New scoring system, for start-up business loans Tamilnadu, The Tamil Nadu government is going to implement a new credit scoring system in two months for small business enterprises to get easy loans at low interest rates.
start-up business loan by tamilnadu government
Tamil Nadu Govt. Tamil Nadu has launched the Small and Medium Enterprises Loan Guarantee scheme in August 2022 to help small and medium enterprises get loans quickly and get higher amount in the project assessment.
Under the scheme, the guarantee provided for loans up to Rs 40 lakh has been increased from 75 per cent to 90 per cent.
Also, the guarantee for loans between Rs 40 lakh and Rs 2 crore has been increased from 75 per cent to 80 per cent.
The Government of Tamil Nadu agrees to pay this guarantee. Accordingly, banks provide loans to companies.
Software, as another aspect of this scheme, a credit scoring system of the Tamil Nadu government is being developed for small, micro and medium enterprises to get easy loans at low interest rates.
Tamil Nadu Small, Small and Medium Enterprises Facilitation Company, operating under the name of ‘Bam TN’, is carrying out the work including the production of soft materials for this purpose.
In this regard, an official of the Small Industries Department said,
Even if some companies fail to pay an installment on corporate loans taken from banks. A credit rating scale known as ‘Civil Score’ is reduced.
As a result, new borrowings are affected by these companies for operational capital expenditure and expansion projects.
On the other hand, on the part of the company, property tax, electricity bill, drinking water tax, income tax, GST, etc., have been paid before the due date. However, due to non-availability of bank loans, the industry is likely to suffer.
The Tamil Nadu government has introduced a new scoring system for small business loans. The system is designed to make it easier for small businesses to get access to credit. The new system will score small businesses based on a number of factors, including their financial health, credit history, and business plan. Businesses that score high will be eligible for lower interest rates and longer repayment terms. The new system is expected to benefit a large number of small businesses in Tamil Nadu.
The Tamil Nadu government is committed to supporting small businesses. The state has launched a number of initiatives to help small businesses grow, including the Tamil Nadu Micro, Small and Medium Enterprises (MSME) Policy 2021. The policy aims to promote the growth of MSMEs in the state by providing them with access to finance, technology, and markets. The new scoring system for small business loans is one of the initiatives that has been launched under the policy.
The Tamil Nadu government is confident that the new scoring system will help to increase the flow of credit to small businesses in the state. The system is expected to be more transparent and fair than the old system, and it should make it easier for small businesses to get the financing they need to grow.