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National Small Industries Corporation Ltd.
(A Government of India Enterprise)
A Miniratna - Category -1, Public Sector Enterprise
Ministry of Micro, Small & Medium Enterprises – Government of India
Government of India
Ministry of MSME

Raw Material Assistance Scheme aims at helping MSMEs by way of financing the purchase of Raw Material (both indigenous & imported). This gives an opportunity to MSMEs to focus better on manufacturing quality products.

Benefits of the Scheme

  • Facilitating procurement of Raw Material with credit support up to 180 days
  • MSMEs helped to avail economics of purchases like bulk purchase, cash discount etc.

How to Apply

Entrepreneurs are required to apply for Raw Material Assistance only on the prescribed application forms. The application forms downloaded from the link given below may be filled and submitted to the nearest Branch Office. Blank forms are also available free of charge from the Branch offices.

The Process

  • Duly filled application form is to be submitted along with the application.
  • Preliminary appraisal and Unit inspection is carried out by NSIC.
  • Sanction of Limit to the Unit.
  • Signing of agreement between NSIC and Unit.
  • Disbursement of assistance to the unit.

Terms and Conditions

  • Security in the form of Bank Guarantee from Approved Banks.
  • The rate of interest is as follows:

Assistance against Security of BG

Rate of interest in respect of assistance availed on or after 01.12.2023

Rate of interest for RMA against Bank Guarantee
Particulars Effective Rate of Interest (% per Annum)
Normal Interest (Compounded on monthly rest) MICRO SMALL & MEDIUM
Upto 180 Days
(i) Units having valid SME 1 rating* 9.00 9.75
(ii) Units having valid SME 2 rating* 9.50 10.25
(iii) Other units 10.00 10.75

*Note: The concessional rate of interest for good rated MSMEs (Sl. No. i and ii) shall be applicable only to those cases where units make timely repayments. Units which have not repaid dues within the stipulated 180 days shall not be eligible for the concessional rate and shall be charged at Sl. No. (iii). Additional rate of interest on delayed payment (beyond 180 days) over and above the normal rate: 1.25% per quarter.

Processing Fee

Processing fee for RMA scheme
Processing Fee MICRO SMALL AND MEDIUM
On new sanctions 1.0% p.a. 1.0% p.a.
On Renewal 0.5% p.a. 1.0% p.a.

Downloads

Documents to be enclosed with Application Form View PDF — Required Documents List (opens in new tab)
Frequently Asked Questions (FAQs): Raw Material Assistance View PDF — RMA FAQs (opens in new tab)
FAQs: Raw Material Distribution (English) View PDF — RMD FAQs English (opens in new tab)
FAQs: Raw Material Distribution (Hindi) View PDF — RMD FAQs Hindi (opens in new tab)