What Is Udyog Aadhaar Registration?
Udyog Aadhaar registration – If you are a small and medium sized business owner or having small scale industries, then Government of India lets you apply for it and provides a certificate with 12 digit identification number at FREE of cost by the ministry of MSME(Micro, Small & Medium Enterprises).
What is difference between Udyog Aadhar & MSME?
Earlier, Udyog Aadhar used to be referred to as MSME registration. Now, the whole process of obtaining MSME registration is been converted to Udyog Aadhar registration. There is no difference.
What is the eligibility criteria or who can apply for it?
Any micro, small, medium business owner who is selling or providing services or manufacturing products can apply and get the Udyog Aadhaar certificate. Here is a pictorial chart for them who are eligible or comes under Udyog Aadhar.
What are the key benefits of Udyog Aadhar?
Government of India gives benefits of having Udyog Aadhaar certificate includes – easy sanction of bank loans (Priority sector lending), lower rates of interest, excise exemption scheme, exemption under Direct Tax Laws and statutory support such as reservation and the interest on Delayed Payments Act.
Can I get or eligible for Udyog Aadhar or MSME loans?
An established business that has been in operations for more than 6 months. A minimum turnover of Rs. 90,000 or more in the 3 months preceding your loan application. Criteria – the business should not fall under blacklisted or excluded list for SBA finance. MSME loans are offered to Micro, Small and Medium Enterprises (MSMEs) by financial institutions that include banks and NBFCs. MSME loans are also offered by government with the help of various schemes which are further discussed. Government Schemes that come under MSME loans – Mudra Loan, CGTMSE(Credit Guarantee Funds Trust for Micro and Small Enterprises), PMEGP, etc. These schemes ensure that the new and existing entrepreneurs in the country get the necessary financial support and funding for their businesses.
MUDRA (Micro Unit Development and Refinance Agency) loan is introduced to provide support to the small business owners. MUDRA yojana is further classified between three categories named as Shishu, Kishore and Tarun.
Loan amount offered- The scheme has three categories under which loans are disbursed:
- Shishu – For loan amount up to Rs. 50,000
- Kishor –For loan amount from Rs. 50,001- Rs 5 lakh
- Tarun – For loan amount more than 5 lakhs and up to Rs 10 lakh
What are MSME or Micro, Small & Medium Enterprises ?
Definitions of Micro, Small & Medium Enterprises In accordance with the provision of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the Micro, Small and Medium Enterprises (MSME) are classified in two Classes:
- Manufacturing Enterprises– The enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the industries (Development and regulation) Act, 1951) or employing plant and machinery in the process of value addition to the final product having a distinct name or character or use. The Manufacturing Enterprise are defined in terms of investment in Plant & Machinery.
- Service Enterprises:-The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment.