BCL India SME Centre

Both manufacturers and service providers qualify as SMEs. This depends on their investment in plant and equipment

Investment cap for qualification of manufacturers is as follows
Micro - upto Rs. 25 lakhs
Small - upto Rs. 500 lakhs
Medium - upto Rs. 1,000 lakhs

Limit shall be Rs. 10, Rs. 200 and Rs. 500 lakhs respectively for service providers

SMEs can borrow funds from banks without collateral up to a sum of Rs. 200 lakhs. Though unsecured, these loans come with competitive interest rates.
In addition, SMEs benefit from protection under law vis-a-vis their receivables. The MSMED Act mandates that all dues to SMEs should be settled within 45 days. Delays beyond this date attract penal interest.

The Ministry of Corporate Affairs (MCA) requires all companies that owe money to SMEs beyond 45 days to report the quantum of dues with reasons for delay through Form MSME-1. This half-yearly return requires reporting of SME over-dues on 30-Sept. and 31-Mar. of each year.

Our experience with SMEs tells us how important cashflows, how thin profit margins are and how fierce the competition in the industry is. We would be delighted to put our experience to play to help your business succeed - be it by preparing a project report for you or getting your collateral free loan!

Feel free to reach out to us. It would be our privilege to serve you!