Sarkari Yojana
Raw Material Assistance Scheme
About Raw Material Assistance Scheme
Run by the National Small Industries Corporation (NSIC), a Government of India Enterprise under the Ministry of Micro, Small and Medium Enterprises (MSME), the “Raw Material Assistance Scheme” helps MSMEs procure raw materials — both indigenous and imported — by financing their purchase, letting MSMEs concentrate more on manufacturing quality products.
Scheme Overview
Central Government
Ministry Of Micro, Small and Medium Enterprises
National Small Industries Corporation
Scheme Details
Eligibility Requirements
To qualify for Raw Material Assistance Scheme, applicants must satisfy the following conditions:
1
1. Any Manufacturing or Service MSME that holds a Udyam Registration Certificate is eligible to apply for assistance under the Scheme.
Note:
Trading activities are not permitted under the scheme.
Benefits Provided
Raw Material Assistance Scheme provides the following benefits to eligible applicants:
Facilitates procurement of Raw Materials, with credit support…
Facilitates procurement of Raw Materials, with credit support extending up to 180 days.
Helps MSMEs tap into Economics of Purchases, like…
Helps MSMEs tap into Economics of Purchases, like bulk purchases and cash discounts.
Assistance comes against the security of a Bank…
Assistance comes against the security of a Bank Guarantee — the interest rate for assistance availed on or after 01.02.2023: ParticularsEffective Rate of Interest(% per Annum)Effective Rate of Interest(% per Annum)Normal Interest (Compounded on monthly rest) Upto 180 DaysMicroSmall & Medium(i) Units having valid SME 1 rating8.759.25(ii) Units having valid SME 2 rating9.259.75(iii) Other units9.7510.25Note: The concessional interest rate for well-rated MSMEs, at Sl. No. (i) and (ii) above, applies only where the unit repays the Corporation's dues on time; units that miss the 180-day repayment window lose eligibility for the concessional rate and instead get charged the rate at Sl. No. (iii) above.
Delayed payment (beyond 180 days) attracts an additional…
Delayed payment (beyond 180 days) attracts an additional interest rate, over and above the normal rate, as follows: In case any outstanding is more than 180 days1.25% per quarter> Processing Fee: Processing FeeMicroSmall & MediumOn new sanctions1.0% per annum1.0% per annumOn Renewal0.5% per annum1.0% per annumNote: Security comes in the form of a Bank Guarantee from Approved Banks.
Documents Required
Applicants should keep the following documents ready before starting the application:
A passport-size photograph for each Proprietor/Director/Partner/Society office bearer
A passport-size photograph for each Proprietor/Director/Partner/Society office bearer.
Identity proof, such as a PAN Card, Aadhaar…
Identity proof, such as a PAN Card, Aadhaar Card, etc.
Residence proof, such as a Utility Bill (latest…
Residence proof, such as a Utility Bill (latest Telephone/postpaid mobile/Electricity bill), a Property or Municipal Tax receipt, a Bank Account or post office savings bank account statement, a Passport, a Driving Licence, or a Voter's Identity Card.
A self-attested photocopy of the Udyam Registration Certificate/UAM…
A self-attested photocopy of the Udyam Registration Certificate/UAM and the GST Registration Certificate.
A self-attested statement of personal assets and liabilities,…
A self-attested statement of personal assets and liabilities, along with the residential address, for each Proprietor/Director/Partner/Society office bearer.
Authorization for the signatory to deal with NSIC…
Authorization for the signatory to deal with NSIC regarding the financial assistance sought, on behalf of the applicant unit — a Board Resolution for a Pvt./Public Ltd. Co., a Power of Attorney for a partnership firm, or a Governing Body Resolution for a Society.
Specimen signatures of the authorized signatory, attested by…
Specimen signatures of the authorized signatory, attested by the bank.
A copy of the sanction letter for the…
A copy of the sanction letter for the credit limit approved by the FIs/banks.
Audited/Provisional financial statements of the unit, namely
Audited/Provisional financial statements of the unit, namely: (i) last year's Audited financial statements; (ii) provisional current-year financial statements; (iii) for a startup MSME unit, current-year estimated financial statements duly certified by its Auditors or Chartered Accountants.
The unit's bank statement covering the last six…
The unit's bank statement covering the last six months.
A copy of the latest Electricity Bill
A copy of the latest Electricity Bill.
A Conduct Report of the unit's accounts with…
A Conduct Report of the unit's accounts with Banks (other than the Bank Guarantee-issuing Bank) and Financial Institutions, where loan status/conduct isn't available in the credit information report.
A certificate/undertaking from the unit confirming that its…
A certificate/undertaking from the unit confirming that its name(s), or the name of the company/its owners/associates/sister concern/members/directors, does not appear on the CIBIL/RBI defaulters list, and that no case of any kind exists against them.
A copy of orders in hand, where the…
A copy of orders in hand, where the limit enhancement sought exceeds five crores. Documents Required for Renewal of Cases:
The unit's request letter seeking renewal of the…
The unit's request letter seeking renewal of the limit, along with a declaration that there has been no change in constitution, promoters, or address.
Where there has been a change in constitution,…
Where there has been a change in constitution, promoters, or addresses, the relevant supporting documents must be obtained.
A copy of the latest and valid Bank…
A copy of the latest and valid Bank Sanction letter.
Where renewal falls due after the deadline for…
Where renewal falls due after the deadline for filing the income tax return, a copy of the Audited Annual Accounts for the last financial year — or, where these aren't yet finalized, a self-attested declaration of the last financial year's financial parameters as per the Appraisal form, along with the latest available Audited Annual Accounts.
Projected/Estimated annual accounts for the Current Financial Year,…
Projected/Estimated annual accounts for the Current Financial Year, or self-attested financial parameters per the appraisal note. Documents to be enclosed with the Application form
How to Apply
Offline Application
Applicants can apply for Raw Material Assistance Scheme through the offline application process outlined below.
Application Process:
Entrepreneurs must apply for Raw Material Assistance only…
Entrepreneurs must apply for Raw Material Assistance only on the prescribed application forms.
Applicants can download the application forms from the…
Applicants can download the application forms from the official website of NSIC; blank forms are also available free of charge from the Branch offices.
The duly filled application form, along with the…
The duly filled application form, along with the Application, must be submitted to the nearest Branch Office. Post-Application Process:
NSIC carries out a preliminary appraisal and Unit…
NSIC carries out a preliminary appraisal and Unit inspection.
The Limit gets sanctioned to the Unit
The Limit gets sanctioned to the Unit.
NSIC and the Unit sign an agreement
NSIC and the Unit sign an agreement.
The assistance gets disbursed to the unit
The assistance gets disbursed to the unit.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.