SMERA in talks with banks for rating their clients

The Small and Medium Enterprises Rating Agency (SMERA), which was launched here a month ago, is holding talks with other banks for rating their SME clients.

Talking to mediapersons, Rajesh Dubey, chief executive officer of SMERA, said that the rating agency recently signed an MoU with the State Bank of India for rating its SME clients. Some other banks have also initiated the process of getting internal approvals for reducing the rate of interest for SME clients rated by SMERA, he said.

SMERA is the country's only agency focused on rating SME units to enable them to seek credit at attractive terms. SMERA's rating would help SMEs in securing credit facilities from banks at lower rates with less collateral security.

Dubey said, "SMEs have evinced keen interest in having their industries rated by SMERA. We have received around 180 applications from units from various parts of the country. The rating process would be completed in 15 days. SMERA has come out with an inaugural offer of Rs 7,500 plus taxes as fee for rating an SME." This offer would be valid up to October 31, Dubey added.

SMERA has approached the union government seeking subsidy for meeting the rating expenses stating that an SME with good rating should be able to get credit at lower interest. Dubey said that Sidbi would consider reduction of interest on credit facilities.

The agency would have an equity base of Rs 10 crore of which banks such as Bank of India, Citibank, Standard Chartered, Sidbi and Credit Information Bureau of India Limited (CIBIL) would have a holding of 39 per cent, according to Dubey.

The agency would rate any individual or company engaged in any field like manufacturing, trading, business and commerce but not the non banking finance corporations (NBFCs), chit funds and 'nidhis'.