In an exclusive interview with SME Times, Rajesh Dubey, Executive Director, ICRA Online Limited, said the number of SME entities who are availing the benefits of credit rating is a small percentage, and it has to take advantage of it in the future for the growth of the sector.
How much MSMEs are benefited by the credit rating process?
Rajesh Dubey: As far as the Micro, Small and Medium Enterprises (MSMEs) are concerned, credit rating can be divided under two segments: one, is the subsidies available through NSIC which is the Performance and Credit related scheme available only to micro and small industries. And, the other segment is for the medium enterprises or for those enterprises who have already been rated earlier under the subsidy scheme of the government.
In the first scheme (for micro and small industries), we found that approximately around 10,000 and 12,000 entities have been rated in the last five years. It is picking up. In the last two years, it has picked really well. But, if we compare it with the total population and number of SMEs in India, it is a small percentage. And, the tendency of the rating agencies generally have been only to rate those entities who have some amount of financial statement in record. There are also some amount of audit elements involved in those entities.
Read Full Article at - SME Times
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