Government includes Retail and Wholesale trade under MSME is a piece of good news for the industry. This news was announced on 2 July 2021. As a result, Retail and Wholesale traders feel hopeful for the promising opportunities that MSME Registration provides. Earlier, MSMEs excluded them under MSME Development Act, 2006 in 2017.
Therefore, everyone needs to understand this new update plus MSME Registration in detail. In this article, we will read about it in detail.
Retail and Wholesale trade under MSME
The government was receiving multiple requests from the Retail and Wholesale trade industry to include them in MSME(Micro, Small and Medium Enterprises) for a long time.
The reason is MSME Registration provides several advantages to any business under MSME Development Act.
Therefore, the government made a decision and now announced that Retail and Wholesale trade under MSME is eligible to get Udyam Registration.
However, it is important to note that benefits to retail and wholesale trade under MSMEs might be restricted to priority sector lending only.
Impact on Retail and Wholesale Trade under MSME
The new announcement will positively impact retail and wholesale trade. The reason businesses upto Rs. 250 Crore in retail and wholesale sector are now eligible to get immediate-term finance under “AtamNirbhar Bharat”.
Consequently, it will benefit 2.5 crore retail and whole traders. Furthermore, they will be able to register on UDYAM Portal after getting MSME or UDYAM Registration. However, traders might also get other benefits under other schemes of MSME.
Understand the Priority Sector Rules.
Commercial banks are required to lend 40% of adjusted non bank credit or credit comparable amount of off-balance-sheet exposure to farmers, MSMEs, and weaker sectors under priority sector regulations. Furthermore, Small businesses must receive 7.5 per cent of the total. As a consequence, it acts as a huge relief for MSMEs.
Know About Udyam or MSME Registration
MSME Registration is mandatory if one wishes to receive benefits from the national or state governments and the banking sector. The Ministry of Micro, Small, and Medium Enterprises supervises it under MSME Act 2006 in India.
Udyam Registration provides several benefits. For instance, the low-Interest rate on loans, faster loans, Credit Support Schemes, the low registration fee for Trademark Registration, etc.
Advantages of MSME Udyam Registration
There are many benefits from the Government as well as the banking sector for MSMEs. Some of the most important ones are as follows.
- Low-Interest rate
- Easy loan in 59 minutes
- No delayed payment
- Tender Eligibility
- Credit Support Schemes and Low in Trademark Government Fees
In short, MSME or UDYAM Registration is a government scheme to facilitate small and medium businesses through several methods.
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