Software for SME financing by banks

Mumbai, Dec 7 (UNI) In its bid to help the banks do quick appraisal and rating of SME credit proposals in an automated workflow environment, Small Industries Development Bank of India (SIDBI) today released a comprehensive software tool, the Credit Appraisaland Rating Tool(CART).

Releasing the software, Chairman of IDBI (parent body of SIDBI), V P Shetty who is also the chairman of the Indian Banks' Association (IBA), hailed it as an innovation by SIDBI which has already been acknowledged by the Reserve bank of India (RBI) in the credit policy statement.

He exhorted the banks to use the tool for faster credit delivery to SME sector. However, he clarified that the software will be made available free of cost to only those 14 public sector banks that have already signed MoU with SIDBI for joint and co-finance.

Talking about the features of the internally developed software, which is being used by the SIDBI for past three years, Deputy Managing Director of SIDBI Rakesh Rewari said ,''It has contributed to a significant reduction in credit dispensation time in the bank''. With a view to extending CART to other banks and financial institutions, SIDBI has developed a separate web-based version of the software, he informed. Chief General Manager of RBI, G Srinivasan, was also present on the occasion.

CART has two menu-driven modules for Appraisal and Rating. The appraisal module covers analysis of all the relevant aspects of a credit proposal like management, financials, industry and others.

The software also has the facility for undertaking rerating of proposals.

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