefits to lenders:

• Empowering lenders with a risk predictive indicator
• Simplifying the underwriting process
• Reducing the turnaround time in loan decision making process
• Standardising risk interpretation
• Aiding risk-based pricing strategy

3. Commercial CreditVision® (CCV)

Commercial CreditVision® is a combination of Trended Algorithms & Credit Attributes which strengthen the decision making process by bringing in more actionable insights. Based on up to 36 months of trended historical data, Commercial CreditVision® helps identify specific borrower behavioural characteristics that can be used by lenders to take better informed decisions with more precision.

•       Unravels the borrower behavior for better decisions:

Commercial CreditVision® helps to understand how a borrower has arrived at its current risk level thereby revealing a lot about the borrower’s ability of meeting the debt obligations.

•       Extensive coverage of borrower characteristics:

robust library of trended algorithms & attributes spanning across loan types, lender types, industry, business types.

•       Lending strategy for the growing (Micro, Small, Medium Enterprises) MSME segment

Commercial CreditVision® capture the intrinsic behavioural characteristics of the borrower like credit hungriness, ability to repay, headroom available, liquidity profile, vintage amongst many other insights.

•       Efficient and Effective loan lifecycle management

Given the exhaustive coverage of Commercial CreditVision® across commercial loan types and lenders, lenders can make the processes of Acquisition, Portfolio Management & Monitoring and Recovery & Collection better and more effective.

Commercial CreditVision® adds finer nuances to the key credit risk pillars and thus helps to uncover the potential opportunities and unrevealed risk