1. collateral-free bank loans

The Indian government has made collateral-free financing available to all small and microbusiness sectors. This program offers financial assurances to micro and small businesses. Both new and old businesses are eligible to benefit from this program. The government of India, SIDBI (small industries development bank of India), and the ministry of micro, small and medium enterprise introduced a trust called the credit guarantee trust fund scheme. This scheme (credit guarantee scheme) is implemented for all micro and small enterprises.

2. Access to international trade

The Indian government funds business delegations to attend international trade shows, exhibitions, business meetings and seminars, and conferences held worldwide to share expertise. This international cooperation program enables exposure to industrialization’s more recent facet.

 3. Reduced rate of interest from banks

MSME-registered business benefits from a lower interest rate compared to other enterprises. For the MSME sector, priority credit has been maintained. Since bank lending to MSMEs has reached a certain threshold, they benefit from cheap business loan interest rates. Within the next two years, credit to micro and small firms must rise by 20%. A 10% annual growth rate in micro businesses is seen. The bank’s total lending must be distributed to the MSME sector at a minimum of 60%.

 4. Subsidy on patent registration

According to existing regulations, MSMEs registered with the MSME ministry are eligible for a 50% discount on their patent registration costs. This motivates startups and small companies to continue developing novel ideas and technologies. By applying to the relevant ministries, one may apply for the subsidy.

 5. Tax exemption

Numerous benefits can help you save money that could otherwise be subject to taxation. Enterprises can benefit from a potential taxation basis, which relieves them of the need to maintain thorough audit procedures and comprehensive books of accounts.

 6. Protection against delayed payments

The purchasers of goods or services from SSIs or MSMEs occasionally tend to put off making payments. By granting them the ability to charge interest on delayed payments from the buyer’s side, the ministry of micro, small and medium enterprise supports these businesses. Such conflicts must be arbitrated and mediated within a reasonable time.

The buyer is required to make the payment within 15 days of the day they accepted the products and services from or on or before the payment date that an MSME or SCI-registered firm mutually agreed upon if any MSME-registered enterprise provides goods or services to the buyer. It is only possible if there is no mention of the date of payment.

 The buyer must pay compound interest in addition to interest (charged monthly) on the agreed-upon sum if the payment is delayed for more than 45 days after accepting the goods or services. The rate of interest is thrice what the reserve bank of India stated.

 7. Electricity bill concessions

All businesses with an MSME registration certificate are qualified for electric bill discounts. Because of this, firms may increase output and accept more orders without worrying about incurring capital costs for things like electricity and maintenance. Micro, small, and medium-sized businesses can apply for the concession by sending a certificate of registration and an application to the electricity department.

 

8. Reimbursement of ISO certification

The authorities will not charge MSME-registered businesses any ISO certificate fees if they submit an application to the appropriate authority with their registration certificate. ISO certification is required to increase the standards of MSMEs’ efficiency throughout the bidding process.

 

9. Marketing and promotion assistance from the government

International trade-related events, craft fairs, exhibitions, and exchange programs are all organized by the Indian government. Being a micro, small, or medium enterprise grants access to these venues for international cooperation on trade-related issues with various countries and encourages new commercial relationships. The government also provides subsidies, tax breaks, and technical assistance to MSMEs exporting goods and services.

 

10. Technology upgradation support to MSME

The government reimburses project costs for these objectives for MSME sector units and expenses incurred for implementing clean technology, preparing audit reports, and providing subsidies for licensing products per national and international standards. It is done to increase cost-effectiveness and promote the use of clean energy in manufacturing.

 Well, the MSME registration procedure offers a variety of rewards and incentives, both monetary and non-monetary. These benefits of MSME registration are connected to the commercial and entrepreneurial growth of the company. You must register as an MSME if you wish to take advantage of the benefits for your micro, small, or medium-sized firm.