What is the definition of MSME?

The Government of India has enacted the micro, Small and Medium Enterprises Development (MSMED) Act, 2006 in term 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 in 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.1772(E) dated October 5, 2006

Enterprises engaged in providing or rendering of service and whose investment in equipment (original cost excluding land and building and furniture, fittings and other items not directly related to the service renderd or as may be notified under the MSMED Act, 2006 are specified below

1. A micro enterprise in an enterprise where investment in equipment does not exceed Rs.10 lakh;

2. A small enterprise is an enterprise where the investment in equipment is more than Rs.10 lakh but does not exceed 2 crore; and

3. A medium enterprise is an enterprise where the investment in equipment is more than 2 crore but does not exceed Rs.5 crore.

  • Loan are available from 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
Top