What is the definition of MSME?
The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 in terms of which the definition of micro, small and medium enterprises is as under: .Enterprises engaged in the manufacture or production, processing or preservation of goods as specified below: 1. A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs. 25 lakh; 2. A small enterprise is an enterprise where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore; and 3. A medium enterprise is an enterprise where the investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore.
In case of the above enterprises, investment in plant and machinery is the original cost excluding land and building and the items specified by the Ministry of Small Scale Industries vide its notification No.S.O.1722(E) dated October 5, 2006
- Loans are available from Rs 3 lac to 10 lac
- Repayment tenures from 12 months-36 months
- Simplified documentation.
- Simple procedure, minimal documentation and quick approval
- Secured against mortgage over marketable real property