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MSMEs to help get funds faster from financial institutions

Posted in January 2012

Staff Reporter
Shillong, Jan 31:
Meghalaya Chief Secretary W M S Pariat impressed upon the credit-rating officials to go all out in creating awareness of the benefits of getting their firms credit rated.
"Credit ratings gives reviews of basic economics of institutions where credit worthiness of such business enterprises is assessed," Pariat said while addressing an awareness programme on performance and credit rating and its benefits to MSMEs and Small and Medium Enterprises (SMEs).
He said, "This is extremely good weapon and tool which can be utilized by enterprises which requires help from financial institution." "We need to motivate the people, to show them benefit accrue when they credit rated their enterprises," he added.
To obtain faster and concessional credit from banks, Credit rating experts Tuesday pressed for MSMEs in the North East for their companies.
It is an accepted fact that a good rating helps SMEs in obtaining faster and concessional credit from banks. As such credit rating helps for the capital provisioning requirement for SMEs.
According to Sanjit Raaj Choudhury, ONICRA Regional Manager of East and NE, "A good rating helps SMEs in obtaining faster and concessional credit from banks. As such credit rating helps for the capital provisioning requirement for SMEs."
Interestingly SMEs are always irked by the fact that banks and financial institutions are not forthcoming in giving loans to them.
"These ratings enable the lender or service provider to make smart, value-based decisions on the individuals, companies and MSMEs by arming them with a plethora of essential information on financial, operational, productivity analysis of the entity," he said.
The Credit Rating of SMEs has met with success, and the ratings now hold significant clout in the operations of banks.
The market expert said credit rating market is increasing at a higher speed with the banks insisting that their SME borrowers, with a good credit exposure, get rated. ONICRA has been present in the Indian Credit Rating space since mid’2000 and claimed to have rated around 8000 SMEs since inception in 2005.
Looking at the growing market space of SME sector in India, Onicra ventured into the space to help the SSIs get themselves rated and hence obtain an easy loan from the banks. Onicra acts as the fountainhead of information exchange and solutions to enable its customers to manage financial risk and build successful lasting individual relationship.
ONICRA though said they are yet to make their presence felt in the North East. Choudhury said, "Operations in the NE began three years back but it was only in September last year where 24 units was rated." What followed was optimistic, he said, adding that they rated 23 units in October, 44 units in November and 60 units in December in the whole North East.


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