Are your Clients Holding Back your Funds? Reclaim your Money with the Bill Discounting Scheme

A stack of pending bill receivables is nothing new for an MSME. However, the delays in receiving such payments can sometimes affect the daily working of the enterprise. When an MSME faces such a similar situation the Bill Discounting Scheme serves as the ideal solution.

Overview

Under the Bill Discounting Scheme, if an MSME has bills raised by Public Limited Companies, State and Central Government Departments or Undertakings, the NSIC will pay them a certain bill amount, until the bills have been cleared by the respective departments.

Benefits

How does an MSME benefit from this scheme?

Through this scheme, the government offers to buy the bills from an MSME at a concessional rate. The actual rate would depend on an MSME’s NSIC Rating.

Particulars Effective Rate of Interest

(w.e.f 20/09/2011)

(i)   Units having valid SE 1A rating under

NSIC’s  Rating Scheme

12.40%
(ii)  Units having valid SE 2A rating under

NSIC’s  Rating Scheme

12.90%
 (iii) Units having valid SE 1B rating under

NSIC’s  Rating Scheme

12.90%
(iv) Other Units 13.40%

Eligibility Criteria

What is the eligibility criteria for this scheme?

  • All MSMEs registered with NSIC are eligible for the scheme
  • The bills to be discounted should not be older than 90 days

Application

How to apply for this scheme?

MSMEs that wish to apply for this scheme can fill in the application form here.

Documents Required

Which are the documents that need to be submitted with the application form?

The following list of documents must be submitted in order to apply for this scheme:

  • Bank guarantee in favour of NSIC (The guarantee should be equivalent to the value of assistance) or Bill of Exchange duly accepted by large corporate units which have been profitable for the last 3 years and have a turnover exceeding ₹ 200 crores and net-worth exceeding ₹ 50 crores; or Personal guarantee of proprietor, partners of firms and Directors of the company
  • A passport size photograph of each of the Proprietor /Directors / Partners / Society office bearers along with their proof of residential address.
  • Self-attested photocopy of SSI & Sales Tax Registration Certificate
  • Processing fee as per policy
  • Self-attested statement of personal assets and liabilities
  • In case of Pvt. Ltd. or Public Ltd. Co., a copy of Memorandum & Articles of Association along with list of Directors needs to be attached
  • In case of a partnership concern, a copy of Partnership Deed duly notarized needs to be submitted
  • For a society, a copy of By-laws & charter of society along with a list of Governing body or executive members needs to be attached
  • Documents required for authorizing the signatory to sign and to deal with NSIC in respect of financial assistance required, for and on behalf of the applicant unit, need to be submitted as follows:
    • 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
  • Specimen signatures of authorized signatory attested by bank
  • Copy of sanction letter for credit limit sanctioned by the bank
  • Audited/Provisional financial statements of the unit
    • Last Year’s Audited financial statements
    • Provisional current year financial statements
    • Projected financial statements for the next year

 Which are the documents that need to be submitted for the renewal of cases?

The following list of documents must be submitted for renewal of cases:

  • Request of the unit along with processing fees as per policy
  • List of Directors/Partners/Office bearers of Society, if changed, with respect to earlier declaration.
  • Audited/Provisional financial statements of the unit:
    • Last Year’s Audited financial statements.
    • Provisional current year financial statements.
    • Projected financial statements for the next year.

Important Note: Please note that processing fee and service charges are applicable.

For further details on this scheme, please click here.

Need Faster Access to Credit Loans at Low Interest Rates? Get your Company Rated with NSIC

Small businesses often require loans and additional funds to continue their day-to-day functioning. However, receiving these loans at an affordable interest rate and in time is not always easy. But what if all this and more was possible without any hassle? This is where the NSIC Scheme comes into picture.

Overview

The NSIC scheme enables the government to offer all Micro and Small Enterprises (MSEs) a credit rating, which displays their capabilities and credit-worthiness.

Benefits

How does an MSE benefit from this scheme?

This independent and trusted third party rating provides MSEs with many benefits. They are as follows:-

  • Quick and hassle-free loans from Banks and Financial Institutions
  • Attractive interest rates
  • A subsidized rating fee structure (This enables an MSE to pay only a part of the rating fee, while the government pays the rest)
  • A premier SE 1A rating for the company (This rating is the highest rating an MSE can receive which improves their chances of participating at global trade fairs and exhibitions)
  • Expert advice on how to manage money better

Eligibility

What is the eligibility criteria for this scheme?

All Micro and Small Enterprises (MSEs) are eligible for this scheme.

Application

How can an MSE apply for this scheme?

To avail this scheme and get their company rated, MSEs are required to fill up and submit the prescribed application form to CRISIL, along with their share of the rating fee.

For more details on the NSIC credit rating scheme call 1800 103 3453.

Documents Required

Documents are required to apply for NSIC rating scheme are –

  • SSI/UAM (Udyog Aadhaar Memorandum)
  • Registration Certificate
  • Partnership Deed / Memorandum & Article of Association.
  • Authority letter to sign the application.
  • A list of all Partners or Directors with their age, address, Net worth / Income Tax Return, qualifications and experience.
  • A copy of the audited accounts for the last three years. In case accounts for the last year have not been audited, provisional accounts duly certified by a Chartered Accountant along with two years audited accounts are to be submitted.
  • In case of new project or expansion, a copy of the project report containing a brief project profile, the cost of project, source or means of finance need to be submitted.
  • Brief write-up about the products manufactured, end users, marketing tie-ups and orders in hand.
  • Details of subsidy, tax concession available to the applicant.
  • Quality certificates, export awards won membership of any associations.
  • Any other information that would help understand your business better.

For additional details about this scheme and how it can benefit a MSE, click here

Expand your Business Reach by becoming a supplier to the Government with NSIC

Every manufacturer aspires to expand its horizons and explore new markets to upscale its business. To attain such opportunities, these manufacturing units have to be verified suppliers to the government. This is where the NSIC Registration scheme comes into the picture.

Overview

The NSIC registration scheme enables manufacturing units to become suppliers to the government and avail exclusive benefits for their upliftment.

Benefits:

How can a manufacturing unit benefit from this scheme?

A manufacturing unit can benefit from this scheme in the following ways:

  • Your business can issue tender papers free of cost
  • No Earnest Money Deposit (EMD) would be required to be paid
  • Even if your bid is not the lowest and you lose the tender, your business can supply up to 20% of the requirement at the lowest quote
  • Out of this 20% procurement from MSEs, 4% is from units owned by SC /ST class
  • Moreover, 358 items are for exclusive purchase from SSI Sector

 Application

How can a manufacturing unit apply for this scheme?

A Manufacturing unit can apply online or offline in the following ways:

  • For online application, click here
  • To check the registration fee, click here
  • For offline application, click here
  • For NSIC rating call: 1800-103-3453

Note: The form should be filled and submitted at the nearest Zonal or Branch office of NSIC.

Eligibility Criteria

What is the eligibility criteria for this scheme?

Businesses having an RC or a UAM are eligible to register for the NSIC Scheme

Documents Required

What are the documents required to apply for this scheme?

The following list of documents will be required at the time of application:

  1. Copy of Acknowledgement of Entrepreneurs Memorandum Part-II
  2. Details of Plant & Machinery and Raw Materials of the unit showing purchase date and original purchase value of every machine in Format “B” of application form
  3. Performance Statement as per format/Performa “G” of the application form
  4. Self-attested copy of ownership documents of the premises or copy of lease deed
  5. Declaration/Certificate from the Proprietor/Partner/Director even if they are not linked with large scale unit(s). In case of their links with large scale unit(s), complete details should be specified
  6. Two copies of each of the Declarations duly signed by the authorized person of the applicant SSI Unit accepting conditions of registration (Format “D” & “E” of application form)
  7. List of raw materials and finished goods in stock
  8. Copy of ISO 9000 (Optional)
  9. Copy of Registration Certificate if registered with DGS & D or other Govt. organizations
  10. List of places where after-sales service facilities (if applicable) are available
  11. Copy of BIS license, if applicable
  12. List of technical personnel employed in production and services
  13. Item for which registration required with detailed specification(s)
  14. Write-up on quality control measures adopted by the firm for ensuring quality of raw material, bought out item (s) for assembly and sub-assembly and for products/stores in process and the finished products quality control
  15. List of quality control equipment and testing facility available in factory
  16. Copy of type test report from Independent lab, where applicable as mentioned in relevant standard
  17. Latest Electricity Bill Copy
  18. Audited Balance Sheet, Trading Account and Profit & Loss
  19. Account for the last 3 years duly signed by the authorized person under his seal
  20. Statement showing the Results of Operation for the last 3 years duly signed by Chartered Accountant under his seal {in prescribed format of Annexure “C” of application form (Manufacturing or service enterprises as applicable)}
  21. Bankers’ Report giving details of financial status of the applicant firm as per Performa “F” of application form
  22. Copy of Permanent Account No. (PAN)

Partnership firms are required to submit additional documents which are as follows:

  • General Power of Attorney in favor of one of the Partners
  • Partnership Deed
  • Form ’A’ from Registrar of Firms showing the names of the partners

Private Limited Companies should submit the following additional documents:

  • Certificate of Incorporation duly authenticated
  • Memorandum and Articles of Association duly authenticated
  • Names of sitting Directors, their addresses and their share holdings
  • Board Resolution in favor of the Signatory of the application and documents

Co-operative societies should submit the following additional documents:

  • Certificate of Registration of Societies
  • Society’s By-Laws/Regulations etc.
  • Names of Members, their addresses and share holding
  • Current Certificate from Registrar of Societies that the Society is still functioning and its working is satisfactory
  • Details of authorized share capital and subscribed share Capital
  • Details of movable as well as immovable property owned by the Society
  • Resolution of Society for seeking registration under Government Purchase Program
  • Resolution in favor of Signatory of the application & documents

 Important note

In case your manufacturing unit has not completed one operational year, you can apply for a provisional certificate which is valid for one year. Furthermore, the registration is also valid for one year only after which it needs renewal.

For further details on this scheme, click here.