The Credit Guarantee Fund Scheme (CGS) for Micro and Small Enterprises was launched by the Government of India to make available collateral-free credit to the micro and small enterprise sectors. This initiative guarantees funds to micro and small sector enterprises. Under this scheme, both the old as well as the new enterprises can claim the benefits.

Under the MSME registration benefits, a buyer is expected to make a payment for the goods/services within 15 days of the purchase. If the buyer delays, the payment for more than 45 days, the enterprise is eligible to charge compound interest which is 3 times the rate notified by RBI.

Businesses or enterprises registered as MSME/SSI under the MSME Act are eligible to avail a benefit of 1% on the overdraft as part of the Credit Guarantee Trust Fund Scheme.

Business enterprises registered under the MSME Act are given a hefty subsidy of 50 per cent for patent and trademark registration. This can be availed by sending an application to the respective ministry.

An MSME Registered can avail concession on electricity bills. Registered MSME have to submit the bill along with the application and copy of registered Certificate

Registered MSMEs can claim the expenses for reimbursement that were spent on ISO certification.

Registered MSMEs can get Government tenders easily.

Registered MSMEs get exemptions under direct tax laws