National Small Industries Corporation (NSIC)

Bank Credit Facilitation

To fulfil the credit needs of the MSME units, NSIC has partnered with various private and public sector banks. NSIC facilitates access to credit support to the MSMEs from banks by assisting in the documentation process while also following up with the banks.

To avail loans, borrowers can download the loan application forms from the official website of the banks under the 'Bank Credit Facilitation Scheme. The banks that offer loans under this scheme are Yes Bank, IndusInd Bank, Federal Bank, Kotak Mahindra Bank, HDFC Bank, Tamilnad Mercantile Bank, Jammu & Kashmir Bank, AU Small Finance Bank, Ujjivan Small Finance Bank, UCO Bank, Corporation Bank, Bank of Maharashtra, Oriental Bank of Commerce, Bank of Baroda, Axis Bank, Punjab National Bank, State Bank of India, Indian Bank, Central Bank of India, Canara Bank, Syndicate Bank, South Indian Bank, Electronica Finance Limited, and Bestdealfinance.com Pvt. Ltd.

Raw Material Assistance Scheme

MSMEs can receive assistance from NSIC to procure raw materials as per their requirements in the form of credit and advance payment. Any MSME in the manufacturing segment with a Udyog Aadhar Memorandum (UAM) can take advantage of the scheme. Single MSME units can avail loans of up to Rs.5 crore while a group of units engaged in activities related to manufacturing can avail loans of up to Rs.15 crore.

The rate of interest charged on loans availed under this scheme range between 9.50% and 12%. MSMEs availing loans under this scheme need to be repaid within 90 days but this can be extended upon request.

Single Point Registration Scheme

To enhance the share of purchases from the MSME sector, the Single Point Registration Scheme was launched by NSIC in 1976 under the Government Stores Purchase Programme. This scheme enables MSEs to participate in government purchases through a single registration. The MSEs will be issued a Provisional Registration Certificate with a monitory limit of Rs.5 lakh. The PRC will have a validity of 1 year from the date of issue. Some of the benefits that MSEs can enjoy under the scheme have been listed below:

1. Tender will be issued free of cost
2. Exempted from paying Earnest Money Deposit
3. While participating in tenders, MSEs that quote a price within L1+15% price band will be permitted to supply up to 25% of the requirement by reducing their price to L1 where L1 is non-MSE.
4. A yearly goal of at least 25% of the total annual purchases of the products or services rendered/produced by the MSEs will be set for purchase by every central departments/ministries/PSUs. Out of this, 25% will be earmarked for units owned by Scheduled Tribes/Scheduled Castes while 3% will be earmarked for units owned by women entrepreneurs.
5. 385 items from MSEs will be reserved for exclusive purchase.

NSIC Consortia and Tender Marketing Scheme

The aim of this scheme is to promote products of micro and small entrepreneurs. The scheme aids the entrepreneurs' market their products either individually or collectively through 'Consortium'.

Some of the features of this scheme are:

1. Micro and Small Enterprises which are registered with Single Point Registration Scheme (SPRS) will also be eligible to be covered under the Consortia and Tender Market Scheme
2. This scheme will help in selecting the units which will be due to participate in open and single tenders on a nomination basis
3. This scheme will also take care of security deposits and will provide EMD on back to back basis
4. This scheme will aid in formation of Consortium, Capacity Building of MSEs by formation of consortia of the units manufacturing similar products, participation in tenders on behalf of units in a 'consortia' which will allow them to secure orders in bulk
5. Legal documents such as individual agreement by the units, agreement to be executed by the consortium, board resolution, power of attorney, etc. has been duly revised in order to accommodate the provision of this scheme
6. The Government of India, Ministry of MSME vide Gazette Notification No. S.O. 581(E) dated 23rd March2012 has circulated the Public Procurement Order 2012 for MSME in order to promote the facilitation and development of Micro and Small Enterprises
7. Enterprises formed under this scheme will supply the required stores with the necessary items and render services as required by government department, PSUs, etc.

NSIC Infomediary Services for MSMEs

Under this scheme, all the information related to business, technology, finance, and different types of aids offered by NSICs will be displayed in a one stop one-window format. You can visit www.msmemart.com which is a business to business (B2B)web portal. The services can be availed through annual membership.

Some of the benefits of Infomediary Services are:

1. Freemailboxes
2. Trust seal of NSICs
3. Centralisedmail system
4. Payment gateway for membership subscription
5. Popular product section
6. Multiple languagesupport
7. Unlimited global trade leads
8. Interactive Database of MSMEs
9. Global & National Tender Notices

NSIC Marketing Intelligence Support for MSMEs

The Marketing Intelligence Cell works toward acquiring intelligence and other relevant information in order to understand both the existing and potential customers and determine their needs, preferences, and attitude and behavior of the market. The aim to use this information to promote the growth of MSME in India.

Some of the features of Marketing intelligence are:

1. Database of buyers for each product who will purchase the items in bulk, buyers in government and public sectors
2. Information on tenders which has been floated by government and public sectors
3. Database of rate contracts of various government and public sector undertakings
4. Database of Indian exporters
5. Database of international buyers
6. Database of Technology Suppliers & Projects for MSMEs
7. Business Partner Matchmaking
8. List of Micro & Small Enterprises registered with NSIC for Government Purchases, Raw Material Assistance, Performance & Credit Rating Schemes, List of MSMEs Industrial Association

NSIC Technology Incubation & PPP Model Explained

As NSIC work to promote micro and small enterprise in India, one of the methods that it has employed is to create self-employment opportunities by training unemployed people entrepreneurship building skills, who will be able to new small business enterprises for themselves in any manufacturing or service sectors or look for other employment opportunities. In order to achieve this, NSIC has started a new initiative by entering into franchisee arrangements with private entities who may be interested in setting up Training-cum-Incubation Centres(NSIC-TIC) at various locations across India under Public-Private Partnership (PPP) mode.

Government Schemes implemented by NSIC

This is an initiative launched by the Government of India which aims to help those belonging to SC and ST group to start their own business successfully and take care of their financial requirements.

The Government of India in order to make this scheme successful have allocated Rs.490 crore for the period between 2016 and 2020. All the new and existing SC and ST entrepreneur must be registered on the MSME Databank.

Marketing Assistance Scheme

The MSME sector has grown in India in the last few years and has been one of the most dynamic sectors of the Indian economy. Various MSME schemes in India has established business and provided employment opportunities at lower capital cost.

Marketing is one of the most important tools for any business to promote itself and grow. Hence, in order to help enterprises grow, Ministry of Micro, Small & Medium Enterprises, inter-alia, through National Small Industries Corporation (NSIC), a Public Sector Enterprise of the Ministry has been providing marketing support to MSMEs under the Marketing Assistance Scheme.

Some of the objectives of this scheme are:

1. Aims to enhance the marketing capabilities and competitiveness of MSMEs
2. Showcase the competence of MSMEs
3. To educate MSMEs about the current market scenario and how the business will be impacted
4. To form consortia of MSMEs in order to help them market their products and services
5. Providing platform to MSMEs in order to help them interact with large buyers
6. To propagate various government programmes
7. To enrich and improve the marketing skills of micro and small enterprise entrepreneurs

NSIC ASPIRE Scheme – Promoting Innovation

India currently is facing challenges of providing employment and livelihood to people as the population in the country grows. The MSME sector has been identified as one sector which has the capability of addressing the problem and provide employment opportunities to economically weak people and help them set up their own business.

Aspire scheme is one such scheme which aims in meeting those objectives.

Some of the objectives of this scheme are given below:

1. Creating new jobs which in turn will lead to a reduction in unemployment
2. Provide opportunities to people to set up business and promote entrepreneur skills in India
3. Grassroot economic development at district level
4. To help facilitate business solutions in order to fulfil yet to be met social needs
5. To promote innovation which in turn will only strengthen the competitiveness of the MSME sector in India

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