Credit rating for SMEs a must: CII

The Confederation of Indian Industry (CII) has organised a workshop on credit rating for the SMEs at Pantnagar amid concerns that growth in credit has not kept pace with the growth in industry.

An independent credit rating brings out intrinsic strengths of the SMEs by providing transparent and reliable "Enterprise Ratings," speakers at the workshop said.

"Though certain banks have signed memorandum of understandings (MOUs) with the credit rating agencies, the end benefits are not being passed onto the SME units," said Lovleen Mody, chairperson of the CII Uttaranchal.

"In today's competitive world, it is of utmost importance for the SME sector to enhance its status for competing with the large-scale units. The SME ratings provide this edge," she said.

Mody said: "It is imperative that the banks and financial institutions give cognisance to the independent credit ratings for the SMEs and facilitate faster access to funding at appropriate interest rates. Encouragement to the SME sector will result in higher production, growth in exports and various other global competitive advantages.