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Importance of Credit Rating

It is an opinion formed by credit evaluators of a borrower’s potential to repay debt and trusting him in return

Tags: SMERA, Credit Rating

BY Entrepreneur  |  Apr 18, 2011 comments ( 10 ) |

Through Credit Rating, we estimate credit worthiness of an individual, corporation or a country. It is an opinion formed by credit evaluators of a borrower’s potential to repay debt. Every rating grade comes with its possibility of default, which in turn assists investor/lender to take informed investment decision. Various financial, non-financial parameters, past credit history and future outlook are determined before coming to a rating. There are various types of ratings viz. Issuer Rating/ Obligor Rating, Bank loan Rating, Issue based Rating, Project Rating etc. Based on type of borrower/issuer, Ratings can be classified as Individual Rating, Corporate Rating, Bank/Financial Institutions Rating, SME Rating, MFI Rating etc.


A rating procedure generally involves

  • Rating request
  • Submission of application, relevant documents and fees
  • Site visit and management interview
  • Rating assessment procedure
  • Rating committee, rating decision
  • Rating dissemination



SMERA is the country's first Rating agency primarily focusing on the Indian Micro, Small and Medium Enterprise (MSME) segment.


SMERA's primary objective is to provide Ratings that are comprehensive, transparent and reliable. This would facilitate greater and easier flow of credit from the banking sector to MSMEs.


1.   SMERA Credit Ratings provides a comprehensive and independent third-party evaluation of the overall condition of the applicant. Currently, SMERA offers Obligor Ratings which takes into account the financial and non-financial factors that have bearing on the credit worthiness of the applicant.


2.   At present, SMERA offers following products:

  • MSME Rating
  • Greenfield & Brownfield Grading
  • Microfinance Institutions (MFI) Rating
  • Green Rating
  • Risk Management  Solutions


3.    SMERA Rating’s intention is to enhance the market standing of the applicant amongst lenders, trading partners and prospective customers.

Please add your comment


August 24, 2011 at 11:18 pm

kindly send some more information to me

Reply |

vinay dosi

August 23, 2011 at 11:53 pm

Hi, I m interested in Credit Rating business, please provide me the details regarding investment and earnings.

Reply |

Ravi Chimnani

July 24, 2011 at 2:12 pm

Hi,I m interested in credit rating business.plz provide me the details

Reply |

Kalpesh Vichare

July 21, 2011 at 11:04 pm

Hello, I am interested in Credit rating business. Want to understand more details. Can you please send mail or contact on my number 9833418353.

Reply |

Dheeraj Mantry

July 21, 2011 at 4:46 am

Hi, I m interested in Credit Rating business, please provide me the details regarding investment and earnings.

Reply |


July 19, 2011 at 8:56 am

Dear Sir, I m interested in credit rating business. Plz provide the details

Reply |

Vikas nagar

July 18, 2011 at 4:57 am

Thanks you so much for enlightening us about this opportunity. Please pass on the details 9871508392

Reply |


June 28, 2011 at 2:10 am

Dear Sir, I m interested in credit rating business.Plz provide the details +91 9912194726, sastry_drsn@yahoo.com, casekharanchandra@gmail.com

Reply |

maulika joshi

June 25, 2011 at 6:01 am

Pls provide the details. I m interested in doing this.

Reply |

Anubhav Tiwari

June 24, 2011 at 2:47 pm

I'm interested in credit rating business .how should i start & what is the minimum earning opportunity month on month

Reply |

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