A credit rating is an independent assessment of financial health of a company and its ability to repay obligations. One of the most critical inputs for the growth of SMEs is access to capital and a credit rating can substantially improve the possibility of SMEs to have access to capital from the market.

1. Religare Finvest Limited
Credit Rating Helps Access Capital

2. Emerging Entrepreneurs
Empowering Economy

3.  Contributing 45% of industrial output and 40% of exports
 Employing 60 million people, creating 1.3 million jobs every year
 Producing more than 8000 quality products for the Indian and international market
 17% contribution towards GDP in 2011
 Approximately 30 million MSME units in India
Playing A Vital Role In The Growth Of Indian Economy
Manufacturing Enterprises Service Enterprises
Description INR INR
Micro Enterprises Upto Rs. 25 Lakhs Upto Rs. 10Lakhs
Small Enterprises Above Rs. 25 Lakhs & upto Rs. 5 Crores Above Rs. 10 Lakhs & upto Rs. 2 Crores
Medium Enterprises Above Rs. 5 Crores & upto Rs. 10 Crores Above Rs. 2 Crores & upto Rs. 5 Crores
Small and Medium Enterprises

4. Obstacles Faced
B a r r i e r s t o G r o w t h
Lack of Sound Infrastructure
Regulatory Set-up
Political Risk and Interference
Lack of Organized Information Sources
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` Inadequate Access to Capital

5. Credit Ratings
How They Help…

6. Role of Credit Rating Agencies
Assess Financial Viability & Capability to Honor Business Obligations
Provides Insights into Firm’s Sales, Operational & Financial Composition
Assess the Risk & Overall Health of the Enterprises
Benchmark Firm’s Performance vis-à-vis Particular Industry

7. Benefits
Third Party Assessment
of an MSME Brings
Four-Fold Benefits
► A good rating can help enterprises gain faster cheaper credit
► Rated MSMEs enjoy a higher credibility in the eyes of MNCs & corporates
► Rated MSMEs get to know their areas of improvement, enabling corrective steps
► Government seems to favor rated MSMEs

8. More Advantage
Helps Access Capital
Faster Loan Disbursement
Opens New Avenues
Helps Organize Finances
External Validation
Better Governance
Brings Discipline in Cash
Flow Management
Preferential Interest Rates
Capital Structure

9. Kanchan Jain
President & Chief Risk Officer
About the Author…
Ms. Jain is responsible to develop and execute the Business
Plan on solution based financing for SMEs, besides running the
Risk & Audit function. Kanchan brings with her, over 18 years of
rich experience in Fixed Income, Project Finance, Capital
Markets and Global Structured Products across Europe & Asia,
with marquee organizations.

10. +91-9582218813 – Mohit Gupta
marketing.rfl@religare.com ;
mohit.gupta@religare.com
Thank You