Bank of India (BoI) plans to introduce an exclusive Small Scale Industries (SSI) credit rating system which will take into consideration problems unique to the sector.
Dr J.B. Kulkarni, General Manager, Priority Sector of BoI,said: "Borrowers in the SSI industry are the most vulnerable in respect of receivables, or money which is due from customers to whom they have supplied the finished goods. If there is a delay in receiving payment, the borrower's liquidity is affected which reflects in the conduct of his account,"
The separate credit rating system aims to prevent the entrepreneur being penalised for payment delays outside his control. It will also have lower base marks and less rigorous conditions than those applicable to borrowers in other sectors. The bank will allot further incentive marks under certain parameters such as proven technology and better financial management.
