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- Msme Loan; If You Want To Take Advantage Of MSME Loan, Then Wholesalers And Retailers Can Get Their Registration Done Like This
Retailers and wholesalers (wholesale and retail traders) can now easily avail loans under priority sector lending. Earlier this month, the central government had announced to bring wholesale and retail traders under the MSME ambit. For this, they have to register on the enterprise portal. The Retailers Association of India has set up a Help Desk for Udyam (Business) Aadhaar Registration to Retail MSMEs. Let us know how this registration will be done …
Register like this
- Visit the MSME site msme.gov.in.
- Under Online Services, select Enterprise Registration.
- Select those who are EM-Two under the MSME registration process.
- Fill the required information in the form and submit the required documents.
Required information to be given for registration
- PAN of the organization and its authorized signatory
- gst number
- aadhar number
- Details of Proprietorship Firm/Partnership/Society/Trust and their authorized signatory
- business address proof
- Entrepreneurship and email addresses, mobile numbers of the people mentioned above
- Plant/Store, Registered Office Address
- Bank Details : Account, IFSC Code (Cancel Cheque)
- Other information such as social category, business activity code, number of employees.
- While applying for registration on the Udyam portal, a NIC code needs to be submitted. There are categories 45, 46 and 47 for wholesale and retail trade.
- MSME certificate will be issued in 1-2 working days after form submission.
- MSME registration and MSME certificate will be issued free of cost.
- Registration may get rejected due to low CIBIL score, loan default, etc.
This month the government had announced
This month, the Modi government had announced to bring wholesale and retail traders under the MSME ambit. According to this, now wholesale and retail traders will now be able to take loans easily under priority sector lending. About 2.5 crore retail and wholesale traders will benefit from the government’s decision. Bringing wholesale and retail trade under the purview of MSMEs will also boost their business.
What is the definition of MSME?
- The government has changed the definition of MSME under the self-reliant India campaign. In this, both investment and turnover have been made on the basis, whereas earlier it was only on the basis of capital investment. At present, enterprises with a capital investment of up to one crore rupees and turnover up to five crore rupees are considered micro enterprises i.e. micro enterprises.
- Apart from this, enterprises with capital investment up to Rs 10 crore and turnover up to Rs 50 crore, come under the count of small enterprise. Enterprises with capital investment up to Rs 50 crore and turnover up to Rs 250 crore are medium enterprises. Now they are not divided into manufacturing and services sectors.
- According to the old classification, enterprises in the manufacturing sector with capital up to Rs 25 lakh were considered micro enterprises. Enterprises with a capital of up to five crores were counted as small enterprises. Enterprises with capital up to Rs 10 crore were medium enterprises.
- Similarly, in the services sector, enterprises with a capital of up to Rs 10 lakh were counted as micro enterprises. Enterprises with a capital of up to two crores were considered as small enterprises. Enterprises with a capital of up to five crore rupees were called medium enterprises.
MSMEs get many benefits
- Traders will get many benefits by becoming an MSME. They are now entitled to priority sector lending. In this type of lending, the loan is available at one-and-a-half percent less interest than a regular loan.
- According to experts, traders will now be able to take loans under ‘Pradhan Mantri Mudra Yojana’ without giving any kind of security. Mudra loans are given in three categories up to Rs 50,000 in Shishu Mudra Yojana, Rs 50 thousand to Rs 5 lakh in Kishor Yojana and up to Rs 10 lakh in Tarun Yojana.
- MSMEs get unsecured loans for starting a new venture under the Prime Minister’s Employment Generation Program. In this, the applicant has to put 10% on his own behalf and there is a subsidy of 15% for urban areas while 25% for rural areas.
- MAT credits are allowed to be carried forward for 15 years instead of 10 years. They get 50% subsidy on patent registration fee. They also become entitled to Industrial Promotion Subsidy.
- In case of delay in clearing the dues from the vendor, RBI has the right to charge compound interest at three times the interest rate. They also get concession in electricity bill. ISO certification charge is refundable. They get one percent rebate on interest in the facility of overdraft. On becoming an MSME, it is easy to get government tender, because the enterprise registration portal is integrated with the government e-market and other government portals.
- Under CGTMSE (Credit Guarantee Funds Trust for Micro and Small Enterprises), MSMEs can take loans up to Rs 2 crore without security. In the event of the debtor not repaying the loan, the government gives a guarantee of repayment of up to 85% of his loan.
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