What is MSME?
As per the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 enacted by the Government of India, the definition of an MSME encompasses Micro, Small and Medium Enterprises.
What type of business comes under MSME?
- Companies in the manufacturing sector
Enterprises involved in the manufacturing or production of goods for an industry listed in the first schedule of the Industries (Development and Regulation) Act, 1951 are included within the scope of the MSME meaning.
Enterprises employing plant and machinery to add value to a finished product that results in a distinct name, use or character, come within the purview of the micro, small and medium enterprises.
- Companies in the service sector
MSME also extends to enterprises in the service sector. Enterprises are classified under the following sub-categories based on their annual turnover and investment in plant/ machinery/ equipment irrespective of whether they belong to the manufacturing or the service sector.
Micro |
Small |
Medium |
Investment not exceeding Rs. 1 crore and turnover of up to Rs. 5 crore |
Investment of not more than Rs. 10 crore and turnover not exceeding Rs. 50 crore |
Investment of not more than Rs. 50 crore and turnover of up to Rs. 250 crore |
If you run an MSME and need funding for business growth and expansion, avail high-value funding options like the MSME Loans from Bajaj Finserv. These are available on simple eligibility terms and require minimum documentation. Fulfil business requirements like infrastructure improvement, working capital infusion, plant and machinery installation, and more with an MSME loan of up to Rs. 45 lakh.
