FISME to facilitate MSMEs meet with World Bank on easy credit flow & credit information systems

Bangalore, Apr 12 (KNN) The Federation of Indian Micro and Small & Medium Enterprises (FISME) is organizing an interactive meeting here on April 19 between the MSMEs and the experts from World Bank to deliberate on how to facilitate Easy flow of credit to MSMEs.

During the meeting, the experts would deliberate on the robust credit information system and identifying gaps in present credit information systems.
 
The meeting is being 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.

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.

This would be the second such meeting being organized by the industry body. The first meeting was held in Faridabad in March. The meeting is being organized along with Federation of Karnataka Chambers of Commerce & Industry (FKCCI). (KNN Bureau)