Page 50 - MSME BULLETIN 2022 NEW LAYOUT 19082022.indd

MSME & START-UP BULLETIN, VOLUME 1, ISSUE 1, AUGUST 2022

scheme of performance and credit rating for (v) Good rating enhances the acceptability of the
micro & small enterprises through its various MSEs with their customers and buyers.
branches/offi ces located in the country.
(vi) Facilitate buyers in capability and capacity
(ii) The unit’s rating is a combination of its assessment of MSEs before fi nalizing purchase
performance and credit worthiness. The MSEs contracts.
rating methodology covers a combination
of credit and performance factors including (vii) An independent evaluation of the strengths and
parameters measuring operational, fi nancial, weaknesses of the applicant unit will help banks
business and management risks. and fi nancial institutions in taking faster credit
decisions and leveraging thelr risks.
(ii) NSIC is maintaining a database about the units
awarded rating by different rating agencies. More than 30 banks / fi nancial institutions have
signed MOU with the the rating agencies / NSIC to
(iv) Micro & small enterprises are at liberty to select extend the benefi ts to the units rated under the Scheme.
any of the rating agencies empaneled under the
rating scheme with NSIC. Interventions
Though RBI had advised all banks to consider ratings
(v) The rating process is being undertaken In the assigned under the Scheme as per availability and
following manner: wherever appropriate, structure their rates of interest
depending on the ratings assigned to the borrowing,
a) Request for rating from MSE. SME Units and banks should give due recognition to
the ratings while considering the loan proposals of
b) Collection of information from the MSE. micro & small enterprises so as to extend the benefi ts
to the good rated units.
c) Onsite meeting with MSE management.
d) Analysis of information obtained from the Implementation Strategy
MSE. To propagate the Scheme and create wider awareness
among micro& small enterprises in the country, NSIC
e) Assign rating. in association with local industry associations and banks
organize focused campaigns and seminars highlighting
(vi) The validity of a rating is for a period of one year the benefi ts accruing to MSEs under the Scheme, so
from the date of issue of the rating letter. that they can get themselves rated under the scheme.
Target Group Procedure for Availing of Financial
Micro & Small Enterprises Assistance Under the Scheme
The following procedure is adopted for availing
Benefi ts fi nancial assistance under the Scheme:
The major benefi ts accruing under the Scheme fo the
rated units include: (i) Micro &small enterprise is at liberty to select
any of the rating agencies empanelled under the
(i) Rating is an independent, trusted third party rating scheme with NSIC.
opinion on capabilities and credit worthiness of
MSEs. (ii) MSE can apply directly to the rating agency
(selected by It) or through any branch of NSIC,
(ii) Rating enables MSE units to ascertain the clearly indicating the name of the rating agency
strengths and weaknesses of their existing from whom they want to get rated.
operations and take corrective measures to
enhance their organizational strength. (iii) The rating agencies have different fee structure
for their rating of various clients including micro
(iii) Good rating enables MSEs to access funds at & small enterprises. The Rating Agencies have
cheaper rates and on better terms, devised their fee structure for MSEs under this
Scheme separately.
(iv) Rating facilitates prompter credit decisions from
banks on proposals of MSEs. (iv) As the evaluation criteria for award of rating

50 The Institute of Cost Accountants of India