BENIFITS OF MSME REGISTRATION IN INDIA 

Scribbled Underline

Micro, Small and medium Enterprises

MSME

Key Benifits Of  MSME Registartion

Access to government schemes and subsidies Lower Interest rates on loans Protection against delay in payment from customers Easier access to credit Exemption from certain taxes

1. Access To Government Schemes And Subsidies

Small businesses that register under the MSME category become eligible for a range of government schemes and subsidies. These schemes can help businesses in various ways, such as by providing financial assistance, facilitating technology upgradation, and supporting marketing efforts.

2. Lower Interest Rates On Loans

MSME registration can help small businesses get access to loans at lower interest rates. This is because the government provides incentives to banks and financial institutions to lend to MSMES at lower rates. Lower interest rates can significantly reduce the cost of borrowing.

3. Protection Against Delay in Payment

MSME registration in India provides protection to small businesses against delays in payment from customers. The government has implemented a mechanism to ensure that payments are made on time to MSMEs. This helps small businesses maintain cash flow and avoid financial difficulties.

4.Easier Access To Credit

MSME registration makes it easier for small businesses to get access to credit. Banks and financial institutions are more willing to lend to MSMEs because of the government's incentives and support. Additionally, MSME registration provides credibility to small businesses

5.Exemption From Certain Taxes

MSME registration provides certain tax benefits to small businesses. For example, businesses registered under the MSME category are exempted from certain taxes, such as the GST for businesses with a turnover of less than Rs. 40 lakhs. This can significantly reduce the tax liability.