Bengaluru, Apr 21 (KNN) Access to finance is critical to businesses worldwide and the MSMEs of India are no different. Lack of access to finance and timely credit as well as escalating cost are cited as primary reasons for under-utilisation of the manufacturing capabilities of SMEs.

To address this issue World Bank has come forward to interact with the Indian MSMEs on how to facilitate Easy flow of credit to MSMEs through a robust credit information system and identifying gaps in present credit information systems.

The World Bank Group joined hands with Federation of Indian Micro and Small & Medium Enterprises (FISME) to organise a 5 city campaign wherein experts from WBG would talk the growing importance of credit information in today’s global business operations and about the functioning of the credit information bureaus operating in India.

After the success of the first programme in Faridabad, FISME in association with Federation of Karnataka Chambers of Commerce & Industry (FKCCI) organised the second programme in Bengaluru on 19th April 2016 at their secretariat.

Tallam R. Dwarakanath, President, FKCCI in his anaugural address referred  to the developed economies and said overseas credit information  is not only an important tool for sourcing credit but also plays an important role in deciding the rate of interest. He further urged the participants to maintain a good credit score for easy processing of their loan applications.

Later Anil Kumar and Ashutosh Tandon representing the World Bank Group made a detailed presentation on the credit information system and the functioning of the credit information bureaus, particularly the Credit Information Bureau of India Limited (CIBIL).

With the help of examples and case studies the presenter explained the participants how the credit information system works and how a loan is approved or rejected based on the reports and scores generated by these Credit Bureaus.

Participants poured in with their experiences pertaining to their credit ratings scores which were very aptly addressed by the presenters and Ms. Sangeeta Shankar representing CIBIL.

Other dignitaries who were present for the session included S. Sampathraman, Immediate Past President, FKCCI,  K. Ravi, Vice President, FKCCI, C R Janardhan, Chairman of Industries Committee, FKCCI and N. Pathasarathi, Secretary General, FKCCI.

The proceeding of the meeting was moderated by Mukesh Kalra, Joint Secretary (international Trade), FISME.

In his concluding remarks, M C Dinesh, Sr. Vice President, FKCCI expressed his gratitude towards FISME and the World Bank Group for organising such a programme and extended the support of FKCCI for more such initiatives in the future. (KNN Bureau)