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@article{201223,
        author = {Prof. Priyanka Sagar Pawar and Shudhir Kumar Roy},
        title = {“A Study On CMR (Cibil Msme Rank) And Its Effectiveness In Msme Loan Evaluation”},
        journal = {International Journal of Innovative Research in Technology},
        year = {2026},
        volume = {12},
        number = {12},
        pages = {4890-4898},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=201223},
        abstract = {Micro, Small and Medium Enterprises (MSMEs) play a crucial role in economic growth, employment generation and industrial development. However, lending to MSMEs involves higher credit risk due to factors such as irregular cash flows, limited collateral and inconsistent financial records. To manage this risk, financial institutions increasingly rely on data-driven credit assessment tools such as the CIBIL MSME Rank (CMR).
This study examines the effectiveness of CMR in MSME loan evaluation and its role in predicting credit risk and loan outcomes. The research is based on an analysis of ten MSME loan cases evaluated during an on-the-job training program. Primary data was collected through direct observation of loan files, credit appraisal processes and interactions with credit officers. This report provides a comprehensive analysis of the connection between the CMR (Credit Management Rating) rank of a company and its ability to obtain loans, the likelihood of rejection and/or default, and various other factors related to the loan process, including but not limited to: age (vintage) of the business, past financing history, days past due (DPD), and collateral, as well as the lender’s own anti-money laundering (AML) procedures, and industry risk.
The research also found that MSMEs (Micro, Small & Medium Enterprises) with lower CMR rankings (2-4) received more than 70% of the loans that were approved and showed an overall trend of better repayment performance than those with higher CMR rankings (6-9), who experienced a higher rejection rate from lenders and subsequently becoming a non-performing asset. CMR also serves as an early warning system of financial difficulties; however, after credit decisions are made by lenders, both financial and non-financial criteria do influence the decision.
The study concludes that CMR is a reliable and effective tool for MSME credit risk assessment when used alongside traditional appraisal parameters. It supports objective decision-making, improves credit quality and helps reduce default risk in MSME lending.},
        keywords = {},
        month = {May},
        }