Cibil develops ranking system for MSME borrowers

New Delhi, Dec 21 (KNN) Credit information company TransUnion Cibil on Tuesday unveiled a ranking system for MSME borrowers which intends to expand credit flow to small businesses.

This initiative also aims to help lenders avoid loan losses on such bets, reported Business Standard.

Over 6 crore MSMEs will be rated under the ‘FIT Rank' launched by TransUnion Cibil in association with Online PSB Loans.

It will be done by drawing inputs from their current accounts, income tax returns and also Goods and Service Tax (GST) returns to arrive at a score between 1-10 to rate a borrower after taking consent to draw the relevant data.

The capacity of an enterprise to pay will be mapped by the lenders through the ranking, Cibil's managing director and chief executive Rajesh Kumar told reporters.

Till now, the leading credit information company (CIC) had the Cibil MSME Rank model in the market which was taking inputs from past loans, but new to credit customers were left out.  (KNN Bureau)