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2009-11-03

Rating raises credit flows to small, micro units

Credit disbursement to micro and small enterprises (MSEs) has been increasing at a steady pace, as banks are more willing to lend to enterprises that have been evaluated on a standardised basis by ind

Rating raises credit flows to small, micro units

Credit disbursement to micro and small enterprises (MSEs) has been increasing at a steady pace, as banks are more willing to lend to enterprises that have been evaluated on a standardised basis by independent agencies.

 

According to the National Small Industries Corporation (NSIC), in the first half of the fiscal 2009, about 3,487 enterprises availed themselves of the scheme. For the whole of 2008-09 fiscal, 5,011 enterprises had got themselves rated.

 

The scheme helps MSEs in two ways – by establishing their credit worthiness to borrow at liberal terms and enhancing their ability to procure orders from foreign buyers. The rating scheme was launched in April, 2005.

 

 

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