New Definition of MSME
Manufacturing & Services
Investment Less than Rs. 1 Crore And Turnover Less than Rs. 5 Crore
Investment Less than Rs. 10 Crore and Turnover Less than Rs. 50 Crore
Investment Less than Rs. 50 Crore and Turnover Less than Rs. 250 Crore
Registration of MSME’s is a compulsory requirement for availing the benefits announced by the Government to this Sector. The following are some of the benefits provided by the Government
Benefits of MSME Registration
100% Collateral-Free Automatic Loans
12 Months Moratorium/Waiver on Loan Repayment. Fully covered under Govt. guarantee. No guarantee fee will be charged. Scheme available till 31st Oct, 2020.
Rs. 50,000 cr. Equity Funding for MSMEs
Govt. will provide equity funding/invest in shares of MSMEs with growth potential through Fund of Funds scheme.
Support for Listing at Stock Exchanges
Govt. will help to expand MSME size as well as capacity; will encourage MSMEs to get listed on main board of Stock Exchanges.
Preference in procuring Government tenders
The Government of India gives special preference in buying from Micro and Small businesses through Government tenders.
1% exemption on interest rate on Bank Over draft (OD)
Enterprises that have MSME Registration can avail benefit of 1% exemption on interest rate on over draft (OD).
Concession in Electricity bills
Enterprises that have MSME Registration Certificate can avail Concession on electricity bill by making application to electricity department
Protection against the delay in payment from Buyers
Maximum period for payment for purchases from MSME shall not exceed 45 days, in case of delay, the buyer is liable to pay interest to the SME supplier, at 3 times of the bank rate.
Special 50% discount on Govt. fees for Trademark & Patent
Enterprises that have MSME Certificate can avail 50% subsidy for patent & trademark registration.
Fast resolution of disputes
Enterprises undergoing a dispute with regard to payments may refer the dispute to the MSME Facilitation Council for conciliation & arbitration.