MSME registration is a government- oriented scheme to be availed by micro, small and medium-sized enterprises. These entities are accountable for the economic growth of the company. In simple terms, the economic growth of the company and MSMEs growth are inter-related.
The MSME registration can be done on the online portal known as “Udyam registration”. Here, in this blog, we will make you become accustomed to the advantages of an MSME/SSI Registration. This includes tangible as well as intangibles benefits to trade and entrepreneurial growth.
Below are the key advantages of MSME/SSI Registration. Those are as follows:-
Collateral Free loans from banks
In the absence of collateral security, many MSME/SSI Registration companies may find it enormously difficult to secure a loan for starting a new industry. The credit Guarantee scheme, aka CGS, was launched by the Indian Government to help SSI to avail credit from banks without any collateral. The scheme encompasses existing as well as new companies. The Indian Government in collaboration with the Ministry of MSME launched a Trust called Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to deploy funding schemes for Micro and Small Enterprises.
50% subsidy on Patent registration
Enterprises under MSME registration are eligible to avail fifty percent of subsidy related to registration filing an application to concerned ministry.
1% exemption on the rate of interest on overdraft
Enterprises having MSME/SSI Registration can avail a one percent exemption on the rate of interest on overdraft as per the scheme.
Subsidy on Industrial Promotion
Enterprises under MSME/SSI Registration can avail the Industrial Promotion Subsidy as prescribed by the Indian Government.
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