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.

The Commercial CIR includes a dedicated section for assessing the credit risk of commercial borrowers through the CreditVision® CIBIL Commercial Rank (CV CMR). CV CMR is a statistical model that differentiates risk levels on a scale from CMR-1 to CMR-10, where CMR-1 represents the lowest risk and CMR-10 the highest

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. CreditVision® CIBIL Commercial Rank

CreditVision® CIBIL Commercial Rank (CV CMR) is a credit risk ranking model that profiles borrowers based on their credit behavior over the past 36 months. It factors in borrower size, product type, and behavioral trends to deliver a comprehensive risk assessment.

Built on TransUnion CIBIL’s proprietary CreditVision® framework, CV CMR leverages recent, credit-impactful data points to capture emerging trends and product nuances.

The ranking scale ranges from CMR-1 to CMR-10, where CMR-1 indicates the lowest risk and CMR-10 represents the highest risk.

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® (CCV) is a combination of Trended Algorithms & Credit Attributes which strengthen the decision-making process by bringing in more actionable insights.

CCV offers a trended view of borrowers’ credit behavior over the past 36 months, enabling comprehensive profiling to support multiple business requirements in lending.

•       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