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Credit rating scheme introduced

Staff Reporter

Will meet the needs of small enterprises

Krishnagiri: In an effort aimed at creating awareness among small enterprises on the strengths and weaknesses of their existing operations and to enhance their organisational strength, a Performance and Credit Rating Scheme has been introduced by the National Small Industries Corporation (NSIC) in association with Dun and Bradstreet Information Services India Pvt. Ltd., the Deputy General Manager of NSIC, D. Mohan Raj, said.

Concession given

At a workshop here on Wednesday, he said that NSIC had entered into Memorandum of Understanding with commercial banks, to meet the credit needs of small enterprises.

Under the scheme, financial arrangements with banks and loan proposals of small enterprises would be forwarded to commercial banks for immediate sanction.

Along with this, interest rate concession would be given to units accredited under the Performance and Credit Rating scheme. Small enterprises could also avail themselves of loans for equipment and working capital as sanctioned by the bank.

Increase in business

The main objective was to reach a larger number of tiny and small enterprises and provide them with integrated support services. This included meeting credit needs, marketing of their products, technology support and other services. Along with this, emphasis would be made to achieve self-sufficiency through increased business volumes and exercising cost of control wherever necessary, Mr. Mohan Raj said.

Evaluate performance

The president of the Krishnagiri District Small and Tiny Industries Association, G.S. Ganesh, said that NSIC should finance second-hand machines by evaluating their performance, as small and tiny industries could not afford new machines.

Further Small Industries Development Corporation should bring down land prices.

Machinery suppliers complained that only 95 per cent of the invoice value was disbursed. As a result, the balance was held back and released only after inspection of the machinery.

When the machinery was purchased from a reputed and authorised source, NSIC should consider releasing the full amount on receipt of the machinery, he said.

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