Mumbai: MSMEs with a good CIBIL MSME Rank (CMR) can now avail a lower rate of interest on loans from Oriental Bank of Commerce.
CMR uses machine learning algorithms to predict the probability of an MSME becoming NPA in the next 12 months. It provides a ranking to the MSME based on its credit history data on a scale of 1 to 10, CMR1 being the least risky MSME and CMR10 being the most risky MSME.
The higher the CMR, the higher is the risk of NPA associated with the MSME.
Oriental Bank of Commerce will offer up to 0.25 percent concession on interest rates to MSMEs with CMR1 to CMR3 and internal risk rating of OBC1 to OBC3.
“Oriental Bank of Commerce is committed to driving access to finance for MSMEs while ensuring profitable growth of credit portfolios. By offering a lower rate of interest to our MSME customers who have a good credit history and CMR, we are rewarding good borrowers and promoting a disciplined credit culture along with ensuring healthy quality of our MSME portfolio,” said Mukesh Kumar Jain, Managing Director & Chief Executive Officer, Oriental Bank of Commerce.
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