Everything You Need to Know About Web Portal For MSME Credit
MSME stand for Micro, Small and Medium Enterprises. It is the backbone of India. MSME promotes the development of India by boosting economic growth.
The MSME aims to contribute to employment. In comparison to large industries, the capital cost to grab the opportunity of employment is much low. It helps in the development of rural and backward populations. Over the year, it has appeared as a vigorous sector of the country’s economy.
Let’s discover about MSME. In addition, there is information about the Web Portal for MSME credit.
MSME: The Background
Indian Government introduced this Scheme as per MSMED (Micro, Small and Medium Enterprises Development) Act 2006. It is handled by the Ministry of MSME (MoMSME).
The current Union Minister of MSME is Shri Narayan Tatu Rane. On 11 May 2022, Shri Narayan Tatu Rane inaugurated the Centre for Excellence for Khadi Programme under MSME. The current State Minister of MSME is Shri Bhanu Pratap Singh Verma.
It works for the advancement and growth of India. It focuses primarily on rural India. According to some documented records, there are more than 6.33 crore MSMEs across the country as of 31st April 2022.
To develop a keen understanding of MSME, and know the vision, log-in process, benefits of MSME, and the schemes of MSME, read below:
One such scheme of this programme is Interest Subvention Scheme for MSMEs.
Classification of MSME
Any enterprise or business is classified at three levels in MSME
If the investment is not more than ₹1 Crore and the turnover is less than ₹5 Crore, it is categorised as a Micro-enterprise.
2. Small Enterprise
If the input in a business is around ₹10 Crore and the turnover is not more than ₹50 Crore, it is labelled as a small enterprise.
3. Medium Enterprise
If the investment is around ₹50 Crore and the turnover is about ₹250 Crore, it is labelled as a medium enterprise.
Note: The government announced this notification on 1 July 2020.
The vision of MSME
The main vision of MSMEs is to:
- Improve the lives of employees and artisans.
- Provide jobs, loans, and other services.
- Encourage the growth of entrepreneurship.
Benefits of MSME
- Bank Loans
- Higher Benefits from Governments
- Minimum Alternative Tax (MAT)
- Secure Tenders
- Tax Exemptions
- Collateral Loans
- Ease of Credits
- Opportunity for Growth
- ISO Certified
What is the Function of the Ministry of MSME?
- Credit Flow
- Provide Certification
- Technology Development
- Develop Technology Process
- Upgrading Infrastructure
- Skill up Gradation
- Development and Product Design
Registration in MSME Web Portal
Any company, trust, proprietorship, firm or society are eligible for registration in the web portal of MSME. An individual can’t apply for registration. However, that doesn’t mean that if a single man is running an enterprise or small-scale industry, he/she can’t apply.
The process of registration in the MSME Web Portal is as follows:
1) Fill the Application Form
You can fill the application form either online or offline. Fill in all the information required.
2) Prepare Documentation
3) Submit the Application
Once it is proven that you have all the documents available for registration, submit it. Submitting the papers take 2-3 working days.
4) Verification of Certificate
This is the final step of registration in MSME. After submission, the government will check it. Once all the verification work is done, the certificate will be disseminated to the candidate.
Eligibility Criteria for Registration in Web Portal MSME
To register in MSME Web Portal, a body or an individual must meet the eligibility criteria of MSME. According to the MSMED Act, the candidate needs to spend more than ₹20 Crore and the turnover must not be more than ₹100 Crore. The amount of turnover is stated in the Amendment in May 2020.
Loans provided by MSME
Some of the schemes related to MSME loans provided by the government:
- Credit Guarantee Scheme
- MUDRA Yojana under PMMY
- National Small Industries Corporation (NSIC) Subsidy
- Prime Minster’s Rozgar Yojana (PMRY)
Roles of MSME in Government Schemes
With the above-mentioned information, we can say that MSME plays an important role in the development of India. Those government schemes that are implemented with the motto of the economic growth of the country are supported by MSME. Some of them are:
Local For Vocal
The Local for Vocal theme is introduced to support the local products of India like earthen lamps (Diya), handicraft, cotton clothes, etc. MSMEs try to boost the Local Vocal theme in markets.
Atmanirbhar Bharat Abhiyan
There is no doubt that MSME promotes the Atmanirbhar Bharat Abhiyan of Prime Minister Narendra Modi. With the help of organisations such as the National Bank for Agriculture and Rural Development (NABARD), it promotes small-scale industries.
Under the Swachh Bharat Mission, the Government of India has celebrated Sewa Pakhwada in different states and cities. The main motto of this theme-based programme is to aware people to keep their society clean. MSME also promotes this mission of government.
Some Programmes by MSME
Under the Khadi and Village Industries Commission Act of 1956, KVIC is promoting khadi in rural areas. KVIC stands for Khadi and Village Industries Commission. The main aim of KVIC is to empower rural India economically.
This data (above) shows the Production and Sales of khadi from the year, 2019-22. As per the graph, the scheme has helped Khadi MSMEs (Artisians/ Institutions) to expand their business in the Indian market.
The data for the year 2022-23 is in updating stage.
National Small Industries Corporation Limited (NSIC)
The main of this corporation is to encourage the development of Small and Medium-sized Enterprises (SMEs) on a commercial basis in India. It provides a variety of support to micro and small businesses.
SFURTI means Scheme of Fund for Registration of Traditional Industries. It is a step taken by the Ministry of MSME to promote Cluster development (economic development of business cluster).
Likewise, there are many more schemes in the MSME web portal. To know all of them, you can scroll through the web portal of MSME.
GST Suvidha Kendra® is another golden opportunity for MSMEs to their profitable entrepreneurial dreams.