Advisory / Handholding Services ( Certified Credit Counsellors )

  • Information asymmetry and perception of high risk are two major constraints in flow of credit to MSME sector. This is sought to be addressed by a system of professional credit intermediaries / advisors who would act as facilitators and enablers to micro and small entrepreneurs so that the aspiring entrepreneurs can access the formal financial system with greater ease.
  • Deepak Mohanty Committee, a committee constituted by RBI to study medium term path on financial inclusion, had recommended for exploring a system of professional credit intermediaries / advisors for MSMEs, which could help bridge the information gap and thereby help banks to make better credit decisions.
  • In line with the recommendations, the framework for Certified Credit Counsellors (CCCs) has been formulated by RBI. Being the principal financial institution for MSMEs with credit plus experience, SIDBI has been advised to play lead role as Implementing and Registering Authority (IRA) in the initiative.
Why CCC is in existence
  • The Micro and Small Entrepreneurs look for credible advisors for help in preparing business plan, project reports, selection of suitable credit instruments available in market and support on non-financial services to set up and step up their entrepreneurial ventures. They want an assurance on credible advisors under some governance framework for relative services along with its quality, bankability of proposals, benchmarked fee structure, etc.
  • The target for positioning CCCs for MSME domain is to ease the access to credit through credible handholding services. CCC shall provide the much needed crucial connect to the credit and non credit players, thus, facilitating the inclusive enterprise development. CCC services shall be spread across the entire enterprise life cycle comprising of scoping/ideation, start up, setting up, stabilization, growth, maturity, turnaround, etc.
Under a Governance Framework
  • CCCs presence on pan India basis and its operations under a governance framework is expected to be a sustainable solution. The eligible candidates shall have to pass ‘Certificate Course on MSME’ conducted by Indian Institute of Banking and Finance (IIBF). CCCs shall have to agree to abide by code of conduct and governance framework. Due diligence of such candidates /entities shall be undertaken by identified agency. The successful candidates should board on udyamimitra portal to offer their services. CCCs can provide services to candidates both from online request made on portal as also offline. However, for offline cases, CCCs shall feed details of services rendered on portal. The CCCs will be evaluated for performance under governance framework.
  • CCCs can charge reasonable fees (as per cap prescribed in Hand book hosted on udyamimitra portal) from the loan aspirants. The loan aspirant can rate the services of CCCs based on the services received. The progress will be monitored by Inter Institutional Group (IIG).
Procedure for Empannellment
  • The applicant should qualify the prescribed certification course i.e. ‘Certificate course on MSME’ conducted by IIBF. The applicant should satisfy the eligibility criteria prescribed (as given in Hand Book on CCC which is hosted on udyamimitra portal) for empanelment. Qualified candidates may apply through udyamimitra portal ( for enrolment. After due diligence, eligible candidates would be empaneled as CCCs on portal.
Benefits to entrepreneurs
  • CCC is expected to guide new / existing entrepreneurs and provide them end-to-end solutions that may lead to bank connect. Detailed role and responsibilities of CCCs is hosted on udyamimitra portal and can be accessed with the link E-Handbook for CCC's.
  • The entrepreneurs will get information on the products and services being offered by the lenders from the trusted source, get help in preparing business plan, advice / counselling on credit, financial discipline etc. The loan aspirants also get help in loan documentation work, in understanding terms of assistance and help in compliance of terms of lending.
Benefits to Lenders
  • Free business leads and filtered applications are flowing to lenders. Preliminary scrutiny on assessment of credit-worthiness of the promoter is done by CCCs. Lenders get complete application along with requisite documents etc. in one go.
  • CCC shall contribute to the strengthening of a robust MSME Eco system. The stakeholders both on demand and supply side are expected to benefit from it. MSME are expected to get their access issues addressed. The credit institutions shall gain bankable proposals, other benefits would include lowering of client acquisition costs. With the effective intervention of CCCs, a more responsive and vibrant ecosystem to set up new MSMEs and take the existing ones to the next level of growth, impetus to job creation and gainful engagement.