The National Small Industries Corporation is a Public Sector Undertaking (PSU) that runs under MSME (Ministry of Micro, Small, and Medium Enterprises). The National Small Industries Corporation is ISO 9001:2015 Certified and was set up in 1955 by the Government of India.
NSIC has been set up to provide much-needed support to the MSME sector in India so that they can grow better. Services associated with marketing, finance, technology, etc., are offered under NSIC.
The National Small Scale Industries Corporation Ltd. has a lot to offer to all enthusiastic industries. The bullets points below mention the various features and benefits of the NSIC scheme:
The facility of an easy loan is quite essential for small-scale industries. NSIC scheme intends to help MSMEs to avail of this facility. Small and medium businesses can request MSME loans through enlisted private and public-sector banks.
The products of MSMEs are exported through NSIC Ltd. The government has initiated the NSIC Single Point Registration Scheme (SPRS) for the export of MSME products.
The MSEs with SPRS get an exemption EMD (Earnest Money Deposit) when it comes to government tenders. EMD is the security deposit charged to the bidder before bidding for a tender.
The newly set up industries need a lot of attention and guidance. Apart from helping out with financial burdens, the NSIC scheme also provides guidance in choosing the best facilities for businesses.
NSIC scheme offers a set of support services like modern technology, marketing and finance tools, etc. All these combined can help hike up the business on modern lines.
Check out the eligibility criteria before you apply for an MSME loan through the NSIC scheme. These include:
Micro, small, and medium enterprises that record a turnover of less than ₹100 Crores are eligible to apply for MSME loans
Enterprises must have a valid GST number
Entities must not be classified as traders
A good CIBIL score is necessary to seek MSME loan approval
If you are seeking cash credit loans, the lending institutions will also ask you to present details of your business, You will need to present the loan repayment records of any past loans (if borrowed) to avail of the loan
Here are the details about the registration fees and other charges, along with the concessions available:
Fee and Charges
a. Turnover of up to ₹1 Crore
i. Micro Enterprises: ₹3,000
ii. Small Enterprises: ₹5,000
b. Turnover of over ₹1 Crore
i. Micro Enterprises: ₹3,000 + ₹1,500 for every additional turnover of ₹1 Crore
ii. Small Enterprises: ₹5,000 + ₹2,000 for every additional turnover of ₹1 Crore
(A cap of ₹1 Lakh is applicable)
Fee for issuance of amendment in certificate
Fee for issuance of Renewal of GP Registration (Due every two years)
50% of the charges proposed as registration fee with a cap of ₹50,000
A 20% concession on fees is available for MSMEs in North-east India
You need certain documents to avail of the MSME loan. These include:
Properly filled out application form
Identity, income, address, business address, and age proof
Assets and Liability statements of promoters, directors, guarantors, etc., along with the latest ITR (Income Tax Returns)
A copy of SSI RC (Small Scale Industry Registration Certificate)
Lease deed or rent agreement (if rented or leased the business premise)
Name and address of the promoters
Balance sheet along with income tax returns of the past 3 years
A projected balance sheet for the upcoming 2 years
CMA (Credit Monitoring Arrangement) data if the loan is ₹1 Crore
Account position with bankers
Estimates of the sanctioned building
Trust/partnership deed documents
Clearance from the electricity board, pollution board, etc.
There are different types of loans offered under the NSIC scheme. According to your business needs and future vision, you can get a loan. The various types of loans are:
MSME loan is granted to businesses that seek financial support for day-to-day expenses of the business, start-ups, self-employed individuals, etc. Loan amount of up to ₹2 Crores can be availed. The repayment tenure of the MSME loan is 5 years.
A term loan is one that is borrowed for a specific tenure. It can either be a short-term loan (less than 1 year) or a long-term loan. Depending on the type of loan, the interest rate also varies.
The term loan under National Small Industries Corporation can either be on fixed interest rates or floating interest rates. The former is the one where the interest rate is fixed for the entire tenure, while the floater interest rate is the one that varies with the varying repo rate.
One way to increase the business cash flow of MSMEs is a working capital loan. It is a loan borrowed to meet urgent business requirements and other daily expenses.
You have the option of secured loans, unsecured loans, and overdrafts when it comes to a working capital loan. The various eligibility criteria are:
Individuals between the age of 21 and 65 years can apply
A good credit score and history
The well-tailored schemes of NSIC aim to help businesses see the expected growth and enhance their presence in the market. Check out the various NSIC schemes below to understand them better:
The National Small Scale Industries Corporation subsidy provides financial aid for raw materials so that businesses can easily produce quality goods.
The NSIC Single Point Registration Scheme lets the MSMEs participate in government purchases and benefits. It is the MSME that enlists the names of various industries that can participate in the single-point registration scheme.
Consortia or consortium assistance is given by the NSIC to small-scale industries in order to grow their business. It provides financial assistance to either individual businesses or consortiums.
Managing the information of a business is as important as assisting the growth of the business’s production processes.
So, NSIC offers infomediary services that help each MSME to access all the business and NSIC-related data and information at one display. They also provide features like free mailboxes, a centralised mail system, a popular product section, etc.
The market database is very helpful in expanding a business. It helps in understanding the preferences and needs of various customers. Hence, the business, in turn, tries to offer relatable and affordable products so it can widen its customer base.
The market intelligence scheme of National Small Scale Industries Corporation is intended to collect valuable customer and business databases.
PPP Mode refers to the Public-Private-Partnership mode. The technology incubation intends to train the new entrepreneurs at training cum incubation centres that are set up by the NSIC scheme across various centres in India.
To help the SC and ST entrepreneurs of India build up their existing businesses or start new ones, NSIC has launched various government schemes. It aims at registering all the existing SC and ST entrepreneurs and welcomes the new ones.
Marketing support is essential for the overall growth of a business, especially for MSMEs. Modern marketing tools can do wonders for small-scale industries. Hence, the NSIC scheme of marketing assistance aims at providing the MSMEs with marketing tools.
It helps create new job opportunities in MSME sectors and reduce unemployment issues. It intends to promote entrepreneurship among people and help them set up their own businesses.
The credit rating scheme for the performances of MSMEs refers to the rating of various MSMEs on different factors. The autonomous bodies are assigned the task of rating so it can work unbiasedly and help rank each MSME as per their performance.
The credit rating scheme for MSMEs gives the money lending institutions a clearer idea about the future scope and present performance of a business. Some of the grounds on which the credit is calculated for small industries corporations include the following:
Marketing and Finance Capabilities
National Small Scale Industries Corporation (NSIC) was set up as a Public Sectors Undertaking (PSU) by the government of India in 1955.
On the one hand, MSME is a government sector that includes small, micro, and medium enterprises. On the other hand, the NSIC scheme is a PSU that runs under MSME. Hence, both of these are two different entities where NSIC works under the Union Ministry of MSME.
The process of getting a loan from NSIC Ltd. is simple. You need to visit the official website and download the application form. Fill out the form and collect all the required documents.
Visit the nearest branch of a bank that accepts the form and submit the form there along with the required documents.
By getting an NSIC certificate, you can facilitate your business. For small industries, the government offers NSIC Single Point Registration for government purchases, including credit rating schemes.
The purpose of setting up the NSIC scheme is to provide small-scale industries with industry growth-supporting tools like technologies, loans, marketing and finance aids, etc.