Friday, November 21, 2014: The online finance facilitation centre which was developed by Confederation of Indian Industry (CII) in June to help the micro, small and medium enterprises (MSMEs) with advisory and credit facility. The portal has successfully managed to raise over 850 million within the July to October period, as revealed by CII sources.
More than 20 companies including manufacturing, infrastructure, IT, energy, textile, agro-processing and e-commerce sectors have raised money during the period. CII aims at raising over 4000 million by the end of the current fiscal year through its online facilitation centre, which will work as a one stop for all financing options from different big financial institutions.
The centre will work to identify and match the SME financing demand with banks and financial institutions and further will project large finance requirements across financing institutions. The SME member can reach out for their credit requirements from any centre across the country via online interface. The centre will then process all the required documentations and further prepare the bank project proposals.
CII has inked the partnership contract with seven financial institutions across India including Indian Bank, Indian Overseas Bank, Federal Bank, Muthoot Fincorp Ltd, Religare Finvest, DCB Bank and State Bank of Travancore. Other facilities like online training in finance management for SMEs and information about SME schemes of the government and financial institutions will also be offered by the centre.
The average credit requirement of micro enterprises was estimated to be around Rs. 0.3 to 0.4 millions, whereas for small and medium enterprises it was estimated to be around Rs. 4 to 4.5 million and Rs. 40-55 million respectively.