Question: What are the eligibility criteria for Raw Material Assistance Scheme?

Answer: Here are the eligibility criteria for Raw Material Assistance Scheme:

Ministry Of Micro, Small and Medium EnterprisesRaw Material Assistance SchemeCredit SupportMSMENSICRaw
MaterialDetailsBenefitsEligibilityApplication ProcessDocuments RequiredFrequently Asked QuestionsThe scheme â€œRaw Material
Assistance Schemeâ€​ 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. OkWas this helpful?ShareNews and UpdatesNo new news and
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**How to apply:** :Step 01: Preliminary appraisal and Unit inspection is carried out by NSIC.Step 02: Sanction of Limit to the
Unit.Step 03: g of agreement between NSIC and Unit.Step 04: Disbursement of assistance to the unit.Documents RequiredA
passport-size photograph of each of the Proprietor/Directors/Partners/Society office bearers.Identity proof i.e. PAN Card, Aadhaar Card
etc.Residence proof i.e. Utility Bill (Latest Telephone/postpaid mobile /Electricity bill), Property or Municipal Tax receipt, Bank
Account or post office savings bank account statement, Passport, Driving Licence, Voterâ€™s Identity Card.Self-attested photocopy of
Udyam Registration Certificate/UAM, GST Registration Certificate,Self-attested statement of personal assets and liabilities along with
the residential address of Proprietor/Directors/Partners/ Society office bearers.A copy of the Board Resolution in case of Pvt./Public Ltd.
Co., Power of Attorney in case of a partnership firm & a Governing Body Resolution in case of Society authorizing the signatory to sign
and to deal with NSIC in respect of financial assistance required, for and on behalf of the applicant unit.Specimen signatures of
authorized signatory attested by the bank.Copy of sanction letter for credit limit sanctioned by the FIs/ banks.Audited/Provisional
financial statements of the unit i.e. (i) Last year's Audited financial statements. (ii) Provisional current-year financial statements. (iii) For
startup MSME unit Current year Estimates financial statements duly certified by its Auditors or Chartered accountantsBank statement of
the unit for the last six months.Copy of the latest Electricity Bill.Conduct a Report of Accounts of the unit with Banks (Other than Bank
Guarantee issuing Bank) and Financial Institutions in cases where the status/ conduct of loans is not available in the credit information
report.Certificate/ undertaking from the unit that their name(s), name of the company/its owners/associates/sister concern/
members/directors, in any way does not fall in the list of CIBIL/RBI defaulters list or any sort of case is there against them.Copy of
orders in hand, in case of enhancement of limit beyond five crores.Documents Required for Renewal of Cases:Unitâ€™s request letter
for renewal of limit and declaration that there is no change in constitution, promoters & address.In case there is any change in the
constitution, promoters & addresses, and relevant supporting documents are to be obtained.Copy of the latest and valid Bank Sanction
letter.In case of renewal is due after the due date of filing of income tax return, a copy of the Audited Annual Accounts for the last
financial year. In case, audited annual accounts are not finalized, a self-attested declaration of financial parameters of the last financial
year of Appraisal form along with the latest available Audited Annual Accounts.Projected/Estimated annual accounts of the Current
Financial Year or self-attested financial parameters as per the appraisal note.ï»¿Documents to be enclosed with the Application
formï»¿Frequently Asked QuestionsWhat is Raw Material Assistance Scheme?In order to assist the Micro, Small and Medium
Enterprises (MSMEs) in procuring the raw material(s), NSIC arranges to provide raw material as per specific needs and requirement of
the unit(s).Who can avail assistance under the Scheme?Any Manufacturing/Service MSME having Udyam Registration Certificate can
apply for the assistance under the Scheme.Does NSIC facilitate procurement of raw materials for trading activities?No trading activity
allowed under Raw Materials Assistance Scheme.Does NSIC facilitate MSMEs for raw material procurement against advance payment
or on credit?NSIC facilitates MSMEs in raw material procurement in both way i.e. against advance payment and also on credit, as per the
requirement of MSMEsHow to apply for raw material assistance on credit under the Scheme?Any MSME needs raw materials through
NSIC may apply to any of the NSIC field offices for Raw Material Assistance in the prescribed application forms, which can be
downloaded from NSICâ€™s website (www.nsic.co.in) or may be obtained from any of the field offices.Where to submit application for
raw material assistance?The duly filled in application form along with prescribed documents can be submitted with the nearest branch
office of NSIC. Details of NSIC offices are available on www.nsic.co.in.How the limit is sanctioned for procurement of material on
credit?A limit is sanctioned keeping in view the raw materials requirements of the unit, financial position of the unit and available
security of equivalent value in the form of bank guarantee.Whether there is any ceiling of the limit to be sanctioned under the Scheme?
Maximum exposure to a single unit under the scheme is â‚¹1000 Lakhs in case of manufacturing unit and â‚¹600 lakhs in case of service
unit. Maximum exposure to an Infrastructure unit will be â‚¹500 lakhs whether individual or group. The ceiling for maximum exposure
to all associate/sister concerns or connected accounts belonging to a â€˜GROUPâ€™ is fixed at â‚¹2000 lakh for manufacturing units,
â‚¹1500 Lakh for service units and â‚¹500 Lakh for Infrastructure unit.What is the validity of the limits sanctioned under the Scheme?
One year. Thereafter, the limit can be renewed for one year provided conduct of the account was satisfactory during last year.How does
NSIC provide credit support to MSMEs for procurement of raw materials?The unit has to submit proforma invoice/ original invoice/
material receipt note with the specific request to release the payment. The maximum assistance is provided upto 95% of the Bank
Guarantee value.Whether payment is released to the MSME?No. NSIC releases the payment to the supplier as requested by the
MSME.What is the credit period of the assistance provided?The credit is allowed for 180 days. However, it can further be extended on
the request of MSME with the consent of the respective Zonal Head, provided the unit serves interest, the total outstanding is within the
Bank Guarantee limit and the Bank Guarantee remains valid for an extended period.What are the benefits to MSMEs under the Raw
Material Assistance Scheme?1. Materials facilitated under Bulk supply arrangements are provided at the bulk supplierâ€™s rate by
eliminating the middlemen. 2. Discounts received under bulk supplies arrangements are shared with MSMEs, enabling them to reduce
the cost of purchase of materials. 3. Availability of raw material on credit and enabling MSMEs to execute the orders in handWhat is the
rate of interest charged, if repayment is not made within 180 days?1.25% per quarterSources And ReferencesOfficial
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