SME meaning - SME stands for Small and Medium Enterprises. The SME definition in India as per Section 7 of Micro, Small & Medium Enterprises Development Act, 2006 is based on the investment amount as per the sectors these cater to. The two types of SMEs- manufacturing and services, are classified as-
| Manufacturing sector | Service sector | |
|---|---|---|
| Small enterprise | Greater than Rs. 25 Lakh but lower Rs. 5 Crore. | Greater than Rs. 10 Lakh but lower than Rs. 2 Crore. |
| Medium enterprise | Greater than Rs. 5 Crore but lower than Rs. 10 Crore. | Greater than Rs. 2 Crore but lower than Rs. 5 Crore. |
The importance of SMEs is paramount in India as they contribute more than 24% to the services sector GDP and more than 6% to the manufacturing sector GDP of India as per CII. SMEs also account for around 45% of all exports in India and employ more than 120 million individuals. In India, there are more than 63 million registered and unregistered small and medium enterprises.
To support SMEs in raising capital to grow their business, Bajaj Finserv offers hassle-free SME Loan up to Rs. 30 lakh with minimal documentation and money in bank in just 24 hours.
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