SIDBI, ONICRA signs MoU for timely credit flow to MSMEs
Hotline: 1800 102 2007
X
Search Business Opportunities
2013-06-12

SIDBI, ONICRA signs MoU for timely credit flow to MSMEs

Small Industries Development Bank of India (SIDBI), has executed Memorandum of Understanding (MoU) with ONICRA Credit Rating Agency of India Limited (ONICRA) to provide ‘Loan Syndication Services’ (LSS) for facilitating flow of timely and adequate credit

Small Industries Development Bank of India (SIDBI), has executed Memorandum of Understanding (MoU) with ONICRA Credit Rating Agency of India Limited (ONICRA)  to provide ‘Loan Syndication Services’ (LSS) for facilitating flow of timely and adequate credit to the MSMEs. The MoU was signed on May 30, 2013.

According to the press release issued by SIDBI, under LSS, the bank has put in place a suitable ecosystem in partnership with banks, rating agencies and accredited consultants. The bank has entered into MoU with seven leading public sectors banks including Bank of India, IDBI, Central Bank of India, Indian Overseas bank, State Bank of Bikaner & Jaipur, Dena Bank and United Bank of India and with six RBI approved credit rating agencies including SMERA, CARE, ICRA, CRISIL, FITCH and BrickWork Ratings.

Third party credit rating and assessment helps to create “trust” between players in financial markets that underpins transactions and trading. ONICRA plays a central and critical role in analyzing, assessing and rating various entities to enable transactions, the release said.

In India, more than 90% of the MSMEs are constituted as partnership/ proprietorship concerns, where investment in pure equity form is difficult. Further, SIDBI also understands that most of MSME businesses in India are family owned with value built over generations. Due to these reasons, Indian MSMEs find it difficult to dilute large part of ownership and control in favour of an external entity. Looking to this, SIDBI, based on best global practices, has come out with various innovative financial instruments for MSMEs of different sizes and constitutions which are treated as quasi-equity by SIDBI, the release further added.

It also said that subordinated capital is a highly popular instrument among MSMEs globally, with minimal equity complexities and simpler documentation and hence quick to deliver and less costly for MSMEs. It is provided on the strength of business, backing of cash flows rather than asset cover and collateral security.

Related opportunities
  • Career Counselling & Brain Programming
    About Us: Allegiance Educare is an ISO Certified Career Counseling Company started..
    Locations looking for expansion Maharashtra
    Establishment year 2014
    Franchising Launch Date 2016
    Investment size Rs. 10000 - 50 K
    Space required 100
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Mumbai City Maharashtra
  • About Us:  Founded by Mrs. Preeti Bhandary and Mr. Vittal Bhandary Led..
    Locations looking for expansion Karnataka
    Establishment year 2004
    Franchising Launch Date 2008
    Investment size Rs. 10lac - 20lac
    Space required 2500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Bangalore Karnataka
  • Ice creams & Yogurt Parlors
    About Us: Gelato Italiano is one of the pioneer brands of..
    Locations looking for expansion Maharashtra
    Establishment year 2000
    Franchising Launch Date 2017
    Investment size Rs. 5lac - 10lac
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Mumbai City Maharashtra
  • Kids/Candy Stores
    JOIN INDIA’S 1st ZERO ROYALTY FRANCHISE MODEL - Khilonewala Toy Library! About..
    Locations looking for expansion Madhya Pradesh
    Establishment year 2011
    Franchising Launch Date 2013
    Investment size Rs. 2lac - 5lac
    Space required 200
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Indore Madhya Pradesh
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities

Free Advice - Ask Our Experts