Financial Assistance for procurement of Raw Materials

In Micro and Small Medium Enterprises, a large part of funds is used for purchasing raw materials. This restricts them from accepting larger orders and thus stops them from up-scaling. The Raw Material Assistance Scheme solves this problem and serves as a solution to such MSMEs.

Overview

The Raw Material Assistance Scheme aims at helping MSMEs by offering them Financial Assistance for procurement of raw material (both indigenous & imported).

Benefits

How does an MSME benefit from this scheme?

Under the Raw Material Assistance Scheme, the MSME can receive the following benefits:

  • Financial Assistance for procurement of Raw Material up to 90 days
  • Assistance to avail economic purchases like bulk purchase, cash discount etc.
  • Assistance in completion of procedures, documentation & issue of Letter of credit in case of imports
  • Provision of a Memorandum of Understanding with the bulk manufacturers in case of procurement of raw materials like Aluminum, Zinc, Copper, Iron & Steel, Paraffin wax, Coal, Polymer products etc.
  • Adherent to any other specific request of MSMEs

Eligibility

What is the eligibility criteria for this scheme?

All manufacturing MSMEs who possess Udyog Aadhaar Memorandum (UAM) are eligible for this scheme.

Application

How can an MSME apply for the scheme?

MSMEs are required to apply for The Raw Material Assistance Scheme via the prescribed application forms by following any of the given instructions:

  1. Send in an online request for this scheme by clicking here
  2. Download the form by clicking here. Fill it and submit it in any of the NSIC Branch offices
  3. Visit any NSIC – Branch offices/Zonal Offices, collect the available form for free of charge and submit it in the same office.

For a detailed process of application for this scheme click here

Documents Required

Which are the documents required to apply for this scheme?

  1. A passport size photograph of each of the Proprietor/Directors/Partners/Society office bearers.
  2. Self-attested photocopy of MSMEs registration no. (Only for Medium Enterprises) & Sales Tax / VAT Registration Certificate.
  3. Self-attested statement of personal assets and liabilities along with the residential address of Proprietor/Directors/Partners.
  4. Copy of Memorandum & Articles of Association along with the list of Directors in case of Pvt. Ltd. /Ltd.

OR

Copy of Partnership Deed duly notarized in case of Partnership concern.

OR

A copy of Bylaws & charter of society along with a list of governing body/executive members in case of society.

  1. A copy of Board Resolution in case of Pvt. /Public Ltd. Co., Power of Attorney in case of partnership firm & a Governing Body Resolution in case of Society authorizing the signatory to sign and to deal with NSIC in respect of financial assistance required, for and on behalf of the applicant unit.
  2. Specimen signatures of authorized signatory attested by bank.
  3. Copy of sanction letter for credit limit sanctioned by the FIs/ banks other than the bank who issued Bank Guarantee.
  4. Audited/Provisional financial statements of the unit: – Last year audited financial statements. / Provisional current year financial statements. For startup MSME unit- Projected financial statements duly certified by its Auditors or Chartered accountants.
  5. Audited financial statements for the last year in respect of sister / associate concern of the applicant unit, if any. (only when the assistance sought against the security of other than Bank Guarantee)

For Terms and Conditions click here.

For further details on this scheme, click here.

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