Management Co. Ltd. Kotak Securities Ltd.
- Institutional Equities KMCC - Investment Banking KIAL - Private Equity KIAL - Realty Fund KMPL - Car loans KMIL - LAS, CRE & Corporate loans Kotak General Insurance
Download link for the app has been successfully sent to 9999999999
Local call rates apply
The Micro, Small & Medium Enterprises [MSME] sector has been recognized as the engine of growth. SME in India contributes to 40% of gross industrial output and 45% of total exports and is second largest employer after agriculture. The development of SME has been assigned an important role in national plans. Commercial Banks are advised from time to time by GOI and RBI to finance liberally to MSMEs. Lending to Micro & Small Enterprises qualifies for PSA.
As per the provisions of Micro, Small and Medium Enterprises Development [MSMED] Act 2006, MSME are classified into two classes.
The enterprises engaged in production of goods pertaining to any industry. These are defined in terms of investment in plant & machinery.
Enterprises engaged in rendering services and are defined in terms of investment in equipment.
|Category||Investment ceiling on original cost|
|Micro [mfg] Enterprises||Does not Exceed Rs.25 lakhs [in plant & machinery]|
|Small [mfg] Enterprises||> 25 lakhs < = Rs.5 Cr.( [in plant & machinery]|
|Medium [mfg] Enterprises||> 5 Cr. < = 10 Cr. [in plant & machinery]|
|Micro [Service Enterprises] sector||Does not exceed Rs.10 lakhs [in equipment]|
|Small [Ser] Enterprises||>10 lakhs < = 2 Cr. [in equipment]|
|Medium [Ser] Enterprises||> 2 Cr. < = 5 Cr. [in equipment]|