When Does a Credit Score Update & How Tally Helps MSMEs and CA Firms Get Loans – Complete Guide

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In today’s digital economy, a credit score plays a critical role in determining the financial strength and credibility of individuals, MSMEs, and even professional firms like Chartered Accountants (CAs). Whether you are applying for a business loan, working capital limit, equipment finance, or a personal credit line, your credit score significantly affects approval, interest rates, and loan amount.

At the same time, Tally Prime has emerged as one of the most powerful tools that help MSMEs and CA firms maintain accurate financial records, strengthen creditworthiness, and secure faster loan approvals. This article explains when a credit score gets updated, and how Tally helps businesses improve their chances of getting a loan.

1. What Is a Credit Score?

A credit score is a 3-digit rating (generally between 300–900) that indicates your creditworthiness.
A higher score means:

• Better loan approval chances
• Lower interest rates
• Higher credit limits
• Faster processing

A lower score indicates risk, which may result in loan rejection or higher interest rates.

2. When Does a Credit Score Update?

Credit scores are updated by India’s major credit bureaus such as CIBIL, Experian, CRIF Highmark, and Equifax.

✅ Credit scores are updated every 30 days.

Banks and NBFCs regularly send your financial activity to credit bureaus, including:

• Loan EMI payments
• Credit card bill payments
• Missed or delayed payments
• New loan applications
• Credit card utilisation
• Loan closures

When exactly does your score change?

Your score will update when:

1. You make EMI or credit card payments
   – On-time payments → score improves
   – Late or missed payments → score drops
2. You close a loan
   – Score rises after final closure is reported
3. Your credit utilisation changes
   – High utilisation → score decreases
   – Low utilisation → score improves
4. A lender reports your updated information
   – This usually happens once every month

How long does it take to reflect?

• Most updates appear within 7–15 days after your payment cycle
• Full score refresh happens every 30 days

Keeping consistent financial discipline is the key to maintaining a high credit score.

3. How Tally Helps MSMEs Get Loans Easily

Tally Prime does not directly offer loans, but it plays a very important role in helping MSMEs qualify for them. Lenders depend heavily on accurate financial reporting, stable cash flow, and tax compliance — all of which Tally delivers with ease.

Here’s how Tally helps MSMEs become more loan-ready:

A. Bank-Ready Financial Reports in One Click

Banks ask for:

• Profit & Loss Statement
• Balance Sheet
• Sales & Purchase Summary
• Cash Flow Statement
• Debtors & Creditors List
• GST Returns

Tally generates all these instantly in clean formats preferred by lenders.

Accurate reporting = higher loan approval probability.

B. Strengthens the Business's Financial Discipline

Using Tally Prime improves:

• Consistency in bookkeeping
• GST accuracy
• Payment tracking
• Expense control
• Cash flow management

A disciplined financial history increases business creditworthiness.

C. Helps MSMEs Qualify for Digital Lending

Many fintech lenders accept Tally reports for:

• Instant business loans
• Short-term working capital loans
• Invoice-based financing
• Cash flow loans

Because the data is clean and verifiable, approval becomes faster.

D. Reduces Errors, Mismatches & Compliance Risks

Tally ensures:

• No missing invoices
• No inaccurate GST returns
• No errors in statements
• Proper audit trails

Lenders trust businesses with consistent financial compliance.

4. How Tally Supports CA Firms in Getting Loans

CA firms also require loans for:

• Office expansion
• Staff recruitment
• Technology upgrades
• Professional development

Tally helps CA professionals in multiple ways:

A. Professional Reports for Loan Approval

CAs can generate:

• Income & Expenditure Reports
• Capital Accounts
• Receivable/Payable Statements
• Projected Financials
• IT & GST summaries

These reports support strong loan applications.

B. Better Visibility of Firm Performance

Using Tally Prime, CAs can track:

• Revenue growth
• Client receivables
• Operating expenses
• Cash flow

This gives banks confidence in the firm’s stability.

C. Advisory Services for Clients

CAs can analyse client Tally data to advise:

• Loan eligibility
• Repayment capacity
• Compliance status
• Business performance indicators

This strengthens client relationships and boosts loan approval rates.

5. Best Practices to Improve Loan Approval Chances (For All Tally Users)

To enhance your credit score and loan eligibility:

✔ Pay EMIs & credit card bills on time

✔ Keep credit utilisation below 30%

✔ File GST returns regularly using Tally

✔ Maintain up-to-date financial records

✔ Reduce overdue receivables

✔ Avoid too many loan applications at once

Combined with Tally’s accurate reporting, these practices build a strong financial profile.

6. Conclusion

A credit score updates every 30 days, and reflects your financial discipline, repayment behaviour, and credit utilisation. Maintaining a healthy score is essential for MSMEs, CA firms, and professionals wanting to secure loans.

Tally Prime acts as a powerful financial partner, helping businesses maintain clean bookkeeping, flawless compliance, and bank-ready documentation — all of which improve loan approval chances significantly.

With organised financials, transparent reports, and consistent data, lenders trust businesses more, making Tally an essential tool for entrepreneurs and CA professionals seeking financial growth.

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