Ratings to help micro small and medium industries in getting finance: Crisil

KOLKATA: 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, an official of Crisil SME Rating said.

"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 here today.

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 per cent of the cost while NSIC would subsidise the balance 75 per cent 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.

There were two to 2.5 crore MSME units in the country, most of which were unorganised.