Due to the MSME registration, the bank loans become cheaper as the interest rate is very low around ~ 1 to 1.5%. Much lower than interest on regular loans. There are various tax rebates offered to MSME. It also allowed credit for minimum alternate tax (MAT) to be carried forward for up to 15 years instead of 10 years There are many government tenders which are only open to the MSME Industries. They get easy access to credit.
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