The Credit Rating Information Services of India (CRISIL) is an Indian Consulting firm. It was the first Credit Rating Agency to be established in India in 1987. It provides research, rating, and policy and risk advisory services. Later on, it forged a business alliance with Standard & Poor (S&P) and became its subsidy. It helps investors to grant and businesses to receive SME loans for operational purposes.
Importance of the CRISIL SME Rating
The CRISIL Credit Assessment Score (CCAS) indicates the overall creditworthiness of business enterprises by analysis of their financial and operating strength. It is an eight-point scale ranging from lucrative to poor grading for stakeholders to gauge capabilities. CCAS 8 indicates the highest risk, whereas CCAS 1 indicates the lowest as per industry best practices.
CCSAS answers question about capability and creditworthiness through preliminary analysis, management interaction, rating committees, assigning ratings, and communicating results. A thorough evaluation of credit profiles and assessing transactional history, CRISIL sets scores against peer performances.
CRISIL uses simple alphanumeric symbols to convey credit ratings. The more trustworthy the score, the lesser business loan interest rates are applicable. CRISIL assigns credit ratings to debt obligations on three scales: the long-term scale, the short-term scale, and the fixed deposit scale.
Documents required for CRISIL rating
The agency will run background checks on your financial, management, and business practices and records. Therefore, make sure your profile is clear for a better score. A higher score ensures you get a business loan easily. Why? A clean business track record automatically enhances your overall business loan eligibility.
The lending institution will assess your profile based on the following documents:
- Residence proof of business and individual
- Photo identity proof- Driving License, PAN, Voter ID
- Age Proof
- Balance sheets of the past three years minimum
- Bank statements of the enterprise and individual for one year
- Details of the latest three years’ income tax return
How to apply for the CRISIL SME rating?
Here we list the step-by-step procedure of registering your business to avail a credit rating from CRISIL.
- Step 1: Visit the website and read through the offerings and solutions of CRISIL for SME here https://www.crisil.com/en/home/our-businesses/sme-offerings/sme-rating.html. You can additionally understand the rating process by going through this: crisil.com/content/dam/crisil/our-businesses/sme_ratings/rating-methodology/crisil-performance-rating-methodology-for-sme.pd
- Step 2: Register on ‘smefirst’ available on the website using your name, email address, telephone number, and association to the enterprise.
- Step 3: Upon successful verification and registration, you will need to enter specific details about your business. Fields of enterprise details, turnover, profits after tax, company and facility addresses, and PAN card details need to be filled. Click on submit after entering these details.
- Step 4: A representative from CRISIL will reach you either through telephone or mail. You will need to be active on both. The executive will expedite the process and ask relevant questions for clarifications.
If you haven’t yet, apply for a CRISIL SME rating report at the earliest. This is because your lender will want to go through your credit rating while assessing your business loan eligibility. However, your loan amount and interest rate will be determined based on varying terms.