The Ministry of Micro Small and Medium Enterprises (MSME) was set up in the late 1940s as a vocational training center. The primary function then was to provide a means of employment for people who were displaced because of the partition. Later, the Micro Small and Medium Development (MSMED) Act came into being in 2006 and MSME was converted into an umbrella organization that dealt with policy decisions regarding all the Small and Medium sector undertakings. As of 2016, the statistics show that there are 51 million SMEs working out of India while employing close to 117 million people. They also contribute to 45% of the total manufacturing output of all of India. It would be an understatement to say that the SMEs are crucial for India’s development path. Although multiple steps like the MSMED Act were introduced to inject finance into the SMEs over the years, it still remains very hard for small businesses to get funding for their dream projects. Here is a look at how to go about the process.
This is why KredX offers the collateral free working capital but with fund access that ranges from 24 to 48 hours. Often, the disservice that is red tape would mean long standby periods which can prove disastrous for your business ventures. KredX solves these problems by providing you access to funds with the most minimal documentation, and the least stress. These collateral free loans can be a big lift for your business ambitions and help expand or bring about your dream projects.