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Difference Between: Commercial CIBIL And Consumer CIBIL

Published on Nov 7, 2023Updated on Nov 8, 2023

Difference Between: Commercial CIBIL And Consumer CIBIL

What if you could see how lenders assess your creditworthiness or understand the factors influencing your credit score? This is where commercial CIBIL and consumer CIBIL reports come in.

Commercial CIBIL and Consumer CIBIL reports are credit reports that assess the creditworthiness of businesses and individuals, respectively. They are generated by CIBIL (Credit Information Bureau (India) Limited), a credit bureau that collects and maintains credit information on individuals and businesses.

Lending institutions use Commercial CIBIL and Consumer CIBIL reports to make loan decisions, determine interest rates, and assess the risk of doing business with a particular individual or company.

In this article, we will study the factors that distinguish Commercial CIBIL and Consumer CIBIL reports and how they can impact your financial future.

What is Consumer CIBIL Score?

A Consumer CIBIL score, also known as a Credit Information Report (CIR) or simply a credit score, is a numerical value indicative of an individual's creditworthiness. It is calculated based on the individual's credit history, including credit accounts, repayment history, outstanding debts, and other relevant financial factors.

Consumer CIBIL scores in India are typically provided by credit bureaus such as TransUnion CIBIL. These scores can range from 300 to 900, with a higher score indicating better creditworthiness. Lenders and financial institutions use these scores to determine the risk of lending money to an individual.

Lending institutions generally prefer higher credit scores as it increases the chances of being approved for loans, credit cards, or other financial products. A high CIBIL score indicates financial stability, good income, and low risks so that lenders may offer more favourable terms and interest rates.

What is a Commercial CIBIL Report?

Unlike Consumer CIBIL scores that focus on the individual, a Commercial CIBIL report emphasises the creditworthiness and financial history of a business or commercial entity.

Commercial CIBIL reports are typically used by lending institutions when evaluating the credit risk associated with extending credit or entering into financial transactions with a business.

The Commercial CIBIL report contains information about the business's credit history, such as loan and credit card repayment history, financial stability, credit utilisation, industry age, etc.

Unlike the Consumer CIBIL score, a Commercial CIBIL report will rank a business’s creditworthiness between 1 and 10. 1 is the highest rank, while 10 is towards the lowest end of the spectrum.

Key Differences Between Consumer CIBIL and Commercial CIBIL Report

Category

Consumer CIBIL Report

Commercial CIBIL Report

Entity

Individual

Enterprises

Credit Scoring Model

Consumer CIBIL score

Commercial CIBIL rank

Scoring Range

300-900

1 to 10

Purpose

To evaluate the creditworthiness of individuals.

To evaluate the creditworthiness of businesses.

Information Included

Loan and credit card repayment history, credit utilisation, and number of inquiries.

Loan and credit card repayment history, financial stability, and credit utilisation.

Report Type

CIBIL credit report

Commercial CIBIL report

Factors Influencing

Payment history, credit utilisation, credit mix, length of credit history, and new credit.

Corporate history, payment history, debt utilisation rate,

And fiscal stability.

Must Read: How to Increase CIBIL Score from 500 to 750?

Features of Consumer CIBIL

A Consumer CIBIL report primarily involves evaluating an individual's creditworthiness and repayment capacity. Its key features include:

  1. Personal information, such as your KYC details, lender information, credit arrangements associated with you, contact details, length of credit history, etc.
  2. Account details include the lender's name, account numbers, types of accounts, ownership status, account opening and closing dates, loan amounts, last payment date, current outstanding balances, etc.
  3. Current status of the account, including settlement, write-offs, days overdue, and more.
  4. Inquiry data, such as the number of credit inquiries (soft and hard) within a specific timeframe and your credit behaviour.

    However, the format of these reports may vary with time. Therefore, checking for updates on the official CIBIL website is essential.

However, the format of these reports may vary with time. Therefore, checking for updates on the official CIBIL website is essential.

Features of Commercial CIBIL Report

A Commercial CIBIL report is a document that provides lenders with a holistic view of your organisation's financial standing and creditworthiness. It includes the following information:

1. Identification Details

This includes your Report Order Number, which indicates how frequently you've accessed your report from CIBIL's database.

2. Inquiry Records

This section includes the company name, address, and identification code of entities inquiring about your organisation.

3. Borrower's Profile

It contains vital organisation details, including its name, primary business activities, legal structure, contact information, company PAN, registration number, and any reported instances of delinquency.

4. CIBIL Rating

A CIBIL Rank that ranges from 1 to 10 is provided to offer a snapshot of your creditworthiness.

5. Recent Inquiry Summary

This part summarizes recent inquiries made about your organisation.

6. Adverse Credit Details

Here, you'll find information regarding overdue payments, outstanding debts, defaults, dishonored cheques, and other harmful credit-related data.

7. Geographic Information

It includes specific location details relevant to your enterprise/company/organisation.

8. Information on Related Parties, Individuals, and Entities

This segment provides insights into associated individuals and entities.

9. Credit Facility Particulars

This is a comprehensive view of credit facilities for both the borrower and guarantor, including payment status, overdue amounts, etc.

How to Check Consumer CIBIL

You can check the CIBIL score via both online and offline means. Here are the steps that must be taken for the online mode:

  • Go to the authorized CIBIL website.
  • Opt for the 'Obtain your CIBIL score' option.
  • Provide basic information such as your name, email address, contact number, date of birth, PIN code, etc.
  • Attach your identity proof (Aadhar card, PAN card, driving licence, etc.).
  • Proceed by clicking 'Accept and Continue.'
  • Navigate to the dashboard to view your credit score.
  • Access the CIBIL consumer login.
  • Enter your login credentials to access your consumer CIBIL score.
Must Read: How to Check CIBIL Score Online & Get Report?

How to Check Commercial CIBIL

Checking the Commercial CIBIL rank is a simple process and involves the following steps:

  • Access the official CIBIL website by visiting cibil.com/online/Company-credit-report.do
  • Complete the online application form by providing your company's legal structure, registered
  • address, contact information, PAN details, and more.
  • Feed in your commercial CIBIL login credentials.
  • Choose a payment method to submit the required fee (depending on the subscription plan).
  • Upon payment, you will receive your registration and transaction ID via email.
  • Upload your KYC documents to obtain your commercial CIBIL report and the ranking.

Conclusion

For consumers, credit is about securing personal dreams, while it's a vital means of growth for businesses. So, whether you're an individual or an entrepreneur, understanding the nuances of Commercial and Consumer CIBIL is your roadmap to financial success.

* Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG India Credit's policy at the time of loan application. If you wish to know more about our products and services, please contact us

FAQs

What is a good Commercial CIBIL score?

An excellent Commercial CIBIL score is denoted as any number between 1 and 10, where a score/rank closer to 1 is considered highly favourable for the company.

What are Commercial CIBIL charges?

The charges for acquiring a Commercial CIBIL report (Company CIBIL Report) vary depending on your subscription plan. It is available in plans:

  • Basic - For 1 month - INR 3000
  • Standard - For 6 months - INR 6000
  • Premium - For 12 months - INR 12000

What is a good CIBIL score?

CIBIL scores typically range from 300-900. Scores upwards of 750 are considered good cibil scores.

What is the fee for Commercial CIBIL?

Depending on your subscription plan, a Commercial CIBIL report (Company Credit Report) can incur costs between INR 3000 and INR 12000.

How can I increase my Commercial CIBIL score?

You can improve your CIBIL score by adopting the following steps:

  • Having a reasonably long credit history.
  • Remember to clear any outstanding debts or payments in time.
  • Try keeping a low credit utilisation ratio to increase your creditworthiness.
  • Have a healthy balance between the company’s existing liabilities and assets.

What is the importance of Commercial Credit?

Commercial Credit serves as a means to support growth, secure inventory, and deal with unexpected contingencies. A favourable credit score can help businesses avail of loans and credit lines at affordable interest rates.

Who can access Commercial Credit Reports?

With the consent of the business/company, lenders, creditors, and insurers can access commercial credit reports. Companies can also acquire their Commercial Credit Reports from CIBIL.

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