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NSIC - National Small Industries Corporation
NSIC - Facilitating the Growth of Small Enterprise Since 1955    

MSME Mart






Last updated date - 8/2/2015
 
 
 
Raw Material Assistance
 

Raw Material Assistance Scheme aims at helping MSEs by way of financing the purchase of Raw Material (both indigenous & imported). This gives an opportunity to MSEs to focus better on manufacturing quality products.


Benefits of the Scheme

  • Financial Assistance for procurement of Raw Material upto 90 days.

  • MSEs helped to avail Economics of Purchases like bulk purchase; cash discount etc

  • NSIC takes care of all the procedures, documentation & issue of Letter of credit in case of imports.


How to Apply

The Entrepreneurs are required to apply for Raw Material Assistance only on the prescribed application forms. The application forms downloaded from the link given below may be filled and submitted to the concerned Branch Office. The blank forms are also available free of charge from the Branch offices.

Download Application Form


The Process

  1. Duly filled application form is to be submitted along with the Application

  2. Preliminary appraisal and Unit inspection is carried out by NSIC.

  3. Sanction of Limit to the Unit.

  4. Signing of agreement between NSIC and Unit.

  5. Disbursement of assistance to the unit.


Terms and Conditions

  • Security in the form of Bank Guarantee from Approved/Nationalised Banks.

  • Processing fee- Processing fee shall be charged @ 1% p.a.

  • The rate of interest would be as under :

a) Assistance against the security of BG/SDR/FDR : : for 90 days

 

Particulars

Effective Rate of Interest

(w.e.f. 01/07/2015)

(i)   Units having valid SE 1A rating under

      NSIC’s  Rating Scheme

11.70%

(ii)  Units having valid SE 2A rating under

      NSIC’s  Rating Scheme

12.20%

 (iii) Units having valid SE 1B rating under

      NSIC’s  Rating Scheme

12.20%

(iv) Other Units

12.70%

  

     b) Assistance against the security of BG/SDR/FDR : 91 days & above- additional interest @1% for every cycle of 90 days. (Rate of interest may change from time to time.)

 For more details Please contact, NSIC Branch Office or Zonal office


DOCUMENTS TO BE ENCLOSED WITH APPLICATION FORM

  1. A passport size photograph of each of the Proprietor / Directors / Partners / Society office bearers.

  2. Self-attested photocopy of MSMEs registration no.(only for medium enterprises) & Sales Tax / VAT Registration Certificate.

  3. Self attested statement of personal assets and liabilities along with the residential address of Proprietor/Directors/Partners.

  4. Copy of Memorandum & Articles of Association along with list of Directors in case of Pvt. Ltd. / Ltd. Co. OR Copy of Partnership Deed duly notarized in case of Partnership concern. OR A copy of Bye Laws & charter of society along with a list of Governing body / executive members in case of society.

  5. A copy of Board Resolution in case of Pvt./Public Ltd. Co., Power of Attorney in case of partnership firm & a Governing Body Resolution in case of Society authorizing the signatory to sign and to deal with NSIC in respect of financial assistance required, for and on behalf of the applicant unit.

  6. Specimen signatures of authorized signatory attested by bank.

  7. Copy of sanction letter for credit limit sanctioned by the FIs/ banks other than the bank who issued Bank Guarantee.

  8. Audited/Provisional financial statements of the unit:
    i) Last year Audited financial statements. ii) Provisional current year financial statements.  For startup MSME unit- Projected financial statements duly certified by its Auditors or Chartered accountants.

  9. Audited financial statements for the last year in respect of sister / associate concern of the applicant unit, if any. (only when the assistance sought against the security of other than Bank Guarantee)


DOCUMENTS REQUIRED FOR RENEWAL OF CASES

  1. Request of the unit.

  2. List of Directors/Partners/Office bearers of Society, if changed, with respect to earlier declaration.

  3. Audited/Provisional financial statements of the unit:
    i) Last year Audited financial statements.
    ii) Provisional current year financial statements.

  4. Audited financial statements for the last year in respect of sister / associate concern of the applicant unit, if any. (Only when the assistance sought against the security of other than Bank Guarantee).


DOCUMENTS NEEDED AFTER SANCTIONING OF LIMIT AND BEFORE DISBURSEMENT

  1. Documents needed after sanctioning of limit and before disbursement

  2. Material Receipt as per Format.

  3. Demand Promissory Note as per Format & duly signed.

  4. Letter of Continuity as per Format.

  5. Bills / Invoices for release of payment in favour of supplier.


APPLICATION FORM ARE AVAILABLE AT

 


Updated : 10/07/2015