Read on to know the various MSME registration benefits related to small businesses:
- Loans without collateral:
The government has taken several initiatives for MSME / SSI which allow them to get credit without collateral. One of the best benefits of MSME registration is the initiative to provide collateral-free loans by GOI (Government of India), SIDBI (Small Industries Development Bank of India) and Ministry of Micro, Small and Medium Enterprises. Guarantee Trust Fund Scheme. This is by far the best MSME registration benefit for small business owners.
- Subsidy on patent registration and industrial incentives:
Business enterprises registered under the MSME Act are given a huge subsidy of 50 per cent for patent registration. This can be availed by sending an application to the Ministry concerned. Additionally, one of the benefits of MSME registration is to receive subsidies for industrial incentives suggested by the government.
- Overdraft facility with interest rate discount:
Businesses or enterprises registered as MSME / SSI under the MSME Act are eligible to receive a benefit of 1% on overdrafts as part of the Credit Guarantee Trust Fund Scheme. Although this may vary from bank to bank.
- Concession on electricity:
One of the simplest benefits of MSME registration, businesses registered under the MSME Act can avail concession on electricity bills. All they need to do is submit the bill with an application form and a copy of the registered certificate by the MSME.
- Protection against delayed payment:
Realizing the ambiguity inherent with business revenue, the government has extended a helping hand by providing a layer of protection against payments. So far, the Ministry of Micro, Small and Medium Enterprises has given business owners and enterprises to collect interest on delayed payment by the buyer.
Under the MSME registration benefit, the buyer is expected to pay for the goods / services within 15 days of purchase. If the buyer delays, payment exceeding 45 days, the enterprise is eligible for compound interest which is 3 times the rate notified by RBI.
- ISO Certification Fee Reimbursement:
A registered small or medium enterprise can claim expenses for reimbursement that were incurred on ISO certification.
The MSME industry is growing tremendously due to the continuous support of the Government of India. This has inspired everyone, especially the youth, to explore their entrepreneurial side and start their own venture. However, in such cases, it is necessary to have knowledge about MSME and MSME registration benefits.