Survival and sustenance of any economy primarily depend on the industries and their performance in any country. In India as well, the very survival and nourishment of the economic parameter rely significantly on the enterprises operating at different scales of economies. While some business houses operate on a large scale, some run on a small scale.
Also, some of the industries survive as ancillaries to the big giants. Hence, the nexus of companies operating under an industry is complex and multidimensional. To make sure that even the weakest one of the hierarchy receives equal attention and support amidst the COVID pandemic situation, the Government of India announced a COIVD relief package worth Rs. 20 Lakh Crores for MSMEs.
MSMEs are the companies operating on a micro, small, or medium scale. The difference between these companies and their inclusion in either category depends on the annual turnover and investment of the company in concern.
Any economic stimulus package aims at the revival of the ongoing industries. GOI has taken into consideration the vulnerability of the small business firms in the face of the global pandemic and has provided for a beneficial and inclusive Rs. 20 Lakh Crore package aimed at revitalizing the MSMEs in general and the service industry in particular.
To know more about the MSME loans, you can consult the top GST Consultants in Delhi. Here is what you need to know about the MSME loans to reap the benefits.
Service Industry-An Overview
With multiple varieties of works delivered by different business organizations, the nature of the enterprise can be divided into several categories. One of these categories is the service industry. Over the last few years, this industry has earned much fame in the market owing to its ability to communicate with the customers directly and making impactful business progresses.
Conventionally, the service industry is composed of those enterprises that connect with the customers directly and do not involve in acts of manufacturing in any way. However, at times, the service industries might offer related products useful for the customers or for augmenting the service provided to the customers. As per the vocabulary of economics, the service industry belongs to the tertiary sector, which is gaining importance, globally.
To trim down the negative impact of the pandemic situation, GOI has introduced the dynamic and inclusive relief package plan in the form of MSME loans for factories, which will now include more companies than before with its relaxed definition. To know whether or not your business belongs to the service sector and qualifies for the MSME loans offered the government, you can always take the opinion of the top financial advisor in Delhi.
Wholesale trading, retail trading, financial services, insurance, banking, real estate, transportation, public administration, communication are some of the examples of industries included in the service industry. If your business does not belong to one of these, check with an expert to know if you can avail the service industry benefits offered under the COVID relief package announced by GOI or not.
If you think that you do not need an expert to guide you through the process of applying for MSME loans, here are some reasons that will make you realize that you do. Check the following aspects carefully and decide accordingly.
Knowing the Process Well
Before you apply for an MSME loan, you must know thoroughly about its offerings and repayment details. Since the Government of India has recently changed the definition of MSMEs and the process involved with sanctioning of loans to the MSMEs, you might experience a knowledge gap while applying for it.
Especially for the service industry, the norms have been revised, and only an expert in the field can guide you adequately, ensuring no missed out opportunities. Hence, taking the advice of a direct tax consultancy can be a smart move on any business firm’s part.
As the definition of MSMEs has changed after the declaration of the economy booster package of Rs. 20 Lakh Crore by GOI, you first have to be sure whether or not your business is still counted under an MSME. Only an expert can guide you to comprehend the same and help you in applying for the best loans available. Consult the chartered accountants in Delhi NCR and be sure of what you are opting for.
An expert opinion is a must when it comes to choosing the best offer available for you. The latest COVIS packages for the MSME sector announced by the government contains several laterals and dimensions that only an expert can understand the best. Hence, try consulting an experienced financial advisor before opting for the service sector MSME loans.
Here are some of the benefits that the service industry can look forward to by availing the MSME loans.
- Some of the financial institutions offer loans on relaxed terms that make repayment schedules easier for companies. SIDBI MSME loansprovide the companies a much-relaxed term of loaning.
- Although traditionally, keeping a mortgage is the norm for taking a loan, collaterals are sometimes not required for the MSME loans. The collateral free loansencourage more people to avail the loans, and the industry gets boosted sooner.
- The procedure of the MSME loan process is easy and requires minimum documents. Therefore, the complexity of the method does not become a hindrance to loan applicants. Hence, more companies opt for loans to rejuvenate the economy in the long run.
MSME loans are an excellent way of making sure that the small scale operators stay afloat during the economic crisis. Especially the service industry that lives on people’s participation in monetary exchanges suffers a lot when the money pumping into the system gets reduced.
Consult the expert chartered accountants in Delhi NCR to know more about the provisions made by GOI and keep your business running regardless of the negative impacts imposed on the market by the pandemic.