Any company with a view to expanding its operations or expanding in the near future needs additional funds to meet its objectives. Loans, liquidity and investment are everything that a company would ultimately require for long-term and short-term business objectives. Banks, in accordance with the guidelines issued by Reserve Bank of India, have some allocated funds which must be made available only to registered MSME companies on a mandatory basis. This initiative allows an MSME registered entity to use have access to these loan on a priority basis with fewer difficulties.

Let us now look at the nine main benefits of MSME registration. The MSME registration benefits will help you in your company to create, strengthen and build sound business models.

  1. Fewer interest rates and availability and access to greater credit:

In the absence of collateral protection (any property / cash given as protection against a loan), many business owners can find it extremely difficult to obtain a loan to start their company. Nevertheless, with the MSME Registration, all banks are expressly instructed to provide loans at interest rates lower than average and one will be able to make use of this advantage from many banking institutions for their financing needs.

  1. Income Tax exemption:

There are many MSME registration benefits that can save lakhs of the amount that can be taxed in the absence of this certificate. The advantage of a statutory tax base is open to companies, which exempts them from keeping comprehensive accounting and auditing procedures.

  1. Credit Linked Guarantee Scheme:

The Ministry of Micro, Small and Medium Enterprises and the Small Industries Development Bank of India (SIDBI) have formed a Trust called the Micro and Small Enterprise Credit Guarantee Fund (CGTMSE) specifically to enforce the Micro and Small Enterprises Credit Guarantee Fund Scheme. This scheme allows for collateral-free loans of up to 50 lakhs for individual small and medium-sized enterprises.

  1. Market assistance from the government and Export Promotion:

The Government of India organizes a variety of foreign exchange programmes, art fairs, exhibits and trade-related activities. Being classified as a micro, small or medium-sized enterprise provides access to all of these forums for international collaboration on trade-related issues with different countries and facilitates new business relations. The Government also promotes the export of goods and services to small and medium-sized enterprises by way of incentives, tax exemptions and technical support.

  1. Capital and other grants for infrastructure development:

Because MSME is a sector that generates jobs and boosts entrepreneurial projects, the government also recognizes training sectors for MSME and grants capital grants for infrastructure improvisation and support for entrepreneurial growth.

  1. Reimbursement of ISO Certification:

All registered micro-and small-scale industries that benefit from an exemption from all costs incurred for obtaining ISO 9000, ISO 14001 and HACCP certifications in order to promote the standards and certifications earned by MSMEs in a bid to improve their performance across sectors.

  1. Exclusive purchases and sheltering from the competition:

As part of the MSME Market Development Assistance Program, the Central Government is following a program of pricing and buying preferences. Where more than 358 products are subject to exclusive purchases by the Central Government of medium, micro and small units only.

  1. Technology and quality up-gradation support to MSMEs:

In order to improve cost-effectiveness and promote the use of clean energy in manufacturing, the Government shall reimburse project costs for these objectives for MSME sector units as well as expenditure incurred for the implementation of clean technology, the preparation of audit reports and subsidies for licensing products in accordance with national and international standards.

  1. MSME Samadhaan (Protection against delayed payments)

If a buyer of products/services from an MSME registered entity fails to make payment of the amount to the supplier, he shall be liable to pay compound interest (with monthly rests) to the supplier on the amount beginning from the appointed day, or on the date agreed on, at three times of the Bank Rate notified by Reserve Bank.

  1. PMEGP (Pradhan Mantri Employment Generation Program)

The Prime Minister's Job Generation Plan (PMEGP) is a credit-based grant program launched by the Government of India in 2008. The SMEGP is a combination of two schemes, namely the Pradhan Mantri Rojgar Yojna and the Generation of Rural Jobs Programme. This initiative focuses on creating jobs for self-employed employees by micro-enterprises in the non-farm sector by supporting unemployed young people and traditional craftsmen.

  1. ISEC (Interest Subsidy Eligibility Certificate)

The Interest Subsidy Eligibility Certificate (ISEC) Program is an important framework for the financing of the Khadi system implemented by Khadi institutions. This was implemented to raise funds from financial institutions to fill the gap between the real needs of the Fund and the availability of funds from budgetary sources.

 



LIST OF SCHEMES UNDER MSME

SL. NO.

NAME OF THE SCHEME

A.

Credit support schemes

A-1.

PMEGP (Prime Minister Employment Generation Programme)

A-2.

CGT SME (Credit Guarantee Trust Fund for Micro & Small Enterprises)

A-3.

ISEC (Interest Subsidy Eligibility Certificate)

B.

SCHEMES FOR DEVELOPMENT OF KHADI, VILLAGE AND COIR INDUSTRIES

B-1.

Science and Technology Scheme

B-2.

MDPA (Market Promotion & Development Scheme)

B-3.

SFURTI (Revamped Scheme Of Fund for Regeneration Of Traditional Industries)

B-4.

CVV (Coir Vikas Yojana)

B-4.1.

CITUS (Coir Industry Technology Upgradation Scheme)

B-4.2.

S&T for Coir (Science and Technology (S&T) for Coir)

B-4.3.

MCY (Skill Upgradation & Mahila Coir Yojana)

B-4.4.

EMP (Export Market Promotion)

B-4.5.

DMP (Domestic Market Promotion Scheme)

B-4.6.

TIRFSS (Trade and Industry Related Functional Support Services)

B-4.7.

PMSBY (Welfare Measures (Pradhan Mantri Suraksha Bima Yojana)

C.

Schemes for Technology Upgradation and Quality Certification

C-1.

Financial Support to MSMEs in ZED Certification Scheme

C-2.

ASPIRE (A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship)

C-3.

NMCP (National Manufacturing Competitiveness Programme)

C-3.1.

Credit Linked Capital Subsidy for Technology Upgradation

C-3.3.

Bar Code Assistance (Marketing Support/Assistance to MSMEs)

C-3.4.

Lean Manufacturing Competitiveness for MSMEs

C-3.5.

Design Expertise Training to MSMEs

C-3.6.

Technology and Quality Upgradation Support to MSMEs

C-3.7.

Entrepreneurial and Managerial Development of SMEs through Incubators

C-3.8.

Enabling Manufacturing Sector to be Competitive through QMS&QTT

C-3.9.

Intellectual Property Awareness (Building Awareness on Intellectual Property Rights)

D.

Schemes for Marketing Promotion

D-1.

International Cooperation

D-2.

Scheme for Marketing Assistance

D-3.

P&MS (Procurement and Marketing Support Scheme)

E.

Entrepreneurship and skill Development Programme

E-1.

ESDP (Entrepreneurship Skill Development Programme)

E-2.

ASTI (Assistance to Training Institutions)

F.

Infrastructure Development Programme

F-1.

MSE_CDP (Micro & Small Enterprises Cluster Development)

G.

Scheme of Surveys, Studies and Policy Research

G-1.

SS&PR (Survey Studies & Policy Research Guidelines) with effect from 15-10-2018. (Download English) & (Download Hindi)

H.

National SC-ST-HUB

H-1.

National SC-ST-HUB (Download English) & (Download Hindi)

I.

Scheme of Information, Education and Communication

I.1.

Information, Education & Communication Scheme (IEC) Guideline(Download English)