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:
- Overdraft Facility using Current Account
- Cash Credit loan
- Bills Discounting
- Unsecured Short-Term Business Loan
- CGTMSE – ‘Credit Guarantee Fund Scheme for Micro and Small Enterprises’ scheme loan
- Letter of Credit
Objectives of NSIC:
The main goals of NSIC are:
- Eventually works on profitability by enhancing efficiency and productivity within the enterprise
- To enhance business growth by outreaching corporates and thus creating business opportunities
- Helps in working on a safe ad clean environment to work conductively
- Helps in training and self-employment
- 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
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
- 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.
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 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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