These days, more and more young adults are giving up attractive corporate careers to become entrepreneurs with innovative start-up ideas. Micro, small, and medium enterprises (MSMEs) contribute to the country’s Gross Domestic Product (GDP). Therefore, the government offers several schemes for the benefits of the MSMEs and to boost their growth. The National Small Industries Corporation (NSIC) is a government enterprise for the development of the MSME sector.
However, people are generally confused about these acronyms. So, to give you a clear idea, here are the differences between the two.
NSIC was created in 1955 to promote and support the MSMEs and has multiple offices and technical centers across India. In comparison, the MSME sector is regulated under the Micro, Small, and Medium Enterprises Development Act, 2006 and supports MSMEs via different incentives, schemes, and subsidies.
MSMEs and SMEs are important for the economic growth of India. Collateral-free SME loans from financial institutions are available under the Credit Guarantee Fund Scheme. Additionally, these enterprises enjoy a 1% exemption on the bank overdraft interest rates.
On the other hand, the government aids NSIC-registered companies while procuring raw materials from government agencies as well as national and international vendors. Moreover, these companies can seek assistance from banks to avail of credit facilities.
You can register your company on the NSIC portal under the Single Point Registration Scheme for Government Purchase (SPRS) along with the required documents. You also need to physically submit the documents for verification at the branch office. Once the details are verified, you will be issued the Registration Certificate.
To register your MSME, you must visit the online portal and provide the 12-digit Udhyog Aadhar Number. After providing the Directors’ details, you can generate a one-time password (OTP) for validating the Aadhar. The next step is to input details, such as name and type of organization, registered address, current account, the value of plant and machinery, and much more. After verifying all the information, the ministry issues the MSME certificate.
SMEs and MSMEs make a significant contribution to the economy. Financial institutions like Mahindra Finance offer affordable SME loan interest rates to boost the growth of such businesses. Availing of funds can help them meet various short- and long-term capital requirements. Businesses can also apply for equipment finance and industrial project financing. Moreover, minimal SME loan documents are required, which ensures the process is quickly completed without any hassles.
You can customize a business loan based on the requirements of your business and the financial situation of the company. To know more about the SME loan eligibility criteria, visit the official website of Mahindra Finance today.