Financial Benefits

• Collateral-Free Loans:Registered MSMEs can easily get loans from banks without having to provide any collateral. 
• Lower Interest Rates:Banks offer lower interest rates on loans to MSME-registered businesses. 
• Credit Guarantees:There is an enhanced capacity to receive credit guarantees for businesses. 
• Subsidies:Businesses can get subsidies on expenses related to obtaining product certifications and can apply for a subsidy on patent and trademark registration fees. 

Tax and Regulatory Benefits

• Extended Tax Benefits:

MSME-registered businesses can benefit from extended tax benefits, which can include exemptions under Direct Tax laws. 

• Stamp Duty Exemption: 

All new MSME units and their expansions are exempted from paying Stamp Duty and Registration fees. 

• Streamlined Licensing:

The registration process simplifies the procedure for obtaining various licenses and approvals. 

Government and Market Access

• Preferential Treatment in Government Tenders:

Registered MSMEs get quicker and easier access to exclusive government tenders. 

• Priority Sector Lending:

MSME loans fall under the Priority Sector Lending guidelines issued by the Reserve Bank of India, making it easier to secure funding. 

• Protection from Delayed Payments:

The registration provides a platform for MSMEs to seek redressal against suppliers who make delayed payments to them. 

• ISO Certification:

MSMEs can receive ISO certification for free or at a reduced cost, enhancing their credibility. 

Other Benefits

• Technical Support:

MSMEs can receive training and management development support through various programs offered by the government. 

• Enhanced Credibility:

The Udyam Registration certificate enhances the credibility and recognition of the business.