NSIC stands for National Small Industries Corporation. Actually, NSIC is an ISO 9001-2008 certified Government of India Enterprise under the Ministry of Micro, Small, and Medium Enterprises (MSME). Here in this article, we intend to provide important NSIC Subsidy schemes for small business owners.
Basically, NSIC works to promote, aid, and foster the growth of micro, small, and medium enterprises in the country. NSIC operates through the countrywide network of offices and Technical Centres in the Country.
NSIC facilitates Micro, Small, and Medium Enterprises with a set of specially tailored schemes to enhance their competitiveness. Additionally, NSIC provides integrated support services for Marketing, Technology, Finance, and other Support Services.
List of NSIC Subsidy Schemes
#1. NSIC Subsidy for Raw Material Assistance
Basically, the raw material assistance scheme helps MSMEs by way of financing the purchase of Raw Materials (both indigenous & imported). This gives an opportunity to MSMEs to focus better on manufacturing quality products.
Benefits of the Scheme
- Financial Assistance for procurement of Raw Materials up to 90 days.
- MSMEs helped to avail Economics of Purchases like bulk purchases; cash discounts, etc.
- NSIC takes care of all the procedures, documentation & issue of letters of credit in case of imports.
How To Apply For Raw Material Assistance
First of all, you can apply for Raw Material Assistance only on the prescribed application forms. You can download the application form from the link given below. Fill out the form and submit it to the concerned Branch Office. The blank forms are also available free of charge from the Branch offices.
Application Form Download: http://www.nsic.co.in/forms/RMA_APPFORM072015.PDF
Process of Disbursement
After filling up the form and submission the same, NSIC will visit your unit. Basically, this is for preliminary appraisal purposes. Then, the agency will sanction the limit for the unit. After getting the sanction, you have to sign the agreement with NSIC. After signing the agreement, NSIC will disburse the assistance for your unit. However, you have to provide security in the form of a Bank Guarantee from Approved/Nationalised Banks.
Required Documents
- A passport-size photograph of each of the Proprietor / Directors / Partners / Society office bearers.
- Self-attested photocopy of MSMEs registration no. (only for medium enterprises) & Sales Tax / VAT Registration Certificate.
- Self-attested statement of personal assets and liabilities along with the residential address of the Proprietor/Directors/Partners.
- Copy of Memorandum & Articles of Association along with the list of Directors in the case of Pvt. Ltd. / Ltd. Co. OR Copy of Partnership Deed duly notarized in the case of Partnership concern. OR A copy of Bye-Laws & charter of society along with a list of Governing body/executive members in the case of society.
- A copy of the Board Resolution in the case of Pvt./Public Ltd. Co., Power of Attorney in a case of partnership firm & a Governing Body Resolution in the 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.
- Specimen signatures of authorized signatories attested by the bank.
- Copy of sanction letter for credit limit sanctioned by the FIs/ banks other than the bank who issued Bank Guarantee.
- Audited/Provisional financial statements of the unit: i) Last year’s Audited financial statements. ii) Provisional current-year financial statements. For startup MSME unit- Projected financial statements duly certified by its Auditors or Chartered Accountants.
- Audited financial statements for the last year in respect of sister/associate concern of the applicant unit, if any. (only when the assistance is sought against the security of other than a Bank Guarantee).
To know more about NSIC credit facilitation and raw material assistance, visit their official site.
#2. NSIC Subsidy for Marketing Assistance
There is a specific Marketing Intelligence Cell in NSIC. Basically, the cell acquires and analyzes the information to understand both existing and potential customers.
Also, it determines the current and future needs and preferences, attitudes, and behavior of the market; and assesses changes in the business environment that may affect the size and nature of the market in the future. This aims to promote the business horizons of MSMEs of India through Marketing Intelligence Web Portal.
It is beneficial for the MSMEs who are seeking business collaboration and co-production opportunities, joint ventures, exporters and importers, and those looking for technology transfer.
Marketing Assistance Scheme Features
- Database of Bulk Buyers (Product wise) Buyers in Government / Public Sector Undertakings.
- Database of Rate Contracts of various Government Department and PSUs.
- Information on Tenders Floated by Government Department and PSUs.
- Database of Indian Exporters to various Countries with Products.
- Database of International Buyers with Products.
- Business Partner Matchmaking (Arrange one-to-one meetings for Foreign Delegations with Indian Exporters).
- Database of Technology Suppliers & Projects for MSMEs
- Additionally, you can find Market Intelligence Reports on the NSIC web portal pertaining to several sectors, trends analysis, and Export-Import Statistics.
#3. NSIC Subsidy for Performance & Credit Rating
This is a very specific and value-added Scheme of NSIC. Basically, a performance or credit rating is an analysis of performance capability and credit risks that are associated with the business. There are approved and independent agencies that act without any bias.
Benefits of Performance and Credit Rating
- An independent trusted third-party opinion on capabilities and credit-worthiness of Micro and Small Enterprises
- Availability of credit at attractive interest
- Additionally, recognition in global trade
- Prompt sanctions of Credit from Banks and Financial Institutions
- Subsidized rating fee structure for Micro and Small Enterprises
- Facilitate vendors/buyers in capability and capacity assessment of Micro and Small Enterprises
- Finally, it enables Micro and Small Enterprises to ascertain the strengths and weaknesses of their existing operations and take corrective measures.
Empanelled Agencies for Credit Rating
- CARE
- CRISIL
- India Ratings(Earlier known as Fitch Ratings)
- ICRA
- SMERA
- Dun & Bradstreet(D&B)
You have the liberty to select any of the approved rating agencies impaneled under the rating scheme. However, you have to mention the rating agency chosen by you in your request for obtaining the rating.
The validity of the application is for a period of six months. And you have to submit all the documents to the rating agency during this time.
The rating agency also needs to complete the rating process within 60 days of the receipt of the complete application along with the prescribed documents. The validity of a rating shall be for a period of one year from the date of issue of the rating letter.
You can download the application form from the link http://www.nsic.co.in/pdfs/ratingform23052016.pdf.
The Rating Agencies have different fee structures for their rating of various clients including micro and small enterprises. The Rating Agencies will devise their fee structure for MSE units under this Scheme separately.
As the evaluation criteria for an award of Rating is different with various Rating Agencies and their acceptability also varies with the users, the rating fee to be charged by the Rating Agencies will be varying.
Information Required for Credit Rating
- Name
- Address
- Type & Entity
- Year of establishment/operations started
- Contact no. & email.
- UAM No./ EM
- No. of Employees
- Turnover & Profitability of last 3 years
- Investment in P & M
- Products manufactured or services provided
- Whether supplying to any major buyers and whom
- List of top customers
- Loan details
- Name of the Bank and Address
- Interest Rate charged
- Date of Rating Renewal.
#4. NSIC Subsidy for Bill Discounting Scheme
Basically, the Scheme covers the purchase/discounting of bills arising out of genuine trade transactions i.e. purchase of supplies made by small-scale units to reputed Public Limited Companies / State and Central Govt. Departments/Undertakings.
Sellers: Small Scale Units
Buyers:
i) State and Central Govt. Departments / Undertakings
ii) Public Limited Companies
Grant of Purchase wise Limits
Bills drawn by small-scale units for the supplies made by them and duly accepted by the Purchaser will be financed against the security of the Bank Guarantee in favor of NSIC.
Purchaser unit(s) may approach NSIC for sanction of annual limits by furnishing information as per the prescribed application form.
Grant of Seller-wise Limits:
Seller unit(s) may provide a bank guarantee in favor of NSIC for availing financial assistance under the scheme. Bills drawn by them against their supplies made, duly accepted by the purchaser will be financed. Annual limits can be fixed for such units by obtaining information as per the prescribed application form.
