Benefits & Schemes for MSME During COVID-19

The micro, small, and medium enterprises and the groups of people who are associated with it are suffering the most during this pandemic of COVID-19. The micro, small and medium enterprises or MSMEs are the small sectors of business which can be considered responsible for the propagation of the middle scale economy of any country. There are many enterprises that are presently contributing to the economy of every country. These enterprises are responsible for carrying forward the basic economy of an entire country. The apparent contribution of this kind of business might not appear to be crucial, but the overall contribution to the country's economy by micro, small, and medium enterprises cannot under-estimated at any cost.

Presently due to the onset of the pandemic of COVID-19, many issues are being faced by micro, small, and medium enterprises. Since a lockdown situation is going on all over the world, these enterprises are facing loss and trying to recover as much as they can. One cannot blame the present situation, but relative measures should be taken to assist the owners of the micro, small, and medium enterprises. These are the small business types that are facing the highest losses and soon after the lockdown is over, the world will realize that the backbone of the economy is completely ruined.

Schemes to be provided to MSME during COVID-19

In India, the Ministry for Micro, Small and Medium Enterprises has declared that the scopes for this kind of business will be revised and re-thought about. Decisions will be taken to ensure that the owners of these businesses do not suffer much.

Certain Loans to be Provided: It has been decided by the government to provide certain loans which will prove to be helpful for micro, small and medium enterprises. These loans will have a very low rate of interest and they will be extended over a long period of time for the owner to pay back. This can prove to be very helpful after the lockdown. There will be no ready cash available for the owners to pay the employees after the pandemic passes over. They will have to turn to the government for assistance. In this case, the government can provide these loans to help the owners.

Storage by RBI: The recent plans which have been put forward by the Reserve Bank of India or RBI have stated that a certain amount of the country's economic storage will be kept for the owners of micro, small and medium enterprises. This quota of storage will be invested for the well-being of micro, small and medium enterprises. The amount will be spent to reorganize the business of the MSMEs after the lockdown lifts.

Proposal for Increasing Loan Limit: There have been several proposals for increasing the loan amount for the businessman who has already applied and received previous loan values. This is because the lockdown period has determined that there will be no new profit for these businesses and there will be a huge amount of capital expenditure. This will ensure the loss of two possible aspects for a particular businessman. To cover up these losses, the government will provide extra loans to the owners of MSMEs. It is to be accounted for, only those who have faced serious losses during the lockdown period are eligible for this kind of loan activities. Everyone in the business cannot apply for the same criteria. The criteria must be classified very accurately to locate the owners who need the help of the government to sustain their business.

Several new benefits will be soon revealed

The ministry has held several meetings since the beginning of this long period of COVID lockdown and has announced several relief measures for MSME to decide the fate of the owners of micro, small and medium enterprises. The economists are asked to deviate a certain kind of strategy which can help to support the owners of MSMEs. As the lockdown lifts, the government has to find several other options which can be helpful to such small businessmen.

It must be kept in mind that small business sources are the backbone of any country's economy. They are the shops where the middle class prefers to shop from. They are the ones who are responsible for buying goods from manufacturers and wholesalers. In other words, MSMEs are the most important sectors of common business.

Few final words

These are some major schemes which are being talked about by the government of India for the owners of the micro, small and medium enterprises. There are several other factors that must be accounted for while considering the needs of these kinds of businessmen. The consumers are mostly dependent on small scale businessmen to avail of their required goods.

If we are able to sustain their businesses, they will be very useful in the revival of the basic economy of the country. For those who are soon going to apply for MSME, this is the best time you can apply for it. Just fill the application form on msmeregistrar.org and you are good to go. The names of the small scale businessman must be classified as a crucial segment of the discussion by every country during this logon period of pandemic COVID-19.