How Can the MSME Sector Increase CIBIL Score Fast?

how to increase cibil score fast

India’s economic growth largely depends on the MSME sector, which the government supports through several programs.  For example, the launch of the Atmanirbhar Bharat project provided a 100% credit guarantee on loans to MSMEs made through the ECLGS.

ECLGS support achieved its goal by providing much-needed financial help to the MSME segments that are most vulnerable to the pandemic’s effects—such as extremely small and micro businesses and MSMEs operating in high-stress industries, including trade, transportation, and hospitality. This timely financial infusion helped MSMEs revive their businesses and enhance prospects for sustainable growth.

One of the main obstacles to the development of MSME, a sector that is highly important to our nation’s economic prosperity, is often seen as a lack of financial knowledge. MSMEs need to learn about CIBIL scores and commercial credit reports in order to acquire quicker and better access to financing for business expansion.

What is the CIBIL Score?

CIBIL Rank/Score uses machine learning algorithms to predict the probability of an MSME becoming a non-performing asset (NPA) in the next 12 months. On a scale of one to ten, the CIBIL score assigns a rank to the MSME based on its credit history data; CIBIL Rank-1 represents the least risky MSMEs, and CIBIL Rank-10 represents the riskiest MSMEs.

Before granting commercial loans to an MSME, banks and other credit agencies evaluate the company’s Commercial Credit Report and CIBIL Score. Additionally, some banks and credit institutions provide MSMEs with loans based on their CIBIL score, meaning that an MSME with a higher CIBIL score will pay a reduced interest rate.

How to Increase CIBIL Score Fast?

how to increase cibil score fast to avail faster and easier access to loans? MSMEs need to understand the importance of CIBIL Rank in order to obtain loans more quickly and easily. MSMEs must actively take charge of their own credit health. MSMEs can take the following actions to ensure that they are ready to look for funding opportunities:

  • No matter how big your business is, it’s always a good idea to have your credit statements and tax returns on hand. This is crucial since unorganized financial documents could make obtaining loans through official channels harder for your business.
  • Enhance your credit behavior generally and apply discipline to the loan-taking and repayment practices of the business you run. Your company can aim to have a CIBIL Rank below six and then work methodically towards improving it to between one and four. A healthy profile will be reflected in this rank, which will provide official credit at a discounted rate.  
  • Your business should have a cautious approach towards spending money and saving funds. It’s important to have a contingency reserve in the business plan that will enable you to get help when you need it. Along with keeping an eye on government initiatives, you should figure out which financing opportunities will benefit your business the most economically.
  • It is your responsibility as an MSME owner to make sure that your CIBIL Company Credit Report is free of past due amounts or delinquencies. If there are any differences, you need to get in touch with your lender. If there is a disagreement with any of the information in your report, you can also get in touch with TransUnion CIBIL. The disagreement will be addressed with the relevant bank or financial institution, depending on its nature. note that CIBIL can only make changes to your company credit report once the lending institutions submit the updated data.


In short, the availability of cost-effective and faster credit has always been a key enabler for the MSME sector to achieve its business goals and development plans. By taking a disciplined approach to credit building and monitoring, your business/organization can always be loan-ready. As an MSME owner, you must keep a strong company credit record and prepare for quicker financing access in order to continue the growth story.

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