The scheme aims to meet the credit requirements of MSME units. NSIC has entered into a Memorandum of Understanding with various nationalised and private sector banks. Through syndication with these banks, NSIC arranges for credit support (fund- or non-fund-based limits) from banks without any cost to the MSMEs.
Who can register?
Existing MSME registered units as well as units applying for fresh loans can apply for credit facilitation.
Benefits:
(i)Helps the MSMEs in completing documentation and thereafter submitting it to the bank.
(ii) Helps the MSMEs in getting liberal rate of interests from the banks after a favorable rating is awarded to unit under Performance and Credit rating scheme of the Ministry.
(iii) Working Capital limits to meet the working capital needs of the MSME units in the form of open cash credit, overdraft against book debts and bill discounting facility.
For units requiring working capital limits up to Rs. 5 crore, requirement is assessed as 25% of the projected turnover for the next year and the working capital limit shall be 20% of the projected turnover. The balance shall be brought by promoters as their contribution by way of equity / loans. For limits above Rs. 5 crore, the working capital requirement is assessed under Maximum Permissible Bank Finance Method.
Types of Loans:
The types of loans that are available for Micro, Small and Medium Enterprises are
1. Term loans for acquisition of fixed assets for setting up new units and for expansion, modernisation and diversification of existing units.
2. Working capital limits to meet the working capital requirements of the MSME units in the form of open cash credit, overdraft against book debts and bill discounting facility.
3. Non-fund based limits like guarantees, letter of credit, foreign bank guarantees, foreign letter of credit, etc.
How to apply?
Download the loan application form of the bank under credit facilitation scheme from the NSIC website and follow the instructions thereby.
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