Benefits of MSME Registration

Benefits of MSME Registration

There are various advantages that businesses get after obtaining MSME registration in India under the MSME act. They are as follows:


Collateral free loans are loans provided to the lender by the borrower without any guarantee. One can approach a borrower for a loan even if he/she has nothing to invest in or pledge. The Government of India has made collateral-free credit available to all small and micro-business sectors. This initiative guarantees funds to micro and small-sector enterprises. Under this scheme, both the old as well as the new enterprises can claim the benefits.


A massive 50% subsidy is given to the establishment having a certificate of registration granted by MSME. This subsidy for patent registration can be availed by submitting applications to various ministries.


One of the big benefits to the MSMEs, corporations registered under the MSME act can get a concession on electricity bills. For doing this, they have to submit the bills along with an application and a copy of the registered certificate by MSME.


Taking into account the uncertainty with the revenue generation by various businesses, the government provides a layer of shielding to them against payments. The Ministry of Micro, Small, and Medium Enterprise has given business owners and enterprises to collect interest on payments delayed by the buyer.

Under the MSME registration benefits, a buyer is expected to make a payment for the goods/services within 15 days of the purchase. If the buyer delays, the payment for more than 45 days, the enterprise is eligible to charge compound interest which is 3 times the rate notified by RBI.

Published by amisha

Comment here...

Login / Sign up for adding comments.