Are you willing to know the detailed information about the Credit to Micro, Small and Medium Enterprises? Here is the article which provides you the clean and clear information about the Credit to Micro, Small and Medium Enterprises. These Micro-Small and Medium Enterprises are small sized entities, which defines the terms of their size of the investment and also they contribute significantly the output, employment export, etc in the economy.
The Credit to Micro, Small and Medium Enterprises Development Act, 2006, is a law with large Impact. The objective of the Act is that facilitates the promotion, development and also enhances the competitiveness of micro, small and medium enterprises and it is for matters which is connected therewith and incidental thereto. These also perform some of the critical roles in the economy by providing employment to a large number of unskilled and Semi-Skilled people by contributing the exports, raising manufacturing sector production and extending support to bigger industries by supplying raw materials, basic goods and finished parts and components, etc.
This sector produces more than 6000 Products contributing to about 8% of GDP(Gross Domestic Products) and besides 45% of the total manufacturing output and 40% of the exports from the country.
Classification of Credit to Micro, Small and Medium Enterprises, such as:-
- The Micro Enterprises spend about 25 lakhs for the Ceiling on Investment in Plant and Machinery.
- The Small Enterprises spend about 25 lakhs to 5 Crores for the Ceiling on Investment in Plant and Machinery.
- The Medium Enterprises spend about 5 crores to 10 crores for the Ceiling on Investment in Plant and Machinery.
For this service sector, the investment limit is Rs. 10 Lakh, 2 crores, and 5 crores in the terms of Investment which is made in equipment.
