SME Rating Agency of India Limited (SMERA)
About SMERA
SME Rating Agency of India Limited (SMERA) is a joint initiative by Small Industries Development Bank of India (SIDBI), Dun & Bradstreet Information Services India Private Limited (D&B), Credit Information Bureau (India) Limited (CIBIL) and several leading banks in the country. SMERA is the country's first rating agency that focuses primarily on the Indian SME segment. SMERA's primary objective is to provide ratings that are comprehensive, transparent and reliable. This would facilitate greater and easier flow of credit from the banking sector to SMEs.
What is a SMERA Rating?
1.SMERA Rating is an independent third-party comprehensive assessment of the overall condition of the SME, conducted by SME Rating Agency of India Limited.
2.It takes into account the financial condition and several qualitative factors that have bearing on credit worthiness of the SME.
3.SMERA Rating consists of 2 parts, a Composite Appraisal/Condition indicator and a size indicator.
4.SMERA Rating categorises SMEs based on size, so as to enable fair evaluation of each SME amongst its peers.
5.A SME unit having a SMERA Rating would enhance its market standing amongst trading partners and prospective customers.
Wide Recognition and Acceptance
With each bank having separate rating processes and disclosure requirements for the purpose of disbursing loans, SMEs find themselves spending significant time, effort and money while approaching different banks for credit. As SMERA would adopt a comprehensive, transparent and reliable rating process , it would have a wider acceptance within the banking system of the country. In addition to this, SMERA would be supported by SIDBI and a large number of public and private sector banks in the country. Such wide acceptance would result in SMERA Ratings becoming a key requirement in the loan application process. It will also simplify the process of credit requests and make the process more cost-effective.
Favourable borrowing terms
A better rating from SMERA could lead to more favourable credit terms for the SME.
This could include:
Lower collateral requirements
Lower interest rates
Simplified lending norms
Faster Access to Credit
SMERA Ratings facilitate banks/lending institutions in reducing the turnaround time in processing credit applications , thereby providing SMEs faster access to timely and adequate credit.
Fair evaluation amongst peers
SMERA Ratings categorise SMEs based on size, so that each SME is evaluated amongst its peers. This enables rational- comparison of companies of the same size, thus ensuring that the smaller companies are not at a disadvantage while applying for credit.
Industry-benchmarked ratings
SMERA Ratings take into account industry dynamics, by factoring in a system through which an SME could compare its strengths and weaknesses with those of other companies in the same line of business. This is done through statistically derived industry benchmarks for various ratios.
Rating Process Simplified
SMEs may apply for SMERA rating by contacting us at our office address listed on this brochure or via email to the following address: info@smera.in. Interested parties may also contact any SIDBI office across the country.
A Questionnaire, seeking information on financial and qualitative factors, would be sent to the SME and would need to be filled by an authorised representative of the SME.
A SMERA representative will contact the SME, seeking documents and the completed questionnaire to facilitate the rating process. The representative would also conduct a site visit as part of the evaluation process.
Subsequent to collection of the completed application, relevant documentation and rating fees by the SMERA representative, SMERA will begin its process of evaluation.
SMERA shall complete the evaluation exercise and provide SMERA rating within 15 business days of receipt of all documents from the SME.
Contact Details
SME Development Centre,
C-11, G-Block,
Bandra-Kurla Complex,
Bandra (E)
Mumbai - 400 051
Telephone: 022 67141128
Fax: 022 67141142
Email: info@smera.in
Website:www.smera.in
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