- MSMEs can avail 100% collateral-free loans from banks.
- Lower interest rates on loans from financial institutions.
- 1% interest rate exemption on overdraft facilities.
- Priority participation in international trade fairs.
- Subsidy available for bar code registration.
- Exemption from security deposits in government tenders.
- Concessions on electricity bills for MSMEs.
- Reimbursement of costs for obtaining ISO certification.
- Benefits from NSIC performance and credit ratings.
- 50% subsidy for patent registration fees.
Benefits of State Governments
State governments offer MSMEs various benefits, including subsidies on land and infrastructure, reduced power tariffs, and financial incentives for setting up industries. MSMEs receive assistance in skill development programs and access to exclusive industrial parks. State policies often include tax exemptions, stamp duty waivers, and faster clearances for projects. Additionally, they benefit from local market linkages, incentives for exports, and participation in state-sponsored trade fairs. These benefits help MSMEs grow and thrive regionally.
Support Services Provide by State Government
- Extended credit facilities
- Industrial extension support and services
- Availability of developed sites for warehouse construction
- Provision of training facilities
- Hire-purchase of machineries for use in MSME
- Assistance in marketing, both within the country and outside (exports)
- Assistance for construction of industries in underdeveloped areas
- Technical consultancy, assistance in capital, and so on, for enhancement of technology in MSME
Benefits of having MSME certificate
With an MSME certificate, businesses can access numerous benefits and subsidies from various government departments, including concessions on electricity. Additionally, it plays a crucial role in streamlining the tender application process, making businesses more competitive in government contracts.
Benefits from Central Government
The central government frequently introduces schemes to support MSMEs, like the Credit Guarantee Scheme, which helps businesses access collateral-free loans. These initiatives are designed to promote growth and provide financial assistance to MSMEs across various sectors.
Credit Guarantee Scheme (CGTMSE)
The Credit Guarantee Scheme (CGTMSE) addresses one of the primary challenges for small-scale industries—securing credit. This scheme, designed to support MSMEs, has been updated with modifications to enhance its benefits for small traders, making it easier for them to access the necessary financial support.
The salient features of the scheme include
The Credit Guarantee Scheme (CGTMSE) features several key updates to benefit MSMEs:
- Increased Loan Eligibility:
- The maximum eligibility loan amount has been raised from ₹25 lakh to ₹50 lakh.
- Lower Guarantee Fee:
- The one-time guarantee fee for loans in the North-Eastern region of India has been reduced from 1.5% to 0.75%.
- Enhanced Guarantee Cover:
- Coverage increased from 75% to 80% for women-operated medium and small enterprises.
- Increased to 80% for micro enterprises on loans up to ₹5 lakh.
- Applied to loans in the North-Eastern region.
- Reduced Guarantee Fee for North-Eastern Loans:
- The one-time guarantee fee for all loans in the North-Eastern region has been reduced from 1.5% to 0.75%.
Benefits from Banks
Banks and financial institutions acknowledge the importance of MSMEs and offer tailored schemes to support them. These typically include priority sector lending, which increases the chances of loan approval, and reduced interest rates. Additionally, MSMEs may receive preferential treatment if there are delays in repayment.
Tax Benefits
Depending on your business, you may benefit from excise duty exemptions and certain direct tax exemptions during the early years of operation. These tax benefits help reduce financial burdens and support the growth of your enterprise.