NSIC Raw Material Assistance Scheme

NSIC Raw Material Assistance Scheme

NSIC Raw Material Assistance Scheme

Raw Material Assistance Scheme provides financial assistance to Micro, Small and Medium Enterprises at the time of the purchase of raw material. This scheme provides an opportunity for the MSMEs to purchase quality raw material at low cost and give more attention on manufacturing quality products. In this article, we look at the NSIC Raw Material Assistance Scheme in detail.

Benefits of the Scheme

The benefits of the NSIC Raw Material Assistance Scheme are as follows:

  • Providing financial assistance for a maximum period of 90 days for obtaining raw materials.
  • MSMEs can utilize economies of scale and avail cash discount or bulk purchase discounts.
  • NSIC takes care of all the procedures, documentation & issue of Letter of Credit, in case of imports.

Eligibility Criteria

The scheme is only applicable to entrepreneurs of micro, small and medium scale industries. Hence, any business having Udyog Aadhar can avail the NSIC Raw Material Assistance Scheme.

Required Documents

The documents that are required to apply for this scheme are as follows:

  • A passport size photo of Directors and Partners.
  • Self-attested photocopy of:
    • MSMEs registration no for medium enterprises.
    • GST registration certificate.
    • Sales tax certificate.
  • Self-attested declaration of individual personal assets and liabilities along with the residential address of directors.
  • Copy of Memorandum of Association along with the list of Directors in a case of Private Limited Company.
  • Copy of Partnership Deed duly notarized in the case of Partnership concern.
  • Copy of Board Resolution in case of Private Limited Company.
  • Copy of Power of Attorney in case of partnership firm.
  • Specimen signatures should be attested from the bank.
  • Copy of sanction letter for credit limit sanctioned by the banks other than the bank which issued Bank Guarantee.
  • Audited or Provisional financial declaration of the unit:
    • Last year Audited financial statements.
    • Provisional current year financial statements.
  • Audited financial statements for the last year in respect of associate concern of the applicant unit.

Applying for raw material assistance Scheme

Step 1: Applicant must visit the official website http://www.nsic.co.in/  to download the raw material assistance application form.

Step 2:  The applicant needs to fill the application form and attach all documents as mentioned above.

RMA_APPFORM072015i

Step 3: Submit the application form to the concerned branch office.

Note: Application Form for raw material assistance scheme can be obtained from the branch office without remitting any fee for it.

Process of Disbursement

NSIC will make a visit to the applicant’s unit for the purpose of preliminary appraisal after submitting the form. Then, the agency will sanction a limit for the unit post inspection. After getting the sanction, the prospective beneficiary will be required to sign the agreement with NSIC. After signing the agreement, NSIC will disburse the assistance for the unit, provided that a security in the form of Bank Guarantee from approved or nationalized banks is furnished by the applicant.

Post by Karthiga

IndiaFilings is India's largest online compliance services platform dedicated to helping people start and grow their business, at an affordable cost. We were started in 2014 with the mission of making it easier for Entrepreneurs to start their business. We have since helped start and operate tens of thousands of businesses by offering a range of business services. Our aim is to help the entrepreneur on the legal and regulatory requirements, and be a partner throughout the business lifecycle, offering support at every stage to ensure the business remains compliant and continually growing.