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22 Aug 2023

Raw Material Assistance

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.

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.