Aim of the Scheme
Helping MSME Units by financing their Raw Material purchases, both imported & indigenous, thereby allowing them to focus on producing quality goods.
Scheme is applicable to all existing MSEs registered with Directorate of Industry/DICs.
Highlights/Benefits of the Scheme
- Can get Funds under Non Fund based Limit like LC Discounting/Bank Gaurantee.
- Simple rate of interest levied.
- Payment can be made to any Supplier.
- Make advance payments to Vendor and avail cash discount.
- Economics of large scale purchases can be availed, like bulk purchases discount.
- No need of stock hypothecation/statement and Reconciliation.
- Credit up to Rs 5 crore for individual unit and up to Rs. 15 crore for group companies.
- Financial assistance is available for procurement of Raw Material up to 90 days on rotational basis at simple interest rate if interest @ 13.40% p.a. or as applicable.
- Rebate up to 1% on interest rate on the basis of performance and credit rating to MSEs only as per the specified rating scale under Performance and Credit Rating Scheme of NSIC. Such rebate can range between 0.25% to 1%.
- Nominal charges for processing of application and NSIC fees.
- There is no Margin Money involved.
- NSIC takes care of all the procedures, documentation and issue of Letter of Credit(LC) in case of import of raw materials.
How to Apply
Promoters/Entrepreneurs should apply for RMA only on the prescribed Application Form.
- Duly filled Application Form to be submitted along with the Application Processing Fee by DD or Pay Order in favour of NSIC Ltd.
- Preliminary appraisal and Factory inspection would be carried out by NSIC.
- Sanction of Limit.
- Signing of Agreement between the Unit and NSIC.
- Disbursement of Fund to the Unit.
TERMS & CONDITIONS
- Processing fees according to amount of assistance sought, as per slab ,
Upto Rs 25 Lacs 2,500/-
Rs. 25 Lacs to Rs. 50 Lacs 5,000/-
Rs. 50 Lacs to Rs. 1 Crore 10,000/-
Above Rs. 1 Crore 0.1% of Assistance
2.Security in the form of BG from Approved/Nationalized Banks.
Rate of interest would be between 12.40% to 13.40% depending on the Rating. Moreover, concessional rate of interest is available only to those Units which make timely repayments to NSIC, I.E WITHIN 90 DAYS.Beyond 90 days an additional interest of 3% would be charged.
3. One time Service Charges of 1% p.a. of the Limit sanctioned would be charged if it is paid upfront or else, 0.25% for the first 30 days and thereafter 0.08% per week on principal amount, would be charged.