In a move to strengthen the MSME sector and provide better financial aid, the ISO MSME reimbursement scheme has been expanded by the Government. This new scheme provides a one-time reimbursement to small businesses that have acquired the ISO 9000/ISO 14001/HACCP certification.
There has been an increased focus to provide financial aid to the MSME sector, as it is one of the largest contributors to the country’s GDP. With growth, comes an opportunity to scale international markets too.
To assist with this, the ISO MSME reimbursement scheme was expanded to help MSMEs and small businesses to seek ISO certifications to:
- Standardise their products
- Ensure they meet International quality standards
What is ISO MSME Reimbursement Scheme?
To understand this, we need to first know what an ISO (International Organisation of Standardisation) certification is:
An ISO certification is an international certification which ensures that company products adhere to international standards of quality. It conducts various quality assessment tests before issuing the certification to an enterprise.
ISO 9000: Deals with quality management and quality assurance
ISO 14001: Deals with Environment management
Why does your business need an ISO certification?
Since ISO certification complies with international standards, MSMEs which avail ISO certifications become competitive in national as well as international markets.
Availing an ISO certification, however, involves considerable funds.
The Development Commissioner of Small Scale Industries (SSI), Ministry of SSI and the Government of India offers a funding scheme for MSMEs to apply for this certification. That scheme is called the ISO 9000/ISO 14001 Certification Reimbursement Scheme.
The Scheme shall provide one time reimbursement only against a Permanent SSI registration Certificate.
Highlights of ISO MSME Reimbursement Scheme:
The ISO 9000/ISO 14001 Certification Reimbursement Scheme helps MSMEs obtain the specified ISO certification by providing them with financial aid.
- Any charges a small business incurs with the ISO-9000/ISO-14001 certification are reimbursed under the scheme
- Reimbursement limit is set up to 75% of the cost incurred in availing the certification subject to a maximum of INR 75,000.
- The reimbursement is a one-time offer once the business provides an Entrepreneurship Memorandum Number.
Can your business apply?
To apply for this scheme, your business must fall in the eligibility criteria. Your business is eligible if it is a permanently registered small scale service which has already acquired the ISO-9000/ISO-14001/HACCP certification.
Businesses can avail the scheme by filling up an application form and submitting the form with their documents to the DC-MSME website.
Similar to the ISO certification reimbursement scheme, the government and RBI have worked together to provide different MSME schemes in 2019. Some of them are:
- Initiating foreign lending prospects with International lenders for MSMEs
- Removing all charges from NEFT and RTGS transactions
- Providing cheaper loans for MSMEs through reduced repo rates
- Introducing GST Benefit for Businesses Using QR Codes to make payments.
Do you think the scheme will be good for the MSME sector in the long run? Let us know in comments.