Under ‘The Micro, Small, and Medium Enterprises Development Act, 2006’ (MSMED Act’ 2006), enterprises both manufacturing goods or providing services having a capital investment outlay as provided under the act can register under this act in various categories like Micro, Small and Medium Enterprises depending upon their capital investment outlay.
The registration under the act provides various benefits, like subsidies and concessions from the government, assured government tenders, collateral-free loans, concession in bank loan interest rates, and one of the most important benefit is speedy and hassle-free debt recovery mechanism as provided under the act.
Enterprises either manufacturing goods or providing services can file for recovery of their debt after 45 days it was due. Which is recoverable usually within a period of 90 days along with an interest three times the rate prescribed by RBI, without getting into the complication of court procedure.
The PGA team has advised clients on various aspects of MSME law, particularly on beneficial banking regulations for MSMEs including collateral-free loans. We have also drafted and reviewed loan documents for many of our clients. Along with assistance relating to registration and debt recovery, to a variety of clients.