MSME industry came with a new launchpad of performance and credit rating scheme. The performance & credit rating scheme was composed of the consultation with the Indian Bank’s association and industry associations to create awareness amongst the small scale industries about the pros and cons of their existing operations and provide them with the opportunities to enhance their strength.
The small scale units play a significant role in a developing economy like India. Small-scale industries are the backbone of the Indian economy. So, there arises a need to introduce the Performance and credit rating scheme. The scheme will encourage all the small sector units to prosper and increase productivity by contributing to the Indian economy.
Performance and credit rating scheme aims to establish an independent & trusted third-party opinion on the capabilities and worthiness of MSMEs and makes the credit available at attractive rates to ensure better productivity. In the performance and credit rating scheme, the government expects the rating products to help small scale units or micro-small units to have easy access from the banks and at open rates. Specific agencies do the rating under the scheme. Micro, small industries are at liberty to go for any of the prescribed agencies. The entire process of the rating is required to be fulfilled by these rating agencies. Ministry of MSME, through NSIC, is implementing the current scheme. Under the Performance and credit rating scheme, rating charges are reimbursed by the small sector industries.
The fees paid to the rating agency very much depends upon the turnover of the small scale industries. The slabs of the turnover, along with the share of SSI towards the fee charged, are as follows:
The scheme aims at the following:
Recognized MSMEs are eligible for the scheme.
Credit rating scheme shall have the following benefits:
Small business enterprises shall submit their application in duplicate and can be submitted directly to the rating agency or be submitted to any of the branches of NSIC. If sent to NSIC on receiving the application, the second copy of the same and the necessary documents are forwarded to Rating Agency. If the application is sent to the rating agency, a copy of the application is sent to NSIC for its reference.
As an Aatmnirbhar Sena, we are doing our best to promote and create awareness of the scheme. Though this scheme is already popular among the masses, we are hitting hard to make it more prominent among small-scale enterprises. We are adamant about organizing several open house sessions and workshops for the MSMEs. We are trying to propagate the scheme through campaigns and seminars. We are leaving no stone unturned in making the plan popular for benefits that can be availed by a maximum of the units. The Performance and credit rating scheme has been widely accepted by the small scale units with open arms and is doing quite well to date.