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

MSME Mart






Last updated date - 12/19/2014
 
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 Regional & Branch Offices. The blank forms are also available free of charge from the zonal and Branch offices.

The Process

  1. Duly filled application form is to be submitted along with the Application Processing Fee ( by Bank Draft / Pay Order in favour of NSIC Ltd.).

  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

 The rate of interest would be as under :

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

Particulars

Effective Rate of Interest

(w.e.f. 1/02/2013)

(i)   Units having valid SE 1A rating under

      NSICís  Rating Scheme

11.95%

(ii)  Units having valid SE 2A rating under

      NSICís  Rating Scheme

12.45%

 (iii) Units having valid SE 1B rating under

      NSICís  Rating Scheme

12.45%

(iv) Other Units

12.95%

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

Documentation:
Application in Prescribed form should be submitted with the following

i.

A passport size photograph of each of the proprietor/directors/parners/society office bearers

ii.

Self-attested photcopy of SSI and sales tax/VAT registration certificate

iii.

Processing fee as per policy.

iv.

Self attested statement of personal asstes and liabilities along with the residential address of proprietor/directors/partners..

v.

Copy of† of Memorandum and articles of Association with the list of Directors in case of limited/private limited company

OR

A†copy of the partnership deed duly†notarized in case of partnership concern.

OR

A copy of bye-laws and charter of society alongwith the list of governing body/executive members in case of society

vi.

A†copy of board resolution in case of private/public liimited company, , Power of Attorney in case of partnership firm and a governing body resolution in case of society authorising the signatory to sign and to deal with NSIC in respect of financial assistance required for and on behalf of the applicant unit.

vii.

Specimen signature of the authorised signatory of the applicant unit attested by the banker of the unit.

viii

Copies of sanction letter, for the credit units sanctioned by FIs/banks other than then those who isssued bank guarantees.

ix.

Provisional financial statements of the unit†for the current year and audited financial statement of last year.

x.

Audited financial statement 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
i. Material Receipt as per Format.
ii. Demand Promissory Note as per Format & duly signed.
iii. Letter of Continuity as per Format.
iv. Bills / Invoices for release of payment in favour of supplier.
Application Forms are Available at :
ēNSIC -†Zonal Offices†
ēNSIC - Branch Offices
The Application Form downloaded from above link can be printed and used.

Updated : 29/01/2013