Faridabad, Mar 22 (KNN) The Federation of Indian Micro and Small & Medium Enterprises (FISME) organized an interactive meeting of the MSMEs with the experts from World Bank to deliberate 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 meeting was organized keeping in view the growing importance of credit information in today’s global business operations and about the functioning of the credit information bureaus, particularly, Credit Information Bureau of India Limited (CIBIL).
 
A good or bad CIBIL score often makes or breaks loan application, particularly personal loan applications.
 
“In India, credit information is not given much importance by the banks for business loans. However, in developed economies, it is an important tool for sourcing credit and also plays an important role in deciding the rate of interest,” FISME said in a press note.
 
For that, the credit information bureaus there in developing countries  are compiling a lot of information - even how regular one is in paying their electricity or water bills, mobile bills or trade credits. All this help them to ascertain the level of credit worthiness of the borrower, it added.
 
“The meeting was organized to ensure easy flow of credit to MSMEs at a competitive rate; identifying the gaps in the present credit information systems; and to create a wider information base for credit status,” FISME said.
 
After the meeting, Satish Mehta, Co-Founder & Director, Athena Partners, and lead faculty at the programme  said, “MSMEs showed lots of interest in knowing about the credit rating agencies and their way of working.”
 
He said the laws are not “unfriendly” and it’s just a process of change which people have to get used to.
 
“I can see in last 10 years, people are recognising the value of positive credit information,” Mehta added. (KNN Bureau)