IIA inks pact with CRISIL to ease credit rating among MSMEs

Lucknow, June 11 (KNN) In order to facilitate credit rating among the Micro, Small and Medium Enterprises(MSMEs), Indian Industries Association (IIA) has signed the a Memorandum of Understanding (MoU)  with the CRISIL rating agency in Lucknow.

IIA President Manish Goel said that access to formal credit (from financial institutions such as banks) and lack of credibility have been obstacles for long for MSMEs across India. One way to overcome these drawbacks has been by getting a credit rating. The MOU signed between IIA and CRISIL will facilitate MSMEs to get credit rating easily and cost effectively.

On the other hand,  Salil Chaturvedi, Director- CRISIL informed that Government of India offers subsidy tothe MSME units for getting rated under the Performance & Credit Rating Scheme (PCRS).PCRS is administered by the National Small Industries Corporation (NSIC) under the aegis of Ministry of MSME, Government of India.

The Union Budget for fiscal 2016-17 has significantly increased support to the PCRS scheme by more than 600% to Rs 200 crore -- compared with Rs 28 crore in fiscal 2015-16.

Manish Goel, President, IIA further said, “PCRS is a great scheme from the Union government. I appeal to all MSMEs in UP to get themselves credit rated. The benefits of this are multifold – you get loans at lower interest rates, you gain credibility in business, and ultimately, you get a chance to scale up. Credit rating is the first step to all of that.” (KNN Bureau)