RMA against Bank Guarantee
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
The 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 can be submitted to the nearest Branch Office. The 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 would be as under:
Assistance against the security of BG :
Rate of interest in respect of assistance availed on or after 01.10.2020
| Particulars | Effective Rate of Interest(% per Annum) | ||
|---|---|---|---|
| Normal Interest (Compounded on monthly rest) | MICRO | SMALL | MEDIUM |
| Upto 180 Days | |||
| (i) Units (SMEs) having valid SME 1 rating* | 7.50 | 8.00 | 9.00 |
| (ii) Units (SMEs) having valid SME 2 rating* | 8.00 | 8.50 | 9.00 |
| (iii) Other units | 8.50 | 9.00 | 9.00 |
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 days | 1.25% per quarter |
Processing Fee :
| 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. |
