MSME registration is an important and beneficial process to start any business. This is applicable for the manufacturing sector and service sector businesses. All medical services including Hospitals, Nursing Homes, Clinics are eligible for MSME registration. It is also known as Udyam Registration. MSME Registration can be done online, so let us understand the Benefits Of MSME Registration For Doctors.
Advantages Of MSME Registration For Doctors in India
After Udyam registration or MSME Registration, medical services including dental services & healthcare can avail of the benefits extended under MSME. MSME Registration for doctors is quite beneficial. These benefits are given below:-
- MSME registration is proof of Legal Existence for healthcare businesses and doctors. This is quite beneficial for Proprietorship Firms that do not have any other proof of existence.
- Financial institutions lend money at a lower rate of interest due to the MSME registration.
- It becomes convenient to finance Micro, Small, and Medium Enterprises. It comes under the Priority to medical services including dental services & the healthcare Sector to lend money as per the guidelines of the Reserve Bank of India.
- The Government of India has made collateral-free loans available to all small and micro-business sectors. After MSME registration, Healthcare units and doctors can claim these benefits.
Collateral Free Loans for Doctors through MSME Registration
The Ministry of Micro, Small, and Medium Enterprises Small Industries Development Bank of India jointly established a Trust. CGTMSE is contributed by the Government of India and SIDBI and Doctors have benefited from this.
Doctors can take Collateral free loans up to a limit of ₹ 100 lakh. Both old and new enterprises are eligible under the scheme. Candidates who fulfill the eligibility criteria may approach banks / financial institutions for a loan. All types of medical services extended by the medical fraternity will qualify to be classified as MSME as per the new definition by World Economic Forum, July 1, 2020. Maximum Guarantee where credit facility is Above 5 lakh up to 50 lakh, Above 50 lakh up to 200 lakh.
Benefits of MSME Registration during COVID-19
- It provided Emergency Credit Line to Businesses/MSMEs from Banks, NBFCs up to 20% outstanding credit as of 29.2.2020.
- A doctor can borrow up to Rs. 25 crore outstanding and Rs. 100 crore turnover of the healthcare organization
- Loans having 4-year tenor with the duration of 12 months on Principal repayment. Interest will be capped. 100% credit guarantee cover to Banks, NBFCs on principal and interest.No guarantee fee and no new collateral.
Furthermore, Exemption on Stamp Duty is one of the best benefits after MSME Registration for doctors. This concession is given by the State Governments. Also, this MSME Registration for doctors also allows property tax exemption as per eligibility criteria.
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