Soon credit scoring systems for MSMEs in Tamilnadu

Chennai: The Tamilnadu government would soon introduce a digital data driven credit scoring system to enable Financial Institutions and new age Fintech companies to lend to MSMEs (Mini, Small and Medium Enterprises) based on their business potential.

The government would also launch State Level Credit Guarantee Scheme to enable more MSMEs, particularly micro enterprises to access credit, Sigy Thomas Vaidhyan , Industries Commissioner and Director of Industries and Commerce, said while inaugurating an awareness programme on MSMEs as growth engine for India Economy organized by MSME Development Institute as part of Azadi Ka Amrit Mahatsov here.

Delayed payments for the supplies were a critical issue being faced by MSMEs. Realising this Government has mandated the State PSUs, Statutory Boards, Local Body authorities and Co-operative institutions to join the TReDS platform (Trade Receivables Discounting System).

Efforts for development of an online portal integrating all departments with RXIL platform (Receivables Exchange of India Limited) were taken and it would be functional in another six months.

To achieve the export target of USD 100 billion, the State government announced the Export Promotion Policy last year. Also the government has established MSME Trade and Investment Board to further improve competitiveness, productivity and reach of MSMEs functioning in the State.

Joint Director of MSME-Development Institute S Suresh Babuji said there are 8,33,000 MSMEs in Tamilnadu and 11,720 in Puducherry.