How to raise online dispute for CIBIL MSME rank?
Do your business loan applications get rejected due to poor CIBIL Rank? In terms of getting a business loan approval, your Commercial CIBIL Report must be accurate and up-to-date. Any inaccuracies in the report can negatively impact your CIBIL MSME Rank, leading to loan rejections. In such a scenario, your first priority should be to rectify Commercial CIBIL Report and improve the CIBIL rank.
But the main concern is, what would be the rectification process? Don’t worry! In this article, we have explained the entire procedure step-by-step. So, let’s start the discussion with a basic understanding of Commercial CIBIL Report and CIBIL Rank.
What is Commercial CIBIL Report and CIBIL MSME Rank?
In simple words, Commercial CIBIL Report is a multi-dimensional and comprehensive credit summary of a company, specially designed by TransUnion CIBIL for MSMEs (Micro, Small, and Medium Enterprise) with current credit exposures of up to 50 Crores.
Typically, when a businessman takes credit facilities against their company, the respective lenders regularly report those loan accounts and their repayment history to TransUnion CIBIL. This consolidated credit summary is referred to as a Commercial CIBIL Report or Company CIBIL Report (CCR).
Based on the company’s loan repayment and credit management behaviour, TransUnion CIBIL assigns a CIBIL MSME Rank (CMR). This is a numerical representation of the MSMEs’ creditworthiness, rated on a scale of 1 to 10, where CMR -1 is the best rank that can be achieved.
In short, CIBIL MSME Rank is the most relied parameter access by the bank managers to evaluate and approve a loan application.
Common types of error in Commercial CIBIL Report (CCR):
As we discussed earlier, a company’s CIBIL MSME Rank (CMR) is calculated based on loan repayment records submitted by lending institutions. Generally, a CMR is affected due to the borrower’s fault. But, what if your CIBIL Rank is impacted by errors or inaccuracies in your company credit report?
In such cases, it is essential to identify these issues immediately and take prompt action to rectify them. Before starting the rectification process, you must know about the common types of errors in a CCR and the appropriate approach to solve them.
Data mixing error in CCR:
This is one of the most common errors in a Commercial CIBIL Report (CCR) that can create big trouble in your financial emergencies. As a responsible business owner, you always pay your loan EMIs on time and manage your working capital loans wisely. However, recently you applied for a new credit facility or renewal of credit lines, but the application gets rejected. From the bank manager, you came to know that some unknown default credit facility is reported in your company CIBIL report, which is the main reason for loan rejection. It can be even more distressing in your financial emergencies, right?
Actually, such data missing occurs when your company details, such as Name, and location are quite similar to the other company. Due to such similarities, both companies’ credit details are overlapped. As a consequence, you may notice, multiple PAN numbers, misspelled company name, unknown credit facilities, loan inquiries, and unknown contact details are mentioned in your Commercial CIBIL Report.
In this scenario, raise your concern to CIBIL authorities, and remove all the incorrect information from your Commercial CIBIL report immediately. After rectification, your CIBIL rank will be restored as previous.
Duplicate Credit Facilities:
In some cases, you may notice that a credit facility is reported twice in your Commercial CIBIL report. Such multiple reporting increases the overall credit exposure and debt burden of your company. Obviously, it’s an error and impacts your CMR rating negatively. So, remove such duplicate credit lines and make your CCR error-free.
Inaccurate loan outstanding:
Did you know, your CMR rank can be hampered even after regular payments? This happens only because of negligence of the credit institute, when they do not update your loan repayments properly in your CCR.
Typically, all the credit institutes submit their borrower’s payment details once in a month. When you serve your loan interest or close a credit facility, then it takes 30-45 days to reflect the information in your Commercial CIBIL report.
Now, if you notice that your loan account hasn’t been updated for 3 to 4 months, or if there is an incorrect outstanding balance in a closed account, then rectify them immediately. Otherwise, such inaccurate outstanding balances increase your credit utilization and impact your CMR rating severely.
Incorrect delay-payments:
In general, when a borrower misses the loan’s due date or pays in delay, lenders report such delayed payments as DPD (Days Past Due) in the borrower’s credit report. In case of CMR rating, a single reported “DPD/SMA/SUB/LSS” remark can cause severe damage on rank.
Typically you can’t remove any genuine delay payments from your credit report. Now, if you notice incorrect late payments are reported in your CCR due to the lender’s mistake, then rectify them immediately. Try to attach your loan account statement as a proof.
Inaccurate Credit Facility Status:
Few negative credit facility statuses, such as overdue, written-off, suit filed, wilful default, and settled impact on CMR rank significantly. In generally, lenders report such remarks on a loan account when the borrower fails to meet their repayment obligations.
If you notice any such negative remarks on your existing credit lines despite paying the entire outstanding amount, then it is crucial to remove them from your Commercial CIBIL Report immediately.
The process to rectify Commercial CIBIL Report:
- Check your Commercial CIBIL Report and identify the errors:
To initiate a complaint in CIBIL, first, you require a complete Commercial Credit Report against your company along with a report order number. In this regard, you can purchase your CCR from TransUnion CIBIL’s official website with their different subscription plans or you can arrange a copy of CCR from the lending institutions.
After getting your Commercial CIBIL Report, check it thoroughly and identify the errors. Now, follow the steps to raise your concern to CIBIL authorities:
- Raise online dispute for CIBIL MSME RANK:
- First, visit the TransUnion CIBIL official website www.cibil.com. On the home page, you will get an option of “Consumer Grievance” as highlighted in the picture below. Now, click on it.
2. Under this section, you will see many options are mentioned there. To raise an online dispute in Commercial CIBIL, choose the option “Company Dispute Resolution” as marked in the picture
3. The Company Dispute Resolution page will open to you. Read all the information carefully to get an idea about the entire dispute resolution process for commercial consumers. On the same page, you will get the option “RAISE AN ONLINE DISPUTE” as highlighted in the picture. Click on the button to proceed further.
4. On the next page, you will get a simple form, where you have to put your email id and Service Request Number of your previous complaint. As you are going to complain for the first time, that’s why click on the “New Application”.
5. Then you will reach to the actual dispute form as shown in the picture below. You have to fill the form along with your company details, like Company Name, Legal constitution, registered address, contact details, Company PAN Card Number, etc. Also mention the Report Order Number, which you can find at the top right corner of your commercial CIBIL report. By the report Order Number, CIBIL customer care will retrieve your CCR from their end, that’s why it is mandated to mention in the commercial CIBIL dispute form.
6. Then describe your queries in 3000 characters. Actually, here you don’t have to describe your complaint elaborately. Mention the disputed details in a concise format.
TransUnion CIBIL has already given a format as shown in the picture below.
Dispute on Company information:
Mention the disputed details related to your company, like Name, address, Company email id, Phone Number, Related Parties, and Company Identification details (PAN Number, GST Number, CIN Number, etc).
Dispute on Account Info:
Mention the disputed details related to your existing loan account, like outstanding balance, DPDs, Overdue, account status, etc.
Ownership Dispute:
Mention those credit facilities, which does not belong to your company.
5. Then attach the relevant documents that support your claim. It can be your company’s KYC details, any kind of payment proof, etc. The documents should be in PNG, JPG, JPEG, or PDF format within 5MB. You can attach a maximum of 5 documents, and ensure all are not password protected.
8. As per the RBI’s new compensation framework, you have to provide your savings/ current account details to claim compensation in case of any delay in dispute resolution. Then select the term and condition and copy the capture mentioned in the image. Then click on the final submission. After successful submission, a Service Request Number will be generated as shown in the picture below.
- Send Email to the CIBIL higher authority:
Usually, TransUnion CIBIL takes 30 days to resolve the dispute. If you did not receive any response from the CIBIL authorities within the stipulated timeframe or you are not satisfied with their response, then raise your concern to CIBIL’s higher authorities by sending an email to their Nodal officer.
CIBIL Grievance Desk: [email protected]
CIBIL Nodal officer: [email protected]
- Send a complaint to the respective lender:
Simultaneously, send a complaint to the respective lender, who reported the dispute details in your commercial CIBIL. It will help you to resolve the issue faster than usual.
Tips to maintain a good CIBIL MSME Rank:
After rectification, you can also follow a few tips to maintain a healthy CIBIL MSME Rank. Such as
i. Be disciplined toward your existing credit lines.
ii. Optimise the working capital (CC/OD) usage, typically below 75%.
iii. Build a mixed credit portfolio
iv. Always, pay off your loan in full, never go for any kind of settlement.