Mumbai: TransUnion Cibil on Tuesday launched credit ranking for micro, small and medium enterprises (MSME) which have aggregated exposure between Rs10 lakh to Rs10 crore. Using machine learning algorithms, credit ranking will predict the probability of MSME becoming non performing asset (NPA) in span of next one year.
Ranking will be given to MSMEs on a scale of one to 10 on the basis of credit history of past 24 months. Higher ranking will imply higher credit risk.
MSMEs falling in the highest risk bracket have credit outstanding of Rs54,799 crore which is at risk of becoming bad loans. Currently the total MSME credit portfolio is estimated at Rs12 trillion.