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NSIC – Full Form, Registration, Certificate, Types, Schemes,

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10 min read

NSIC

NSIC (National Small Industries Corporation), established in the year 1955, aims to support, promote, develop, and foster the ministry of MSME – Micro, Small, and Medium Enterprises of India. NISC is an ISO 9001-2015 certifies organization under the Government of India Enterprise. NSIC has training plus incubation centers, a network of offices, and technical centers in the whole country supervised and governed by professionals.

Offering unified support and manpower services in marketing, finance, technology, and support, NSIC also facilitates customized schemes, thus enhancing the competitiveness, diligence, and growth of the MSMEs and eventually resulting in the overall development of the country’s economy.

Types of Loans promoted by NICs

A range of other loans provided under Working Capital Loan like:

Objectives of NSIC:

The main goals of NSIC are:

  1. Eventually works on profitability by enhancing efficiency and productivity within the enterprise
  2. To enhance business growth by outreaching corporates and thus creating business opportunities
  3. Helps in working on a safe ad clean environment to work conductively
  4. Helps in training and self-employment
  5. Upgrades skills of existing and new manpower and employees

Functions of NSIC:

The main areas of functioning of NSIC are:

  • Helps the MSMEs to elevate their competitiveness by running and providing various development schemes
  • Provides the MSMEs various integrated support series on marketing, finance and technology
  • Skill Development and Training programs initiated and run by NSIC in keeping the MSMEs updated and upgraded.

Schemes under NSIC:

To foster and upgrade the growth of MSMEs in the country, NSIC has various schemes:

  • Bank Credit Facilitation – NSIC collaborates with various top banks in India, both public and private, to facilitate the MSMEs with credit support to meet their capital and financial needs and to help with the documentation process.
  • Raw Material Assistance Scheme – This is a beneficial scheme for MSMEs in the manufacturing unit and has the benefit of UAM – Udyog Aadhar Memorandum. They have the leverage to take a customized high-value loan up to Rs. 15 crores for the procurement of raw material in the form of credit or advance payment.
  • MSME Global Mart – B2B Web Portal – Under this scheme, NSIC offers infomediary services providing vital statistical data and information on business and technology exhibiting the competence of the MSMEs. It can help in providing information on the following topics:
    • Tenders on a national level on email
    • Trust seal of NSIC
    • The Web store of MSMEs
    • MSME interactive database
    • National Tender
    • Centralized emailing system
    • Popular products
    • LIVE chat and call center support
    • Discussion forums
    • Payment Gateway
    • Membership subscription
    • Other Value-add services
  • SinglePoint Registration Scheme – Launched in 1976, MSMEs make government purchases via a one-point registration process.
  • Consortia and Tender Marketing – A consortium is created to promote small scale products and goods of micro and small-scale entrepreneurs.
  • Marketing Intelligence Scheme – This helps in understanding the current market scenario and understanding the demand, needs, behaviors, preferences, attitudes, and tastes of the potential customers.
  • Technology Incubation – Under the PPP mode – Public-Private-Partnership, NSICs have set up training and incubation centers – NSIC-TIC by initiating franchisee agreements and arrangements with private entities at various locations in the country.
  • Government Schemes under NSIC – especially designed for the SC/ST group to help them start-up or develop their businesses.
  • ASPIRE Scheme– This addresses employment, the standard of living, and the livelihood of the public of India, in a scenario where the country’s population is growing by leaps and bounds.
  • International Cooperation and Consultancy Services – This works on sustainable business relations and aims to strengthen international business ties by offering consultancy to other developing countries.

Benefits of NSIC:

  • Through private and public sector banks, NSICs provide credit and loan facilities to MSMEs
  • Priority Sector is promoted
  • It gives an option to switch from one financial institution like banks to the other.
  • Supporting the documentation process for MSMEs
  • Guidance to get the best interest rates for MSMEs
  • Assist and direct MSMEs to avail credit
  • Holistic support to MSMEs

Eligibility:

A substantial segment of the Indian population depends on NSIC and this sector for financial independence and to give impetus toward the growth of agriculture, housing, export, education, and a host of other micro and small businesses. No Collateral is expected if the loan amount is Rs. 10 lakhs. If the MSME condition is favorable, then it can be granted up to Rs. 25 lakhs without collateral.

The firms need to follow the eligibility criteria as under:

  • MSMEs with a turnover from Rs. 5 crore – Rs. 250 crores
  • Should be operational for the last 3 years
  • Should be thorough in business with complete details, could be work-in-progress, services and finished goods, comprehensive details about the business and viability.
  • Past Loan repayment records if any
  • Favorable CIBIL score

Documents required:

  • Identity Proof, Address Proof (Personal and Business),
  • Latest Income Tax Returns
  • Rent agreement or lease deed
  • Entrepreneurs memorandum or Partnership Deed
  • SSI registration certificate
  • A complete profile of the business
  • Forecasted balance sheet for the next 2 years
  • The Balance sheet of the last 3 years
  • Properly filled application form
  • CMA Data (if the amount is above Rs. 100 lakhs)
  • Certificate from Pollution Control Board, electricity board and other statutory authorities
  • Value of stock, monthly production, and sales data, list of debtors and creditors, and other business-related information.

Registration Process for the Provisional Certificate

The following steps need to be followed for the registration process of NSIC:

Step 1 – The applicant must fill an application and submit it after paying the relevant fees along with the required documents.

Step 2 – The documents will be further checked and verified by the Nodal officer. If there is any discrepancy regarding the documents, the same will be intimated to the applicant

Step 3 – After verification and approval of documents by the Nodal officer, the same will be forwarded to the inspecting agencies Step 4 – After approval from the inspecting agency, a report will be generated, and the certificate of registration will be issued.

Registration Charges:

Based on the annual turnover of the business and the latest financial statements, the registration fees are charged as follows:

 If the enterprise turnover is Less than Rs 1 Crore:

  • Registration fees for Micro enterprises = Rs. 3,000
  • Registration fees for small enterprises = Rs. 5,000.

 If the enterprise turnover is more than Rs. 1 Crore:

  • Registration fees for Micro enterprises = Rs. 3,000 plus additional Rs. 1,500 for every extra crore
  • Registration fees for Small enterprises = Rs. 5,000 plus additional Rs. 2,000 for every extracrore.

Inspection Charges:

Inspection charges for Micro MSME= Rs. 2000

Inspection charges for Small MSME = Rs. 3000

Benefits of Single Point Registration

  • NSIC registers MSMEs under SPRS – Single Point Registration Scheme Government Purchases and there are many advantages of the process like:
  • Tender sets are issued at no charge and free of cost;
  • The MSMEs are exempted from the payment of EMD – Earnest Money Deposit
  • Annual goal of 25% of the total annual purchases by MSEs.
  • 358 products are for purchase from SSI Sector

Interest Rates under NSIC Scheme

The interest rate that is offered to MSMEs in a variation between 10.50% to 12%p.a. with a signed statutory memorandum of understanding (MOU) with all the leading financial institutions to provide credit support to MSMEs to operate, manage and run their respective businesses.

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NSIC FAQs:

1. What is the difference between NSIC and MSME on the point of definition?

NSIC – National Small Industries Corporation is a public sector undertaking to promote and sustain small and micro industries and businesses, whereas MSME – Micro, Small & Medium Enterprises promotes equitable developments and helps in the growth of the economy.

2. What is an NSIC Certificate?

NSIC Certificate is a vital document that is given to MSMEs to enable them for a single point of registration for purchases in government and credit rating schemes for small industries.

3. Which are the banks which are associated with the credit facilitation scheme under NSIC?

The following banks are associated with NSIC for providing credit: • AXIS Bank • Bank of Maharashtra • Canara Bank • Corporation Bank • Federal Bank • HDFC Bank • Indian Bank • IndusInd Bank Ltd. • Jammu and Kashmir Bank Ltd. • Kotak Mahindra Bank • Oriental Bank of Commerce • Syndicate Bank • Tamilnad Mercantile Bank Ltd. • The South Indian Bank • UCO Bank • Yes Bank

4. What is the mission and vision of NSIC?

The Vision and Mission of NSIC is to support MSME – Micro, small and medium enterprises by fostering their growth and providing integrated services on technology, marketing, finance, and other vital services.

5. What are the skills under NSIC networked to provide International Consultancy Services?

The various skills for International Consultancy Services under NSIC are: 1. Training on Institutional and Policy Framework 2. Skills comprising Capacity Building 3. Training on the development of Entrepreneurship skills 4. Development of Business Framework and services.

6. How does NSIC help in training of youth who is unemployed for starting new and Small enterprises?

The following objectives formulate the integrated services in training of unemployed youth for Entrepreneurship skills like: 1. How to selectthe right projects for small businesses 2. Sourcing and identification of machinery, plant and other equipment. 3. How to avail credit facility and other support services 4. How to boost small businesses in services and manufacturing sectors. 5. Skill development for setting up for enterprises (new and small) 6. How to prepare files and reports regarding new projects

7. What are the benefits of Performance and Credit Rating to provide loans to MSMEs for which NSIC has been appointed as the Nodal Agency?

Benefits of Performance and Credit Rating are: • Global trade is made possible • It ensures the credibility of the MSMEs • Attractive Interest Rates in case of a good credit score • Sanctions and prompt approvals from banks for the provision of loans • The fee structure for MSMEs is available at subsidised rates. • It further facilitates buyers to conduct capacity assessments of these MSMEs. • It helps MSMEs to understand their own strengths, weaknesses, opportunities and threats and further work on control ad corrective measures.

8. How does NSIC facilitate financing for the attainment of (short term) raw material?

NSIC helps in: • Leveraging 90 days financial provisions for the procurement of Raw Material. • It helps the MSMEs to import raw materials which are out of supply and are scarce. • It helps the enterprises to purchase bulk raw materials at affordable prices • MSIC helps in the documentation process, procedures and issuing letters of credit in case the raw materials need to be imported.

9. What kind of Technical Service Centres are offered under NSIC?

NSIC provides the following Technical support functions: • Facility support in multiple facets of technology • Accredited laboratories set up for material testing facilities • Services for consultancy on how to apply new techniques • Product design • Services regarding environment and energy and environment provided at selected centres • Skill upgradation through classroom and hands-on training

10. What are the membership benefits of Infomediary Services offered by NSIC?

The benefits are • Consists of Database of MSMEs • Information about Global & National Tender • Web- development tools • Online purchasing, marketing and selling • Payment Gateway and multiple options for payment • Discussion Boards and support on various languages • Cart for multiple products • Customer support through Lie Chats and Call centres • Web store for MSMEs • No limit on the trade leads (globally) • Section dedicated to popular products • Unified mail system and Free mailboxes • Trust Seal of NSIC • Many other Value added Services


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