The NSIC is set to provide credit rating to over 9000 MSMEs in 2010-2011
The NSIC or the National Small Industries Corporation is set to provide credit rating to over 9000 micro and small and medium enterprises (MSMEs) in 2010-2011.This was stated by H P kumar, chairman-cum-managing director, NSIC. He said that the issue of non availability of credit to the MSME sector is a problem and that to get finance from banks and finanacial institutions it is necessary to get credit rating from the agencies like the SME Rating Agency Of India SMERA,Credit Rating and Information Services of India limited CRISIL,FITCH, Indian Credit Rating Agency(ICRA),Dun and Bradstreet (Dial –up-networking or DUNS).They have decided to provide credit rating to over 9000 MSMEs in the year.
Due to the global slowdown, the firms did not go in for credit ratings in the year 2009-10. The revival of the economy will get units in the small enterprises to opt for the rating this fiscal, Kumar said.
He said that the availability of an independent evaluation of the strength and weaknesses of an MSME unit seeking credit, helps banks and financial institutions manage their credit risk.
The NSIC has a tie up with agencies like the SMERA and Dun and Bradstreet. The seventy five per cent of the rating fee is borne by the corporation and the companies have to pay the remainder.
SMERA, the first rating company that focuses primarily on the MSME segment has the objective to provide ratings that are comprehensive, transparent and reliable. A greater and easier flow of credit from the banking sector to the SMEs is what will be facilitated by this.
The rating of the company’s financial health as stated by Kumar is what helps them to get access to credit quicker and cheaper. It helps in enhancing their acceptability in the market.
The NSIC has been appointed as the nodal agency for implementation of a scheme that has been formulated in the year 2004-05 in consultation with Indian Banks Association and rating agencies.
He said that the units can choose any of the agencies with the NSIC.
Business Opportunities
Our Group Sites
Popular Cities
