MSME or Udyog Aadhaar

Regarding MSME- Registration under MSME (Micro, Small and Medium Enterprise Development Act, 2006) is required to take benefit under the COVID-19 declared Scheme by Finance Minister Madam Nirmala SItharaman.She said- “Emergency Credit Line to Business/ MSMEs from Banks and NBFCS up to 20% of entire outstanding credit as on 29/02/2020 will be available.

This will be available to borrowers with up to Rs. 25 crore outstanding and Rs. 100 crore turnover. The tenor is of 4 years and with 12 months of moratorium on principal repayment. Interest to be capped. 100% credit guarantee cover to banks and NBFCS on principal and interest. The scheme can be availed till October 31, 2020. There will be no guarantee fee and collateral.”

But to get benefit of this registration under MSME (Micro, Small and Medium Enterprise Development Act, 2006) / Udyog Aadhar is must.