The Hindu Business Line : KSSIs, Crisil fix fee for credit rating

SMEs not falling under SSI category are rated on an eight-point scale. Some of the SSIs rated by Crisil have already received interest rate benefits from their banks.

Thiruvananthapuram March 11 The Kerala State Small Industries Association (KSSIA) and Crisil have jointly worked out a special fee structure to motivate entrepreneurs in large numbers to go for credit rating.

Crisil has offered a group incentive, which the KSSIA says makes the scheme very attractive for SSI members.

RATING FEE

After allowing for the concession offered by Crisil, the rating fee works out to Rs 7,587-13,875, depending on the turnover.

The KSSIA and Crisil had organised a seminar on `Performance and credit rating scheme for SSIs,' in which office-bearers and members participated.

AWARENESS DRIVE

The special fee structure rates for SSIs were finalised as part of the seminar.

Mr I.A. Peter, President of the KSSIA, and Mr K.G. Madhu, Secretary, said that the seminar was undertaken with a view to creating awareness among members about the rating scheme, to which the National Small Industries Corporation provides a subsidy of 75 per cent.

2-DIMENSIONAL SCALE

Mr Anil Verghese, Manager (Associates), SME Rating, Crisil, made a presentation on the concept, merits and benefits of rating for SMEs and SSIs.

Participants were told about the two-dimensional scale against which SSIs get rated under the subsidy scheme.

PACT WITH BANKS

Crisil has signed agreements with SBI, Bank of Baroda, Bank of India, Canara Bank, Allahabad Bank, UCO Bank, United Bank of India, Corporation Bank, State Bank of Mysore, State Bank of Travancore, IOB, Syndicate Bank and Federal Bank to carry out the rating exercise of their respective SSI and SME borrowers.

SMEs not falling under SSI category are rated on an eight-point scale.

Medium-size manufacturing enterprises and service and trade sector enterprises are assessed for rating on this scale.

INTEREST BENEFITS

Some of the SSIs rated by Crisil have already received interest rate benefits from their banks.

A few banks have already declared their policy on offering attractive rates for SMEs with high ratings.

More Stories on : Credit Rating | Strategy | SSI | Kerala

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