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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
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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
Type of enterprise Revised investment limit Revised turnover limit Micro enterprises From Rs. 1 crore to Rs. 2.5 crore From Rs. 5 crore to Rs. 10 crore Small enterprises From Rs. 10 crore to Rs. 25 crore From Rs. 50 crore to Rs. 100 crore Medium enterprises From Rs. 50 crore to Rs. 125 crore From Rs. 250 crore to Rs. 500 crore - 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
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- 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?
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You can obtain an MSME certificate by completing free Udyam registration through the Udyam Registration Portal, and the process typically takes around 5 minutes if your details are ready.
- Visit the Udyam registration portal. Start your Udyam registration on the official Government of India portal using your Aadhaar-linked details.
- Register using your Aadhaar number. Enter the Aadhaar details of the proprietor, partner or authorised signatory, as applicable, to begin the registration process.
- Provide your business information. Enter the required details, including your PAN, GST details (where applicable), business name, business location and type of business.
- Submit the application and receive your Udyam registration number. Once registration is complete, a unique Udyam registration number is generated, which serves as the identifier on your MSME certificate. You can download the certificate immediately from the portal. No physical inspection or document upload is required, as registration is based on self-declaration.
After successful registration, your MSME registration certificate is issued electronically and is available for immediate download from the Udyam registration portal.
Benefits of having an MSME certificate
If you are wondering what is the use of MSME certificate, the biggest advantages are easier access to priority business credit, eligibility for government subsidies and schemes, and legal recognition that enhances your business credibility. An MSME registration certificate also improves access to several government initiatives designed to support small businesses.
| Benefit | What it means for your business |
|---|---|
| MSME registration certificate for priority lending | Eligible businesses may receive preferential loan terms from banks and NBFCs and can access government-backed credit guarantee cover of up to Rs. 10 crore under applicable schemes. |
| Trademark and patent subsidies | Eligible MSMEs can avail a 50% subsidy on trademark filing fees and may also receive financial support for patent registration costs under applicable government schemes. |
| Access to government schemes | Registration enables businesses to apply for schemes such as CGTMSE, PMEGP and other technology development and business support programmes, subject to eligibility. |
| Improved market credibility | Legal recognition as an MSME strengthens business credibility, improves eligibility for government procurement opportunities, including the GeM portal, and can enhance customer confidence. |
| Tax and other incentives | Registered MSMEs may qualify for certain state-specific tax concessions and other incentives, depending on the applicable government policies and eligibility conditions. |
If you are planning to expand your business after obtaining an MSME certificate, Bajaj Finance offers business loans with flexible funding options to help meet your growth requirements.
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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 Finance 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:
- Large loan amounts: Depending on your business requirements and repayment capability, you can avail of large loan amounts of up to Rs. 80 lakh.
- 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.
- 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.
- 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.
- Minimal documentation: You can apply for our business loan with just a few documents, making the process faster and convenient.
Bajaj Finance 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 Finance 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 Finance Business Loan today and take your business to new heights.
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Frequently Asked Questions
Overview
How long does it take to get an MSME registration certificate?
You can get your MSME registration certificate in approximately 5 minutes if your application is completed successfully on the Udyam portal. After completing the Udyam registration process with valid Aadhaar and business details, the certificate is generally generated online and is available for immediate download.
Is an MSME certificate mandatory for small business registration?
No, an MSME certificate is not mandatory for small business registration. However, it is required or highly beneficial for accessing certain government schemes and benefits. For example, Udyam registration is generally needed to avail of benefits under schemes such as CGTMSE, register on the GeM portal, and apply for PMEGP subsidies, subject to the respective scheme guidelines.
Can I get an MSME certificate for my online or service-based business?
Yes, you can get an MSME certificate for an online business if your enterprise meets the eligibility criteria for Udyam registration. Udyam registration is available for manufacturing, trading, and service enterprises, including online businesses and service providers. A commercial office or physical business premises is not mandatory, provided you furnish the required business details during registration.
Is MSME registration certificate required to apply for a business loan?
An MSME registration certificate is not always required for bank loans, but it is generally required for loans backed by the CGTMSE guarantee scheme, which provides guarantee cover of up to Rs. 10 crore, subject to the scheme guidelines. Eligible businesses can also apply for a Bajaj Finance Business Loan, where documentation requirements depend on the product and applicant profile. You can check your eligibility online using the OTP-based application process.
Is MSME registration certificate required for bank loans?
No, an MSME registration certificate is not universally required for bank loans, but it is strongly recommended because it improves access to several MSME-specific lending schemes and government benefits. Udyam registration is generally required to avail of the CGTMSE scheme, which offers credit guarantee cover of up to Rs. 10 crore, subject to the scheme guidelines. While eligibility and documentation vary by lender, having an MSME registration certificate can strengthen your loan application. Eligible businesses can also apply for a Bajaj Finance Business Loan of up to Rs. 80 lakh. Check your eligibility online and apply through the simple digital process.
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