The concept of MSME or Micro, Small, and Medium Enterprises was introduced for the first time by the government under the Micro, Small and Medium Enterprises Development (MSMED) Act of 2006. MSMEs have played a key role in the socio-economic development of the country. Ever-since independence MSMEs have contributed inevitably in industrialization and infrastructural development, and provided silent support to the Indian economy and protected from all global economic shocks and crisis. But these industries have been experiencing a stagnant growth and constantly stricken by various stigmas. The situation became graver after the entry of MNCs in 1991.
In our ambitious mission to make MSMEs of today, MNCs of tomorrow, we realize that it is of critical importance that MSME Consultant plays an important role in bringing to fore the opportunities available for MSMEs in the form of various schemes, loans and other benefits provided by the government.
MSME Consultants have been instrumental in enabling to open various doors for the eligible enterprises so that they can benefit the most, mainly in the form of working capital availability and optimization through various innovative and cost-effective means.
One can benefit merely by going through below avenues as a sample of available options and can then connect to the MSME Consultant of their choice to help take the said benefits among others.
ELIGIBILITY CRITIREA FOR MSME CLASSIFICATION
There is a composite criteria of investment and turnover that needs to be fulfilled to be categorized appropriately. Explained below:
Net Investment in Plant & Machinery or Equipment
Less than 1 crore
Less than 5 crores
1 crore to 10 crores
5 crores to 50 crores
10 crores to 50 crores
50 crores to 250 crores
LOANS FOR MSME
Financial institutions offer a special credit facility to MSMEs, Startups, individuals and various other business entities for several purposes, this facility is known as MSME loan. It can be used for various business requirements such as business expansion, business commencement, working capital needs, fixed capital requirements, cash-flow management etc. These loans are offered by various banks and NBFCs. Mentioned below are some of the popular MSME schemes offered by various financial institutions:
CGTMSE: Credit Guarantee Fund Trust for Micro and Small Enterprises
CLCSS: Credit Linked Capital Subsidy Scheme
Credit Guarantee Scheme
MUDRA Yojana under PMMY
National Small Industries Corporation (NSIC) Subsidy
PMEGP: The Prime Minister Employment Generation Programme
PMRY: Prime Minister’s Rozgar Yojana
PSB Loans in 59 minutes
Micro, Small and Medium enterprises are afflicted by various problems which are often ignored which is leading to their stagnant growth. To curb this issue government has initiated several MSME schemes under different ministries to provide assistance and various benefits to the eligible MSMEs. This pioneering effort would give them encouragement, enhancement and handholding resulting in improving productivity of the enterprises. It would help them to develop and expand in all spheres. Some popular MSME schemes you can take benefit of, basis your eligibility, are mentioned below:
Prime Minister Employment Generation Programme (PMEGP)
Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTMSE)
Interest Subsidy Eligibility Certificate (ISEC)
Science and Technology Scheme
Market Promotion & Development Scheme (MPDA)
Revamped Scheme Of Fund for Regeneration Of Traditional Industries (SFURTI)
Coir Vikas Yojana (CVY)
Science and Technology (S&T) for Coir
Skill Upgradation & Mahila Coir Yojana (MCY)
Export Market Promotion (EMP)
Domestic Market Promotion Scheme (DMP)
Trade and Industry Related Functional Support Services (TIRFSS)
A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE)
National Manufacturing Competitiveness Programme (NMCP)
Procurement and Marketing Support Scheme (P&MS)
Entrepreneurship Skill Development Programme (ESDP)
Assistance to Training Institutions (ATI)
Micro & Small Enterprises Cluster Development (MSE-CDP)
Scheme of Surveys, Studies and Policy Research
Scheme of Information, Education and Communication
Delayed Payment – A big problem for MSEs
The Micro and Small Enterprises are being provided with a protection against delayed payments under the Micro, Small and Medium Enterprise Development (MSMED) Act, 2006. Section 16 of this act states in case buyer fails to pay the required amount to the supplier within 45 days of the acceptance of the goods/service rendered then he is liable to pay the whole amount along with a monthly compound interest I.e., three times of the bank rate notified by RBI.
One can easily file a complaint online through MSME Samadhan portal, after which it would be reviewed by the concerned MSEFC Council and it will make further actions.
To file a complaint, it is necessary that you have the following documents:
Copy of Work Order
Copy of Invoice
Initially buyer will receive a notice directing him to pay the due amount and on expiration of 15 days’ notice period if the amount is still due, you can take the matter to MSEFC.
After you make a request, council will send notice to both the parties to appear before the council for conciliation proceedings.
Every reference made to MSEFC shall be decided within a period of ninety days from the date of making such a reference as per provisions laid in the Act but if it also fails to settle the dispute then case further goes to the arbitration as per Arbitration and Conciliation Act for the settlement.
MSE Delayed payments need its due importance and needs to be implemented well so as to reap real benefits to MSEs. Your consultant can help you with same effectively and speedily.