SME SOLUTION:

SOLUTION FOR SME SECTOR:

Small & Medium Enterprises (SMEs) has been defined by RBI in RPCD Circular No. RPCD.PLFNS.BC.31/06.02.31/ 2005-06 RPCD. dated August 19, 2005, which is reproduced below:

"At present, a small scale industrial unit is an undertaking in which investment in plant and machinery, does not exceed Rs.1 Cr, except in respect of certain specified items under hosiery, hand tools, drugs and pharmaceuticals, stationery items and sports goods, where this investment limit has been enhanced to Rs. 5 Crs. A comprehensive legislation which would enable the paradigm shift from SSI to SMEs is under consideration of Parliament. Pending enactment of the above legislation, current SSI/ tiny industries definition may continue. Units with investment in plant and machinery in excess of SSI limit and up to Rs. 10 Crs may be treated as Medium Enterprises (ME)."

Though SME sector is large employer & contributor to GDP, no specific benefit is presently available to the sector by way of interest rate etc. Similarly no financing targets are imposed on banks. However RBI has advised banks to fix self-targets for financing to SME sector so as to reflect a higher disbursement over the immediately preceding year, while the sub-targets for financing tiny units and smaller units to the extent of 40% and 20% respectively may continue.

As the situation presently stands, SME sector continue to face difficulty in availing finance from banks partially due to non availability of proper financial accounts and infrastructure at their end & partially due to lack luster response from banks.

We at Kredit help arranging finance, both equity and debt from banks as our core business. We are undertaking the assignment right from preparation of paper work up till disbursement of funds. Several clients have benefited from our expertise during last 4 years. 

For SME sector we provide the following services on Turnkey basis: