Benefits of MSME
Benefits of MSME
MSME Sector and Economic Stimulus Policy
Revised Composite Criteria for registration as an MSME
| Type of Enterprise | Micro | Small | Medium |
| Manufacturing & Service Enterprises | Investment in P & M up to Rs. 1 Crores AND Turnover up to Rs. 5 Crores |
Investment in P & M up to Rs. 10 Crores AND Turnover up to Rs. 50 Crores |
Investment in P & M up to Rs. 50 Crores AND Turnover up to Rs. 250 Crores |
Benefits for MSME
| Benefits under Economic Stimulus Policy for MSME | Major Existing Benefits available for MSME |
| Increase in eligibility criteria to include maximum number of new MSM Enterprises | Easy availability of Finance- Collateral free loans up to Rs. 5 lakhs and in principle approval of loans in 59 mins up to Rs. 1 Crore |
| Collateral free automatic loan along with Credit Guarantee Cover. | Concession in interest rates up to 2% on loans up to Rs. 1 Crore for all GST registered MSMEs. |
| Provision of subordinate debt to NPA declared MSMEs o stressed MSMEs | Protection against delayed payments from buyers. Maximum 45 days credit period allowed. In case of default, right to charge monthly compounding interest @ 3% higher than bank rate. |
| Equity Infusion through fund of funds to be set up and operated through Mother Fund. | Exemption from registration under GST Act for annual turnover up to Rs. 40 lakhs and benefit of composition scheme up to Annual turnover of Rs. 1.5 Crores. |
| Government and Central Public Sector Enterprises to release all pending MSME payments in 45 days | Concession up to 50% in government fees for registration of Patents, Trademarks and other intellectual properties. |
| Disallowance of global tenders from foreign companies in Government Procurement tenders up to Rs. 200 crores. | Concession in rate of electricity upon application to Electricity State Board. |
| 1% exemption on interest rate in over draft facility. | |
| Waiver of Stamp duty and Registration fees. | |
| Exemption under Direct Tax Laws. | |
| Waiver in Earnest Money (Security Deposit) in Government tenders. | |
| 15% more price may be quoted by Micro and Small enterprises in Government tendering programs. | |
| A new unit gets 3% concession on interest rate of term loan. |