Small Scale Industries (SSI) or Micro, Small and
Medium Enterprises (MSME) is an initiative by the Government of India to
strengthen the Micro, small and Mid scale enterprises of India. MSME
Registration offers numerous benefits to the organisations registered
under it. MSME Registered companies can reap benefits like cheaper
credit, easy loan approval, tax exemptions, etc. so that they can
achieve growth at a much faster pace and without enduring hardships.
However, to attain the MSME Registration certificate, one must satisfy
the conditions laid and regulated by the MSMED Act. Although MSME
Registration is completely voluntary, it is highly recommended to all
business to get MSME registration done before the commencement of the
business. The registration process is simple and hardly takes two days
to get done.
MSME borrowers get Co-Lateral Free Loan from Banks.
In terms of an RBI, notification bans are mandated not to accept
collateral security in the case of loans upto Rs 10 lakh extended to
units in the MSE sector. Further, in terms of an RBI notification banks
may, on the basis of good track record and financial position of MSE
units, increase the limit of dispensation of collateral requirement for
loans up to Rs.25 lakh with the approval of the appropriate authority.
Support Provided by the Ministry for enabling MSMEs to get Credit Rating.
The Ministry is implementing the Performance & Credit Rating Scheme,
the main objective of the scheme is to provide a trusted third party
opinion on the capabilities and creditworthiness of the MSEs so as to
create awareness amongst them about the strengths and weakness of their
Support available for Obtaining ISO Certification.
The Ministry is implementing the Certification Reimbursement Scheme for
Micro & Small Enterprises (MSEs) for reimbursement of certification
expenses, only to those MSEs which have acquired Quality Management
Systems (QMS)/ISO 9001 and /or Environment Management Systems (EMS)/
ISO14001and / or Food Safety Systems (HACCP) Certification. Under the
scheme provides reimbursement
of 75% of the certification expenses is provided.(Maximum INR 75,000)