7 benefits of micro small and medium enterprises (MSME)

The Indian government has always been in favor of providing benefits to Micro, small and medium enterprises (MSMEs).

There are many advantages of obtaining MSME registration in India, which may be only availed if the business had registered itself as an MSME/SSI under MSME Act. the subsequent are a couple of advantages or obtaining SSI/MSME registration in India.

Bank Loans (Collateral Free)

The Government of India has made collateral-free credit available to all or any small and micro-business sectors.

This initiative guarantees funds to micro and little sector enterprises. Under this scheme, both the old also because the new enterprises can claim the advantages.

A trust named the Credit Guarantee Fund Scheme was started by the Government of India, SIDBI (Small Industries Development Bank of India) and hence the Ministry of Micro, Small and Medium Enterprises was implemented to implement the scheme ( Credit Guarantee Scheme)) for all micro and small enterprises.

Subsidy on Patent Registration

A 50% subsidy is given to the enterprise that has a certificate of registration granted by MSME. This subsidy is often taken for patent registration by applying to the Ministry concerned.

Overdraft rate of interest Exemption

Businesses or enterprises registered under MSME can avail a advantage of 1% on the Over Draft as mentioned during a scheme that differs from bank to bank.

Industrial Promotion Subsidy Eligibility

Enterprises registered under MSME also are eligible for a subsidy for Industrial Promotion as suggested by the govt.

Protection against Payments (Delayed Payments)

Many times, buyers of services or products from MSME or SSI delay payment.The Ministry of Micro, Small, and Medium Enterprise lend a hand to such enterprises by giving them the proper to gather interest on the payments that are delayed from the buyer’s side.

The settlement of such disputes must be wiped out the minimum time through conciliation and arbitration.

In case, if any MSME registered enterprise supplies any goods or services to a buyer then the customer is required to form the payment on or before the agreed date of payment or within 15 days from the day that they had accepted the products and services from MSME or SCI registered business( if there's no mention of the date of payment).

If the customer delays the payment for quite 45 days after accepting the products or services then the customer has got to pay interest alongside interests (monthly) on the quantity that was agreed to be paid. The rate of interest is 3 times the speed that's notified by the Federal Reserve Bank of India.

Fewer Electricity Bills

This concession is out there to all or any the Enterprises that have the MSME Registration Certificate by providing an application to the department of the electricity alongside the certificate of registration by MSME.

ISO Certification Charges Reimbursement

Registered MSME enterprises can claim reimbursement of expenses incurred for ISO certification.