All About SME Sector in India
On the 22nd of August, 2019, Nitin Gadkari, the Minister of Road and Transport and MSME announced the plan to launch Bharat Craft for Micro, Small and Medium Enterprises (MSME). Gadkari envisions this portal to compete with global giants, such as Amazon and Alibaba. He made this announcement at an NSE Event, where 200th SME Company, Wonder Fibromats was to be listed on NSE Emerge, the SME Platform powered by NSE. Amidst, the news of the slowing economy and job cuts in Parle, it is the SME and MSME Sector that is a glimmer of hope for the Indian economy.
Read moreMSME Registration: What is it, and How to get it?
Wondering how to gather funds for your business venture? Don’t you worry! The Government of India has set up a branch that funds micro, small, and medium enterprises known as the Ministry of Micro, Small and Medium Enterprises or MSME. As per the Micro, Small & Medium Enterprises Development (MSMED) Act, 2006, MSME are categorized into two classes, manufacturing enterprises and service enterprises. This was the older classification system. A new bill was introduced by Giriraj Singh, former Minister of MSME, in 2018. Many changes were incorporated in the existing MSMED Act 2006. The criterion for the classification of MSMEs
Read moreWho Can Apply For MSME Registration?
In case you have been wondering whether your business entity can go for MSME registration or not, you are at the perfect place. Before we dive deep into the eligibility for MSME registration, let’s first quickly understand what MSMEs are. MSME stands for Micro, Small and Medium Enterprises. They are such a vital part of India’s developing economy that the government of India has created a separate ministry to support and promote MSMEs. Through the MSMED Act, 2006, the Indian government provides special benefits to the MSMEs in the form of cheaper loans, tax benefits, and various schemes and subsidies.
Read moreWhat Is An SME Sector & What Are The Challenges Faced By It?
The Small and Medium Enterprises (SME) sector plays a major role in today’s Indian economy. Though small in size, it caters majorly in generating employment and driving the country’s economic health. Let’s take a closer look at the meaning and progress of SMEs in India. What is an SME? In simple terms, an SME is a business that has limited employees, assets, and revenue. The limit is defined by the government and is amended from time to time to be in sync with changes in the economy. In 2018, it was amended to the Micro, Small and Medium Enterprises Development
Read moreCollateral-free Business Loans: Everything You Need To Know
Collateral is an assurance a loan lender gets from the borrower in the form of an asset which can be land, house, or machinery. Banks offer loans and in return, always ask for collateral as a way to mitigate the risk, in case a borrower fails to pay back the amount. The amount of loan which is sanctioned by the banks is directly proportional to the value of the collateral offered. But small businesses can’t always afford to provide collateral which in turn makes them ineligible for an SME finance. But there’s a way out now, i.e. collateral-free business loans
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