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Ratings To Help MSME Sector In Raising Fund: CRISIL

Tags: Crisil
Director CRISIL SME Rating, Salil Chaturvedi has said that credit ratings would help micro small and medium industries (MSMEs) to get access to bank finance, which had been a perennial problem for these units, reports media.

New Delhi: "Ratings are crucial for the largely unorganised MSME sector to get access to bank finance which they were not able to," Salil Chaturvedi, director CRISIL SME Rating, said.Banks shy away from providing funds to the MSMEs as they not able to furnish proper documentation to them, he said at an interaction organised by Merchants' Chamber in Kolkata on Friday.He said that the government through National Small Industries Corporation (NSIC) had devised a subsidy scheme which could be utilised by the SSI registered units only for getting a rating.A company would have to bear 25 percent of the cost while NSIC would subsidise the balance 75 percent for getting a rating for the first time.He said a rated company would get proper treatment from the banks and also concessional interest rates for which CRISIL had tied up with more than 45 such institutions.