Raw Material Assistance Scheme

About This Scheme

The scheme “Raw Material Assistance Scheme” was started by the National Small Industries Corporation (NSIC), Government of India Enterprise under the Ministry of Micro, Small and Medium Enterprises (MSME) to assist the Micro, Small and Medium Enterprises (MSMEs) in procuring the raw material(s). The Scheme aims to help MSMEs by way of financing the purchase of Raw Materials (Both indigenous & imported). This allows MSMEs to focus better on manufacturing quality products.

Eligibility

1. Any Manufacturing/Service MSME having a Udyam Registration Certificate can apply for assistance under the Scheme. Note: No trading activity is allowed under the scheme.

Benefits

1. Facilitating procurement of Raw Materials with credit support for up to 180 days. 2. MSMEs helped to avail Economics of Purchases like bulk purchases, cash discounts, etc. 3. Assistance against the security of Bank Guarantee-Rate of interest in respect of assistance availed on or after 01.02.2023: ParticularsEffective Rate of Interest(% per Annum)Effective Rate of Interest(% per Annum)Normal Interest (Compounded on monthly rest) Upto 180 DaysMicroSmall & Medium(i) Units having valid SME 1 rating*8.759.25(ii) Units having valid SME 2 rating*9.259.75(iii) Other units9.7510.25*Note: The concessional rate of interest for the good-rated MSMEs, as mentioned at Sl. No. (i) and (ii) in the table above shall be applicable only to those cases, where the units make timely repayments of the Corporation’s dues. The units which have not re-paid its dues within the stipulated 180 days, shall not be eligible for the concessional rate of interest. Such units shall be charged the rate of interest mentioned at Sl. No. (iii) above. 4. Additional rate of interest on delayed payment (beyond 180 days), over and above the normal rate of interest, would be as under: In case any outstanding is more than 180 days1.25% per quarter> *Processing Fee:* Processing FeeMicroSmall & MediumOn new sanctions1.0% per annum1.0% per annumOn Renewal0.5% per annum1.0% per annumNote: Security in the form of Bank Guarantee from Approved Banks.

How to Apply

Where This Comes From

This scheme was sourced from myScheme, the Government of India's official Central+State scheme discovery portal, and reviewed by an editor before publishing. Use the button above to read the full details and apply directly on the official source.