Considering that different banks deploy customized rating processes and disclosure requirements while disbursing credit, applicants find themselves investing significant time, effort and money while approaching lenders for credit.

At SMERA, we have adopted a standardized, comprehensive, transparent and reliable rating process to arrive at a representative risk of a unit. Further, SMERA is supported by SIDBI and a large number of public and private sector banks in the country & such wide acceptance by the lender fraternity has made SMERA Ratings an integral part of  the loan sanctioning process. The Rating process is standardized across the industry and sectors and this has enabled simplification of application process to the lenders, thus making it cost-effective for the units while applying for credit either for the first time or while enhancing their credit limit

SMERA has entered into MoUs with 34 Banks/Financial Institutions. Banks such as:, State Bank of India, Punjab National Bank, Syndicate Bank, Canara Bank, State Bank of Bikaner & Jaipur, Dena Bank, Corporation Bank, Union Bank of India, UCO Bank, CitiGroup, Bank of India, Vijaya Bank, Allahabad Bank and Bank of Baroda and many others are working closely with SMERA to popularize third party ratings amongst their existing as well as potential MSME units in the country. Some of these banks are also extending interest rate benefits to better rated SMERA units.

Better Ratings from SMERA has started benefiting MSME units by way of favorable borrowing terms, such as: 

	Lower collateral requirements
	Reduced Interest Rates
	Simplified lending norms

SMERA Ratings have enabled banks/ lending institutions in reducing their turnaround time in processing credit applications from the MSME units, thus providing applicants access to timely and adequate credit.  

SMERA Rating fees are economical and affordable for MSME units, with eligible SSI units enjoying rating fee subsidy up to 75% under the "Performance & Credit Rating Scheme of NSIC". In order to avail the 75% subsidy, the eligible SSI units should  possess an valid SSI Registration Certificate / Entrepreneur Memorandum Number (Permanent / Provisional)& should not have availed any rating subsidy in the past from NSIC)..

Units availing SMERA Ratings are assigned a unique 9 digit D&B D-U-N-S® Number. This number is an international identification number, which provides unique identity to single business entity. D&B D-U-N-S® Number is used by the world's most influential standards-setting organizations and is recognized, recommended and/or required by more than 500 global, industry and trade associations for their internal requirements.

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), and several leading banks in the country.

SMERA is the country's first & only dedicated rating agency that focuses primarily on the MSME segment. SMERA's primary objective is to provide Ratings that are comprehensive, transparent and reliable. The objective of this Rating is to facilitate greater and easier flow of credit from the banking sector to MSMEs and also as a tool to facilitate self improvement.

SMERA Ratings categorize MSMEs on the basis of their size, thus enabling ease of comparison of the rated unit with its peer within the industry. The size categorization enables rational comparison of companies of the same size, thus ensuring that the smaller units are not compared with larger units or companies and are put at a disadvantage while applying for credit.

	Enhances credibility of the unit
	Open doors to  corporate sector having large vendor base
	A tool to instill good governance practices within the unit proving beneficial in the long run
	Aids in building trust in the international trade partners
	A tool for self correction and improvement
	Better SMERA Ratings encourage lenders to offer credit on better terms
	Enables getting shortlisted by customers/lenders/vendors/private equity and other financiers
	Approach newly incorporate SME Exchange for broad basing share holding and funding

	Provides banks/lenders a neutral, third party and an un-biased opinion on the borrower
	Provides  comfort to lenders
	Facilitates pricing of loan products on attractive terms
	Provides an early warning signals to banks during periodic review of accounts