The Scheme will cover discounting of bills arising out of genuine trade transactions i.e. supplies made by Micro, Small and Medium Enterprises (MSMEs) to reputed Public Limited Companies / State and Central Govt. Departments / Undertakings / Private Limited Companies (not traders), engaged in manufacturing / service activities.
SELLERS:
Micro, Small & Medium Enterprises engaged in manufacturing / service activities (Traders will be excluded).
BUYERS:
GRANT OF PURCHASER-WISE LIMITS:
Purchaser unit may approach NSIC for sanction of annual limits by furnishing information as per the prescribed application form. Purchaser unit should also provide details about the MSMEs who are supplying the goods/services to purchaser unit. Bills (Bill of exchange) drawn by MSMEs for the supplies made by them and duly accepted by the Purchaser will be discounted against security of Bank Guarantee to be provided either by the Buyer or Seller, in favour of NSIC.
GRANT OF SELLER-WISE LIMITS:
Bills (Bill of exchange) drawn by MSMES against their supplies made, duly accepted by the purchaser will be discounted. Annual limits can be fixed for such units by obtaining information as per the prescribed application form
PERIOD OF USANCE OF BILLS TO BE CONSIDERED FOR DISCOUNTING:
The maximum usance period of the bills (Bill of Exchange) shall not exceed 180 days.
SECURITY:
DISCOUNTING CHARGES : Effective from 01.12.2023:
Particulars | Effective Discounting rate (% per annum) | |
---|---|---|
Normal Interest | Micro | Small & Medium |
A. Upto the Usance period | ||
(i) Units having valid SME 1 rating | 8.00 | 8.75 |
(ii) Units having valid SME 2 rating | 8.50 | 9.25 |
(iii) Other Units | 9.00 | 9.75 |
Additional rate of interest (over and above the normal rate of discounting charges) on delayed payment in case of payment is not received on the due date of Bill of exchange would be as under: | ||
In case payment is not realized as per original usance (period) of the Bill of Exchange | Additional rate of interest at 1.25% per quarter for overdue period. |
PROCESSING FEE:
The processing fees on all the proposals sanctioned and / or disbursed under this scheme will be applicable as mentioned below:
Processing Fee | Micro | Small & Medium |
---|---|---|
On new sanctions | 1.00 % P.A. | 1.00 & P.A. |
On renewal | 0.50 % P.A. | 1.00 & P.A. |
Description | File |
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Bill Discounting Scheme | View |
Application Form | View |
List of documents to be enclosed with Application Form | View |
Updated: 11.12.2023