What are the Key Benefits of MSME Registration in India?

The advent of technology and the startup culture are proving the effective concept in pushing the Indian economy. Due to the government's encouragement and flexible startup policies, not only youth from metro cities are coming forward andstarting their venture but also people of the hinterland and rural areas inclined towards startups. Since 2001, the government has been making significant changes in MSME policies to uplift the status of MSMEs in the country.

Today MSMEs are playing a significant role in the economic growth and the socio-economic development of the nation. The government always makes policies infavour of MSMEs, therefore there are many benefits of MSME registration. The post aims to highlight the key benefits of MSME registration in India.

Collateral-Free Loan Facilities & Priority Lending:

After MSME registration, businesses will get collateral-free loan facilities and priority lending. To provide relief to millions of MSMEs reeling under the impact of COVID-19 and lockdown in the country, Finance Minister has announced the collateral-free automatic loan of Rs 3 lakh crore. Such plan is expected to benefit 45 lakh MSMEs and will allow them to resume business activities. Besides, the government is also providing equity support to stressed MSMEs and facilitating the provision of Rs. 20,000 crore as subordinate debt. This scheme will enable the promoters of the MSMEs to get easy loansfrom banks.

Credit Linked Capital Subsidies for MSMEs:

After MSME registration, businessescan avail the scheme of credit linked capital subsidies. Under this scheme, MSMEs will get 15% capital subsidy for technology upgradation.

Loan from Banks at Low Interest Rate:

After MSME registration, businesses or enterprises canavail loans from banks at low-interest rate. According to the Union Budget 2019, MSMEs registered under GST can get 2% interest subvention.

Market Development Assistance:

After MSME registration, businesses or enterprises will get marketing assistance from the Central Government. Under the Price and Purchase Preference Policy, there are around 358 items that will be purchase by Central Government from the MSME units only.

Concession on Electricity Bills:

After MSME registration, businesses or enterprises can take benefits of concession on electricity bills. To take this benefit, registered MSMEs have to make an application to the department of electricity along with the certificate of MSME registration.

To know more about MSMEs registration services or other related services in India, please contact to our prestigious and responsible law firm of Delhi at: +91-8800-100-284 or Mail at Contact@Company-Registration.in

Posted by Anita Aswal - 23rd March 21

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