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As you all would be aware recently our Finance Minister Smt Nirmala Sitharaman dedicated a lot many benefits to the MSME sector in the country by announcements made through various rounds of Press Conferences.

Now the problem is, that we all know that there are a lot of benefits but do we practically understand what are the benefits and really on ground does this benefits exist or not? The answer to this question is that YES they do exist but the only problem is that we don’t dig deep enough to understand how they exist and what are the methods by which we can practically avail the benefits of registering under MSME Schemes.

If you have not registered under the MSME Udyam registration till date I would strongly recommend you to first register under the MSME as per your eligibility criteria of being a manufacturing or a service concern as per chart below.

Now we will discuss 7 very important points for the benefits of registration and MSME which are practically do able and which we do in day-to-day instances so that it can be a big relief to MSME. So let’s not wait to start the discussion immediately

1. MSME Interest rates have been reduced and Capped to 9.25% by banks and 12% by NBFC’s

Interest rates on collateral-free loans extended by banks and financial institutions have been capped at 9.25 per cent and at 12 per cent for loans extended by non-banking financial companies (NBFCs) to micro, small and medium enterprises (MSMEs) under the recently announced package. Remember, this is much lower than what they are charging earlier 11-13 per cent interest rates and NBFCs charge 16-23 per cent interest rates from MSMes

2. Recently Nirmala sitharaman in her press conference has clearly mandated that all MSME will be given the pending GST refunds on high priority basis within 30 days it will be cleared in their account and further in the future, 60 Days shall be the Period.

“All pending GST refunds due till now shall be paid within 30 days from today”, said FM Sitharaman adding that, “In the future, all GST refunds shall be paid back to the industry within 60 days from the date of application.”

For More details, read this :- https://www.businesstoday.in/current/policy/gst-refunds-for-msmes-within-30-days-says-fm-sitharaman/story/374823.html

If you are yet to receive your GST Refund or Your Refund has not been issued, you can always seek our assistance. Mail your matter to us at charteredonline@outlook.com

3. SIDBI bank which is the small industries Development Bank of India has nearly got 10 plus more schemes for specifically MSME.

Now the important thing here is that these schemes are for MSME’s only in most of the cases you might just get interest rate of around 5 to 10% of loan but all that exist if you are registered as MSME. So you can understand why are being an MSME is an important thing in India right now.

In addition to the already existing conventional schemes of SIDBI, they have launched specific Schemes Considering Corona Virus and Lock Down difficulties of MSME businesses. The Details are as under:-

TWARIT

  • The objective of the scheme (ECLGS) is to provide needed relief to MSMEs, whose operations are impacted by COVID -19

SAFE Plus

  • Upto 100% of WC requirement against specific orders
  • No processing fees
  • No prepayment charge

STAR

  • Helping MSMEs to reduce their Power bill
  • Across the segment coverage with 25 KW to 500 KW plants (indicative)
  • Loan Amount: `10 lakh to `250 lakh
  • Quick sanction and fast disbursement

4. The credit guarantee fund trust for MSME which is also called as CGTMSE is a Collateral free scheme for issuing loans to MSME under the scheme which is backed by the government on India’s credit guarantee. This basically are to the extent of 2 crore of the funding to any MSME who wants to avail it as a viable project finance from the listed banks. Most of the scheduled commercial banks are listed with the CGTMSE scheme so you can go and awail that scheme.

Need not to say, since the banks do thorough screening, you must ensure professional advise for Project Reports, viability etc.Old as well as new organisations can avail the benefit under CGTMSE. Benefits exist even for the service organisations who can also the avail these collateral Free Loan benefit

5. 15%Credit linked capital subsidy scheme for technology upgrade, sounds interesting because in most of the cases they allow import subsidy of 15% for technology upgrade to IT companies that will be a big help because it’s the case of subsidy. We have attached below the contact details of the nodal officers under the scheme also

Some Details on this :- The Scheme was launched in October, 2000 and revised w.e.f. 29.09.2005. The revised scheme aims at facilitating Technology Upgradation of Micro and Small Enterprises by providing 15% capital subsidy (12% prior to 2005) on institutional finance availed by them for induction of well established and improved technology in approved sub-sectors/products.

The admissible capital subsidy under the revised scheme is calculated with reference to purchase price of Plant and Machinery. Maximum limit of eligible loan for calculation of subsidy under the revised scheme is also been raised Rs. 40 lakhs to Rs. 100 lakh w.e.f. 29-09.2005.

How to apply:

Online Application and Tracking System has been introduced w.e.f. 01.10.2013. To claim subsidy under CLCSS, eligible MSEs are required to apply online through Primary Lending Institutions (PLIs), from where the MSEs avail term loan.

The completed application is being uploaded by the PLI through Online Application and Tracking System to the attached Nodal Agency which, in turn, recommends the application online to Office of DC (MSME) for release of subsidy.

After processing of application and subject to availability of funds, due approval is accorded from the Competent Authority with concurrence of Internal Finance Wing, after which funds are released to Nodal Agencies. Funds are then transferred by the Nodal Agencies to the PLIs where the account of the MSE is operated.

Scheme Guidelines :- http://www.dcmsme.gov.in/schemes/SCLCS_FOR_TU_SSI_UNITS.pdf

Contact details of Nodal Bank Officers under CLCSS. :- http://www.dcmsme.gov.in/schemes/Contact%20details%20of%20Nodal%20Bank%20Officers%20under%20CLCSS.pdf

We assist in all SIDBI Matters. If you have any queries, write to our team of Professionals to get the same resolved in your Best Interest at charteredonline@outlook.com

6. Most of the MSME go for registration under ISO Certification including the commercial ISO registrations Like ISO 9000/ISO 14001. All expenses that are borne by the MSME can be reimbursed by the Ministry of MSME

Attached herewith is the form to filed and the details of how to do the procedure for the same.

https://msme.gov.in/sites/default/files/ApplicationFormatClaimingReimbursementofCertificationCharges.pdf

7. NSIC Schemes for MSME’s are as under:-

  1. Raw Material Assistance Schemes – https://nsic.co.in/Schemes/Raw-Material-Against-BG.aspx
  2. Bill Discounting Schemes :- http://alpha.nsic.co.in/billdiscounting.asp
  3. Rental Office Spaces to MSME in Delhi, Chennai and Hyderabad – https://www.nsic.co.in/pdfs/faqinfra012017.pdf
  4. Schemes for IT Incubators, Software technology etc

Last but not the least attaching a full complete eBook is below for your reference of all the Government of India schemes that have been launched for MSME

https://msme.gov.in/sites/default/files/MSME_Schemes_English_0.pdf

There are enormous number of schemes but most of these schemes are tough to actually get when actually doing it on the practical ground.

Importantly right now the sentiment is such with coronavirus being the impact player and the government priority is to basically take care of the MSME, there was no better time to register as MSME.

Also we do the work of assistance to our clients for getting these loans and benefits under the MSME with our experience team of Professionals. You can always write to us charteredonline@outlook.com

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