Raw Material Assistance Against Guarantee

Raw Material Assistance

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

Benefits of the Scheme

  • Financial Assistance for Purchasing the Raw Material is upto 180 days.
  • MSMEs helped to avail Economics of Purchases like bulk purchase, cash discount etc.

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 can be submitted to the nearest Branch Office. The blank forms are also available free of charge from the Branch offices.

The Process

  • Duly filled application form is to be submitted along with the Application
  • Preliminary appraisal and Unit inspection is carried out by NSIC.
  • Sanction of Limit to the Unit.
  • Signing of agreement between NSIC and Unit.
  • Disbursement of assistance to the unit.

Terms and Conditions

  • Security in the form of Bank Guarantee from Approved Banks.
  • The rate of interest would be as under:

Assistance against the security of BG :

A-Rate of interest in respect of assistance availed upto 14.06.2019

ParticularsEffective Rate of Interest(% per Annum)
(w.e.f. 21.05.2018)
Normal InterestMICROSMALLMEDIUM
A. Upto 90 days
(i) Units (MSEs) having valid MSE 1 rating*9.5010.0011.00
(ii) Units (MSEs) having valid MSE 2 rating*10.0010.5011.00
(iii) Other units10.5011.0011.00
*These rates shall be applicable where entire outstanding dues is upto 90 days

B. Any portion of Outstanding due more than 90 days but not beyond 270 days
10.5011.0011.00
C. Any Outstanding due more than 270 days11.5012.0012.00

Additional rate of interest on delayed payment (beyond 90 days), over and above the normal rate of interest, would be as under:

a)In case entire outstanding is within 270 days1% for every cycle of 90 days on the principal outstanding dues
b) In case any outstanding is more than 270 days1.25% for every cycle of 90 days

B-Rate of interest in respect of assistance availed on or after 15.06.2019

ParticularsEffective Rate of Interest(% per Annum)
Normal Interest (Compounded on monthly rest)MICROSMALLMEDIUM
Upto 180 Days
(i) Units (MSEs) having valid MSE 1 rating*9.5010.0011.00
(ii) Units (MSEs) having valid MSE 2 rating*10.0010.5011.00
(iii) Other units10.5011.0011.00
*These rates shall be applicable where entire outstanding dues is upto 180 days

Additional rate of interest on delayed payment (beyond 180 days), over and above the normal rate of interest, would be as under:

In case any outstanding is more than 180 days1.25% for every cycle of 90 days

Processing Fee :

Processing FeeMICROSMALL AND MEDIUM
On new sanctions1.0% p.a.1.0% p.a.
On Renewal0.5% p.a.1.0% p.a.

Source: Nsic

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