According to CA Atool Hurkat, Managing Director of SME Care Private Ltd the MSMEs should treat CIBIL MSME Rank (CMR) as a valuable business asset. CMR assesses creditworthiness based on an enterprise’s credit and financial behavior. He was speaking at the weekly session on ‘Fueling Growth: Smart finance strategies for MSMEs’, organised by the Vidarbha Management Association (VMA) at Chitnavis Centre, Civil Lines, Nagpur. CA Hurkat explained that CMR has a direct impact on future borrowing capacity, interest rates, and credit limits. It can be used strategically to attract lenders and vendors.

 

In addition to CMR, he discussed a range of financing options available to MSMEs. These include common bank facilities such as working capital finance, term loans, letters of credit, bank guarantees, machinery and equipment finance, export finance, Mudra loans, and bill discounting and factoring. He elaborated on the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), a joint initiative of SIDBI and the Ministry of MSME. The scheme offers collateral-free loans up to Rs 5 crore, with plans to increase this limit to Rs 10 crore. The session was moderated by Mithilesh Jindal, while Ravi Burde was the session in-charge.