UDYAM Certificate/MSME Registration

The enterprises which are registered under the scheme are eligible for certain benefits provided by the government. These are: 1. Preferential Credit (priority sector lending), differential rates of interest, etc. 2. Excise Exemption Scheme 3. Exemption under Direct Tax Laws 4. Statutory support such as reservation and Interest on Delayed Payments Act 5. Development of specialized industrial estates 6. Power tariff subsidies, capital investment subsidies and other support

Rate of Interests are lower for the registered ones as compared to other enterprises.Public sector banks are permitted to categorize their MSME general banking branches as specialized MSME brancheshaving 60% or more of their advances to MSME sector. This is to provide for a better service to this sector as a whole.