Avail credit rating services from reputed credit rating companies for bank loan requirements and performance assessment. It also helps in knowing your strengths and weaknesses.
Credit rating is an analysis of the credit risks associated with a financial instrument or a financial entity. It is a rating given to a particular entity based on the credentials and the extent to which the financial statements of the entity are sound, in terms of borrowing and lending that has been done in the past.
It is an opinion on the relative ability and willingness of an issuer to make timely payments on the specific debt obligations over the life of the instrument.
A credit rating not only determines whether or not a borrower will be approved for a loan, but also determines the interest rate at which the loan will need to be repaid.
It helps in assessment of the solvency of the particular entity. These ratings based on detailed analysis are published by various credit rating agencies
MSMEs can upgrade their competence in terms of business and technologies by getting rated through independent, renowned and professional rating agencies empanelled with us.
Benefits of Credit Rating to MSMEs:
After the preliminary assessment of the credit requirement by PHDCCI/Bank:
Rating agencies assess a firm’s financial viability and capability to honor business obligations, provide an insight into its sales, operational and financial composition, there by assessing the risk element, and highlights the overall health of the enterprise. They also benchmark its performance within the industry.
A good credit rating provides us with the initial confidence for the project.
A good rating can help you gain faster and cheaper credit for your venture.
If a firm gets a good rating, he can even approach other banks to get a better rate bargain than the one provided by his existing banker.
The government also favors rated SMEs, restricting certain contracts for such firms. It also operates a performance and credit rating scheme through various credit rating agencies via the National Small Industries Corporation. The scheme provides a one-time subsidy to MSMEs to get rated.
Application is subject to production of documentary proof of KYC requirements fixed by RBI i.e. Latest photographs, proof of residence and proof of identity.
SMERA Ratings Limited (SMERA):
SMERA is a Credit Rating Agency promoted by Small Industries Development Bank of India(SIDBI) , Dun & Bradstreet , India and various leading public and private sector banks. SMERA is , inter alia , in the business of providing credit rating services to various entities in the corporate and financial sectors in India.
SMERA is a company set up by the Government of India to conduct ratings for the MSME sector. Reserve Bank of India has also accredited SMERA as an external credit assessment institution under Basel II norms for undertaking Bank Loan Ratings and a permanent registration from SEBI for Bond Ratings. SMERA has rated approx. 50,000 companies since 2005 and is a market leader in SME rating space.
Benefits of SMERA Rating as informed by SMERA:
To Rated Entity:
Lower cost of finance and preferential treatment by SMERA’s partner banks
Establish mutual trust with the counterparty(Buyer/Lender)
Understand own strengths and areas of improvement
Gain negotiation power for fair terms of transaction based on mutually acceptable information
Complimentary D-U-N-S number that is recognized globally
Understand Rating factors
Understand strengths and areas of improvements of borrower
Faster loan processing and decisions
All necessary data and information needed for appraisal at one place
Identify and approve vendors based on their operational and financial strengths
Decide on credit terms for dealers and buyers based on independent opinion on creditworthiness
To featured SME:
Access to multiple lenders , Private equity and service providers through a single platform
Loan and equity requirements will be put up on a single platform
Finance companies will contact the enterprise to provide their services
Visibility to the enterprise and brand building opportunities
An existing SMERA rated client will get faster access to loans as the SMERA Rating report would have been viewed by multiple stakeholders
SMERA website will act as a marketing tool and enable multiple stakeholders to get access to company information at the click of a button
It will also help in confidence building amongst stakeholders as the company information will be available in a central repository amongst other companies
To New Enterprises:
Detailed report providing insights on the enterprise
Establish credibility with lenders , suppliers , and customers
Higher score will facilitate financing for growth
Overcome the challenge of having complete financial statements
Enhanced visibility to the business and brand building opportunities
Free listing on SMERA website and Banker’s Terminal
D-U-N-S number that is recognized globally
SMERA will provide 20% discount on Credit Rating to the members.
SMERA will offer the members to upload their credit needs on SMERA’s banker’s terminal for credit facilitation.
SMERA will provide ‘New Enterprises Credibility Score’ for new Enterprises without any charges
All the esteemed members of the PHDCCI and other MSMEs
PHD House, 4/2 Institutional
Area August Kranti Marg,
New Delhi 110016
+91-11-26863801-04 : 49545454