Government Promotion for MSME

Government Promotion for MSME

 

Since the MSME sector is the largest provider of employment in India after agriculture, Government of India (GoI) is taking active interest in the development of this sector. In order to improve credit flow to this sector, the GoI is encouraging MSME players to get themselves rated. The rating will help MSMEs to obtain better credit facility from lenders and also will help them establish their credibility.


The government has introduced a subsidy scheme, where a part of the rating fee is reimbursed by National Small Industries Corporation (NSIC). As per this scheme, 75% of rating fee paid to the designated rating agency is subsidized by NSIC subject to a ceiling of Rs. 25000 for entities having turnover up to Rs. 50 lakhs, Rs. 30000 for entities having turnover between Rs. 50 lakhs to 2 Crore and Rs 40000 for entities having turnover exceeding 2 Crore. The scheme has been encouraging MSMEs to get themselves rated. This subsidy is available for first year only. For renewal, the MSME has to pay the fee to the rating agency. A brief introduction to prominent players in the Indian credit rating market is given below.


Click here for details of the NSIC “Performance and Credit Rating Scheme”