Industry & Economy
-
SSI
Assocham moots credit rating agency for SMEs
Our Bureau
New Delhi
,
Sept. 20
THE Associated Chambers of Commerce and Industry of India (Assocham) has called for the setting up of a credit rating agency for small and medium enterprises (SMEs) in order to derisk the lending decision of the financial institutions including the scheduled commercial banks.
In a representation to the Government, the President, Mr Mahendra K Sanghi, said: "Credit extension to SMEs is being done in a haphazard manner, which increases the risk of default and invites criticism for the improper lending norms adopted by the financial institutions and commercial banks towards SMEs."
The chamber has suggested that a credit rating agency be set up to assess the credit requirement of the SMEs and make subsequent recommendations to financial institutions and banks for credit disbursement, according to an official release.
In the representation, Mr Sanghi also said that the Small Industries Development Bank of India (SIDBI), a key organisation in the small-scale segment for credit advancement to SMEs, has not been doing its job as per the expectations of the SMEs.
More Stories on :
SSI |
Credit Rating
Article
E-Mail
::
Comment
::
Syndication
::
Printer Friendly Page
|
