What is an MSME certificate? A guide for small businesses

If you own a small business, you may have heard of an MSME certificate. But, what is an MSME certificate and why is it important for your business? In this guide, we will explain what an MSME certificate is, how to download MSME certificate, and the benefits it offers for small businesses. Additionally, we will discuss how having an MSME certificate can help you secure a business loan.

Latest MSME Budget Updates in February 2025

• Investment limits: The investment and turnover limits for MSMEs will be raised by 2.5 times and 2 times, respectively

Types of enterprises and revised limits

• Micro and small enterprises: The credit guarantee cover has been increased from Rs. 5 crore to Rs. 10 crore, unlocking an additional ₹1.5 lakh crore in credit over the next five years
• Startups: The credit guarantee cover for startups has been raised from Rs. 10 crore to Rs. 20 crore, with a reduced 1% guarantee fee for loans in 27 key sectors under Atma nirbhar Bharat
• Exporter MSMEs: The term loan guarantee cover for well-performing exporters has been increased to Rs. 20 crore

Additional initiatives for the MSME sector in budget 2025

• Credit cards for micro enterprises: Customised credit cards with a Rs. 5 lakh limit will be introduced for micro enterprises registered on the Udyam portal, with 10 lakh cards planned for issuance in the first year
• Fund of funds for startups: The Alternate Investment Funds (AIFs) for startups, with a total commitment of Rs. 91,000 crore, will be further supported by a new Rs. 10,000 crore Fund of Funds, expanding its scope
• Scheme for first-time entrepreneurs: A new scheme will support 5 lakh first-time entrepreneurs from women, SCs, and STs, providing term loans of up to Rs. 2 crore over the next 5 years

What is an MSME certificate?

An MSME certificate is issued by the Ministry of Micro, Small and Medium Enterprises. It provides legal recognition to businesses that are classified as micro, small, or medium enterprises (MSMEs). The certificate helps businesses to access various government incentives and schemes.

In India, MSMEs constitute a significant portion of the Indian economy. They contribute to the growth of the economy by generating employment, creating new products and services, and promoting innovation. Recognising their contribution, the government offers various incentives and schemes to MSMEs to encourage their growth.

How to obtain an MSME certificate?

Here are the steps to follow to obtain an MSME certificate:

• Step 1: Visit the Udyam registration portal
• Step 2: Register your business by providing your Aadhaar number
• Step 3: Fill in the necessary details such as PAN and GST details, business name, location, and type of business.
• Step 4: Once the registration is completed, you will receive a unique Udyam registration number.

Benefits of having an MSME certificate

1. Enhanced market presence: Having an MSME certificate can boost your credibility, attracting more clients and partners.
2. Competitive advantages: An MSME certificate provides a competitive advantage in a crowded market. This recognition can set your business apart and attract more opportunities.
3. Access to priority lending: MSMEs often face difficulty in obtaining loans from banks due to a lack of collateral or credit history. However, most financial institutions offer priority lending to MSMEs with an MSME certificate. This means that they receive more favourable terms and lower interest rates.
4. Subsidies on trademarks and patents: MSMEs may sometimes face difficulty in protecting their intellectual property. The government offers subsidies on the cost of trademark and patent filings to MSMEs with an MSME certificate.
5. Government incentives and schemes: MSMEs with an MSME certificate can access various government schemes and incentives such as credit guarantees, subsidies on technology transfer, marketing, and infrastructure development.

How does an MSME certificate help you secure a business loan?

As a business owner, you might come across a time when you need to expand your operations, purchase new equipment, hire more employees, or manage cash flow challenges. Banks and financial institutions offer business loans to MSMEs based on their creditworthiness and repayment capability. If you have an MSME certificate, financial institutions can easily assess your creditworthiness and offer you more favourable terms.

Bajaj Finance offers business loans to MSMEs to help them grow and expand. With a Bajaj Finserv Business Loan, you can expand your business, purchase new equipment, hire more employees, and boost your revenue. Here are some reasons why you should consider applying for a business loan and the benefits it offers:

1. Large loan amounts: Depending on your business requirements and repayment capability, you can avail of large loan amounts of up to Rs. 80 lakh.
2. Easy application process: Applying for our business loan is quick and easy. You can apply online from the comfort of your home or office, and our team will get in touch with you to guide you through the process.
3. Competitive interest rates: We offer business loans at competitive interest rates. This means that you can borrow funds for your business needs at an affordable cost.
4. Flexible repayment tenure: Our business loans come with a flexible repayment tenure of up to 96 months. You can choose a tenure that suits your business needs and repay the loan with ease.
5. Minimal documentation: You can apply for our business loan with just a few documents, making the process faster and convenient.

Bajaj Finserv Business Loan is an ideal financial solution for businesses looking to grow and expand. With a quick and easy application process, competitive interest rates, and flexible repayment tenure, you can benefit from a Bajaj Finserv Business Loan. Additionally, with customised offerings and minimal documentation, you can choose the loan that best suits your business needs. So, apply for a Bajaj Finserv Business Loan today and take your business to new heights.