Swayamsiddha Foundation

April 21, 2022 | Swayamsiddha Foundation

Women entrepreneurs scripting a silent transformation

women entrepreneurs

A conducive social atmosphere enables them to thrive in Tamil Nadu

The 2021 edition of  Women & Men in India, published last week by the National Statistical Office (NSO) of the Union Ministry of Statistics and Programme Implementation, has an element of pleasant surprise for Tamil Nadu.

With about 10.87 lakh units, Tamil Nadu accounts for the highest number of women entrepreneur-owned establishments, which cover not only micro, small and medium enterprises (MSMEs) but also nano units, promoted through platforms such as the self-help groups (SHGs). The State’s share is around 13.5 % of 80.5 lakh such establishments in the country. “No other State is even close to ours,” observes an official in the State government, dealing with development issues. Kerala comes next with around 9.14 lakh establishments having the share of 11.35%. Andhra Pradesh is placed third with around 8.5 lakh units (10.6%), followed by West Bengal with about 8.3 lakh units (10.3%). States known to be highly industrialised, Maharashtra and Gujarat, have 6,64,300 and 5,28,623 such establishments respectively with their shares being 8.25% and 6.57%.

Of these units in Tamil Nadu, 94% has been classified as “perennial” against the all-India figure of 89%. Even though the number of hired workers is about 2.93 lakhs, its proportion (27%) is higher than the national average of 17%. Again in terms of employment, the State finishes on top with 13.8% of about 1.34 crore persons employed in the country. Tamil Nadu’s figure is about 18.6 lakh persons.

The NSO document, in turn, quotes the findings of the Sixth Economic Census carried out during 2013-14. “Even though the data may appear to be outdated, this holds good even today in the absence of any other data,” the official points out. This explains why the Central agency too has to cite the 2013-14 census findings. 

The official also explains that though certain events, including the introduction of the Goods and Services Tax (GST), demonetisation and the COVID-19 pandemic may have caused some impact, there is every likelihood of the overall situation remaining the same. (The data concerning Andhra Pradesh pertain to the present territorial limits of that State with Telengana having been dealt with separately, though the census was carried out much before the creation of the latter in 2014).

Another official specialising in the area of MSMEs and nano units says the “social climate” prevalent in the State is mainly responsible for the development. K.S. Bhagyalakshmi, vice-president of the Tamil Nadu chapter of the Dalit Indian Chamber of Commerce & Industry (DICCI), lauds the roles being played by the State Industries and MSME Departments, in addition to the Entrepreneurship Development and Innovation Institute-Tamil Nadu (EDII-TN) in making possible the accomplishment.

Pointing out that the policy framework has been conducive to greater direct participation of women in economy, the official says empowering women through education and better livelihood opportunities is one of the focus areas of the present government. Apart from what the Central government provides, the State has been implementing measures such as an additional capital subsidy of 5% and a target of 50% assigned to women under the New Entrepreneur-cum-Enterprise Development Scheme (NEEDS), with priority being given to destitute women.

The draft policy document, unveiled by the State government in December, also seeks to enlarge the government’s intervention. The interest subvention has been proposed in such a way that women-owned units or any enterprise having 50% of women employed vertically in all positions would have zero interest on successful repayment of the money lent through any formal financial institution. The provision of hand-holding and mentoring by industry experts to all the targeted 1 lakh women entrepreneurs, a financial support of up to ₹1 lakh to women graduating from livelihood as micro entrepreneurs for participation in seminars, workshops, symposiums or short training courses, the creation of women-specific district-wise help center/portal, preferably with an accountable call center, and the launch of additional awards for women entrepreneurs or women-led startups have all figured in the draft document.

Several experts drive home the point that the authorities should pay greater attention to providing greater financial support and market linkages to women entrepreneurs. Ms. Bhagyalakshmi suggests that the government reorient its measures in such a manner that women are given more focus when it comes to land allotment or any subsidy or support scheme.

With the overall environment being supportive of women entrepreneurs, some more steps in favour of women will definitely help the State achieve early its goal of becoming a $1 trillion economy. That is the hope of the experts and entrepreneurs such as Ms. Bhagyalakshmi.

Source

April 17, 2022 | Swayamsiddha Foundation

Udyogini Scheme

udyogini

Udyogini means Women Entrepreneur and Government has initiated this scheme for the welfare and development of Indian Women Entrepreneurs. Udyogini Yojana has been implemented by Women Development Corporation under the Government of India.

This scheme promotes and motivates women’s entrepreneurship among the poor by providing financial support to women for doing business. Udyogini Scheme helps in the enhancement of income of an individual and families and contribute to the overall growth of the country.

Udyogini Scheme Details – Feb 2022
Interest RateCompetitive, subsidized or free for special cases
Loan AmountMax. up to Rs. 3 lakh
Annual Family IncomeRs. 1.5 lakh or less
No income limitFor Widowed or disabled women
CollateralNot required
Processing FeeNil

Note: The mentioned interest rates are subject to change and depend on the sole discretion of the Government of India and respective banks or NBFCs. 

Interest-free loans are offered to women of all sections of the society without any discrimination or preference. Udyogini Scheme is primarily offered by Karnataka State Women’s Development Corporation (KSWDC), Punjab and Sind bank, Saraswat Bank, as well as several other private and public sector banks and leading NBFCs. This scheme focuses on organizing and undertakes skill development training programs for women, besides offering financial assistance. Below mentioned are key details of this scheme:

Eligibility Criteria for Loans under Udyogini Scheme

  • Business Loan available for only Women Entrepreneurs
  • Should not have defaulted on any past loan with any financial institution
  • Applicant with good credit score and repayment capability

Documents required

  • Duly filled Application Form with passport-sized photographs
  • Applicant’s Aadhaar Card, Birth Certificate
  • Applicant’s Below Poverty Line (BPL) card & Ration Card
  • Address and Income Proofs
  • Caste Certificate, if applicable
  • Copy of Bank passbook (account, bank and branch names, holder name, IFSC and MICR)
  • Any other document required by the bank/NBFC

Who can Apply for a Loan under Udyogini Yojana Scheme?

Udyogini Yojana offered by several banks can be availed by aspiring women entrepreneurs across the nation. This scheme is exclusively initiated to promote women’s entrepreneurship and financial empowerment. Under this scheme, subsidized loans are offered for women entrepreneurs from rural areas.

How to Apply for a Business Loan under the Udyogini Scheme?

To apply for a business loan under this scheme or yojana, applicants can visit the nearest bank with all the required documents and fill an application form to proceed with bank formalities. Another option is that applicants can apply for loans online by visiting the official website of banks offering loans under the Udyogini scheme.

Below mentioned are the features and eligibility criteria for loans under this scheme from leading banks and NBFCs:

Udyogini Scheme from Bajaj Finserv

Interest RateInterest-free loan to women from all sections of the society
Loan AmountMax. up to Rs. 3 lakh
Loans available for88 SSIs – Small Scale Industries
SubsidyUp to 30%
Family Income CriteriaShould be less than Rs. 1.5 lakh
Training for Skill DevelopmentAvailable

Udyogini Scheme from Saraswat Bank

 Micro EnterprisesSmall Scale EnterprisesMedium Enterprises
Interest Rate11.15% onwards11.15% onwards11.15% onwards
Loan AmountUp to Rs. 2 lakhFrom Rs. 2 lakh up to Rs. 50 lakhFrom Rs. 50 lakh up to Rs. 100 lakh
Processing FeeRs. 5,000· Upto Rs. 10 lakh – Rs. 5000· Above Rs. 10 lakh and Upto Rs. 25 lakh – Rs. 7000· Above Rs. 25 lakh – Rs. 10000Rs. 10,000
Repayment Tenure6 Years6 Years7 Years
MarginNil20%-25% lower than the Bank’s norm20%-25% lower than the Bank’s norm
SecurityHypothecation + Guarantee of Spouse or a Family member wherever required.Hypothecation + 2 Guarantors + Collateral Security (25%)Hypothecation + 2 Guarantors + Collateral Security (30%)

Udyogini Scheme from Punjab & Sind Bank (PSB)

Interest Rate – Vyapar Loan9.65% onwards (Working Capital Loan)
Loan AmountDepends on business requirements
Processing FeeNil
MarginNil up to Rs. 25,000
Security/CollateralNil, up to Rs. 25,000
Loan TypeTerm Loans and Working Capital Loans

Udyogini Scheme from Karnataka State Women’s Development Corporation (KSWDC)

Interest RateAs per business requirements
Age CriteriaMin. 18 years and Max. 45 years
Loan AmountUp to Rs. 3 lakh
SubsidyUp to 50%, family income limit to be less than Rs. 2 lakh for SC/ST category
Family Income CriteriaNo limit for women under special category and for general category – Family income should be less than Rs. 40,000
EDP Training providedFor 3 days, before loan disbursal

Note: All the above-mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the banks, NBFCs and RBI. GST and service tax shall be levied extra on the mentioned charges. Interest rates are updated as on Feb 2022.

Funding support can be availed by businesses engaged in the SSI sector, retailers, manufacturers, self-employed professionals, traders, etc. Some of the leading banks offer interest-free loans to 88 categories of SSI. Below mentioned is an exhaustive list of 88 categories that fall under SSI sector that are supported under the Udyogini Scheme:

List of 88 Business Categories supported under the Udyogini Scheme

  • Agarbatti Manufacturing
  • Audio & Video Cassette Parlour
  • Bakeries
  • Banana Tender Leaf
  • Bangles
  • Beauty Parlour
  • Bedsheet & Towel Manufacturing
  • Book Binding And Note Books Manufacturing
  • Bottle Cap Manufacturing
  • Cane & Bamboo Articles Manufacturing
  • Canteen & Catering
  • Chalk Crayon Manufacturing
  • Chappal Manufacturing
  • Cleaning Powder
  • Clinic
  • Coffee & Tea Powder
  • Condiments
  • Corrugated Box Manufacturing
  • Cotton Thread Manufacturing
  • Crèche
  • Cut Piece Cloth Trade
  • Dairy & Poultry Related Trade
  • Diagnostic Lab
  • Dry Cleaning
  • Dry Fish Trade
  • Eat-Outs
  • Edible Oil Shop
  • Energy Food
  • Fair-Price Shop
  • Fax Paper Manufacturing
  • Fish Stalls
  • Flour Mills
  • Flower Shops
  • Footwear Manufacturing
  • Fuel Wood
  • Gift Articles
  • Gym Centre
  • Handicrafts Manufacturing
  • Household Articles Retail
  • Ice Cream Parlour
  • Ink Manufacture
  • Jam, Jelly & Pickles Manufacturing
  • Job Typing & Photocopying Service
  • Jute Carpet Manufacturing
  • Leaf Cups Manufacturing
  • Library
  • Mat Weaving
  • Match Box Manufacturing
  • Milk Booth
  • Mutton Stalls
  • Newspaper, Weekly & Monthly Magazine Vending
  • Nylon Button Manufacturing
  • Old Paper Marts
  • Pan & Cigarette Shop
  • Pan Leaf or Chewing Leaf Shop
  • Papad Making
  • Phenyl & Naphthalene Ball Manufacturing
  • Photo Studio
  • Plastic Articles Trade
  • Pottery
  • Printing & Dyeing of Clothes
  • Quilt & Bed Manufacturing
  • Radio & TV Servicing Stations
  • Ragi Powder Shop
  • Readymade Garments Trade
  • Real Estate Agency
  • Ribbon Making​​
  • Sari & Embroidery Works
  • Security Service
  • Shikakai Powder Manufacturing
  • Shops & Establishments
  • Silk Thread Manufacturing
  • Silk Weaving
  • Silk Worm Rearing
  • Soap Oil, Soap Powder & Detergent Cake Manufacturing
  • Stationery Shop
  • STD Booths
  • Sweets Shop
  • Tailoring
  • Tea Stall
  • Tender Coconut
  • Travel Agency
  • Tutorials
  • Typing Institute
  • Vegetable & Fruit Vending
  • Vermicelli Manufacturing
  • Wet Grinding
  • Woollen Garments Manufacturing

Loans under Udyogini Scheme are offered by various financial institutions like co-operative banks, Regional Rural Banks (RRBs), and commercial banks at competitive interest rates. The scheme provides subsidies from the corporation for running business activities to only women entrepreneurs. Udyogini Scheme application form is available at the bank’s official websites.

FAQs on Udyogini Scheme

Q. What is the purpose of the Udyogini Scheme?

Ans. To promote women’s entrepreneurship and encourage the Small Scale Industry (SSI) sector by creating more employment opportunities and growth.

Q. How much loan I can get under the Udyogini scheme?

Ans. The maximum loan amount offered to a women entrepreneur under the Udyogini scheme is up to Rs. 3 lakh.

Q. Where Can I get a loan under this scheme?

Ans. Business loans offered under Udyogini schemes are offered by leading financial institutions. Some of the banks and NBFCs offering business loans under this scheme include Bajaj Finserv, Saraswat bank, Punjab and Sind Bank, Karnataka State Women’s Development Corporation (KSWDC), and many more.

Source

April 17, 2022 | Swayamsiddha Foundation

Stree Shakti Package

stree shakti

There is a lot of focus on promoting women entrepreneurship in India with the government and financial institutions having various schemes. One such scheme promoted by the State Bank of India (SBI) is Stree Shakti Package for Women Entrepreneurs. In this article, we look at the SBI Stree Sakthi Package for women Entrepreneurs in detail.

Stree Shakti Package Eligibility

Businesses operated by women entrepreneurs are eligible to receive a loan under Stree Shakti Package. For the purpose of identifying “Women Entrepreneurs” businesses, the definition recommended by the MSME Department of India will be applicable.  As per definition, a Women Entrepreneur business is “A small scale industrial unit/industry related service or business enterprise managed by one or more women entrepreneurs in proprietary concerns or in which she/they individually or jointly have a share capital of not less than 51% as partners /shareholders/Directors of Private Limited Company/Members of Co-operative Society.

Thus, women entrepreneurs or women entrepreneur business in retail trade, manufacturing or services are eligible for the scheme. Also, Women professionals like Doctors, Beauticians, Architects and Chartered Accountants can avail loan under the Stree Shakti package.

Amount of Loan

Loan in the form of term loan or working capital can be provided under the Stree Shakti package. The quantum of loan provided would be based on the borrower profile and the following guidelines:

• Retail traders: Rs. 50000 to Rs.2 Lakhs
• Business enterprises: Rs. 50000 to Rs.2 Lakhs
• Professionals: Rs. 50000 to Rs.25 Lakhs
• SSI: Rs. 50000 to Rs.25 Lakhs

As the package is aimed at Women Entrepreneurs, concessions or relaxations in the margin is in-built into the scheme along with the low floating rate of interest, linked to the base rate of the bank.

Collateral Requirement

It does not require any collateral for a loan of upto Rs.10 lakhs, extended to MSME enterprises owned by Women Entrepreneurs. Further, loans to women entrepreneurs of upto Rs.100 lakhs that can be covered under the CGTMSE scheme also requires no collateral. However, collateral is a must for any loan above Rs.1 crore or based on the borrower profile.

Documents Required

  1. Proof of identity: Voter’s ID Card/ Passport/ Driving License/ PAN Card/ signature identification from present bankers of the proprietor, partner or Director (if a company).
  2. Proof of residence:  Recent telephone bill, electricity bill, property tax receipt/ Passport/ Voter’s ID Card of the proprietor, partner or Director (if a company).
  3. Proof of business address
  4. Proof of Minority
  5. Last three years balance sheets of the units along with income/sales tax returns etc.
  6. Memorandum and articles of association of the Company/ Partnership Deed of partners etc.
  7. Assets and liabilities statement of promoters and guarantors along with latest income tax returns.
  8. Rent Agreement (if business premises on rent) and clearance from pollution control board if applicable.
  9. SSI registration if applicable.
  10. Projected balance sheets for the next two years in case of working capital limits and for the period of the loan in case of term loan.
  11. In case of takeover of advances, sanction letters of facilities being availed from existing bankers/ Financial Institutions along with detailed terms and conditions.
  12. Profile of the unit (includes names of promoters, other directors in the company, the activity being undertaken, addresses of all offices and plants, shareholding pattern etc.
  13. Last three years balance sheets of the Associate/Group Companies (If any).
  14. Project report (for the proposed project if term funding is required) containing details of the machinery to be acquired, from whom to be acquired, price, names of suppliers, financial details like capacity of machines, capacity utilization assumed, production, sales, projected profit and loss and balance sheets for the next 7to 8 years till the proposed loan is to be paid, the details of labour, staff to be hired, basis of assumption of such financial details etc.
  15. Review of account containing month wise sales (quantity and value both), production (quantity and value), imported raw material (quantity and value), indigenous raw material (quantity and value), value of stocks in process, finished goods (quantity and value), debtors, creditors, bank’s outstandings for working capital limits, term loan limits, bills discounted.
  16. Photocopies of lease deeds/title deeds of all the properties being offered as primary and collateral securities.
  17. Position of accounts from the existing bankers and confirmation about the asset being Standard with them (In case of takeover).
  18. Manufacturing process if applicable, the major profile of executives in the company, any tie-ups, details about raw material used and their suppliers, details about the buyers, details about major competitors and the company’s strength and weaknesses as compared to their competitors etc.
April 17, 2022 | Swayamsiddha Foundation

Cent Kalyani

Cent Kalyani Loan Scheme

Both the government and private sectors are working towards developing the Economy by bringing financial assistance to entrepreneurs. One of the major initiatives is the Cent Kalyani Scheme for women entrepreneurs. The scheme aims at helping women establish their own businesses or expand the existing one.

What is Cent Kalyani Scheme? Cent Kalyani Scheme is a unique loan scheme from the Central Bank of India. It aims at financing women’s business dreams and helps them expand their business too. This means, women can apply for this scheme to fund their working Capital, purchasing machinery or equipment or other relevant business needs. Women from micro and small enterprises can avail this loan scheme.

Cent Kalyani Scheme- Loan Amount & Interest Rate Under the Cent Kalyani Scheme, an applicant can avail a loan up to Rs. 100 lakhs along with a margin rate of 20%. The base interest rate is 9.70%. Cent Kalyani Scheme Loan Amount (INR) Interest Rate (%) Rs. 10 lakhs 9.70% + 0.25% = 9.95% Rs. 10 lakhs-100 lakhs 9.70% + 0.50% = 10.20 Purpose of Cent Kalyani Scheme Listed below are the purpose of the scheme- 1. To Cater One of the main objectives of Cent Kalyani Scheme is to cater women entrepreneurs and help them through various government priorities such as offer them jobs, loans, subsidies, etc. 2. To Identify Another objective is to identify women with needs and encourage them by giving financial assistance to achieve their goals. 3. To Guide One of the major motto objectives behind the scheme is to guide women with business expansion and other business needs. 4. To Co-ordinate One of the main objectives is to coordinate with government and non-government organisations to help more women to gain benefits from the bank’s scheme. Eligibility for Cent Kalyani Scheme Women involved in the following trade deals can apply for this scheme:.

Professionals (Doctors, Chartered Accountants, Architects, etc) Self-employed (Catering services, canteen service, beauty parlour, boutiques, daycare centres, tailoring services, etc) Documents Required for Cent Kalyani Scheme Following are the documents to be submitted: 1. Identity Proof Voter Id Passport Driving license PAN Card KYC documents 2. Address Proof Telephone bill Property tax Receipt Electricity bill Voter’s ID card 3. Income Proof Balance sheets Profit and loss account Other financial documents 4. Business Proof Profile of business enterprise Letters of Interest, understanding, continuity and hypothecation.

Source

Official Website

April 17, 2022 | Swayamsiddha Foundation

Consortia & Tender Marketing

consortia

Promotion of the product of Micro and Small Entrepreneurs is one of the major objective of the Corporation. In the present competitive scenario a need has been felt to facilitate Micro and Small Enterprises to market their goods / services individually or collectively through ‘Consortium’. Accordingly, the scheme for promoting the products of the MSEs has been reviewed in 2011 & named as “Consortia and Tender Marketing Scheme”.

1. The special features of the scheme:-

  • (i) The scheme will cover Micro & Small Enterprises registered with NSIC under its Single Point Registration Scheme (SPRS). It would also cover Micro & Small Enterprises who apply to get themselves registered with NSIC under the SPRS along with all required documents in terms of the scheme and their factory is inspected before filing of tender in terms of the Tender Marketing Scheme.
    The scheme shall not cover unit(s) engaging in ‘trading activities’ without value addition/packing/ branding.
  • (ii) The scheme also covers the method of selection of the units for participation in the open tenders and single tenders on nomination basis.
  • (iii) The scheme takes cares of providing EMD and security deposit on back to back basis.
  • (iv) The scheme inter alia includes the procedures for 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’ to secure orders in ‘bulk’ quantities, distribution of orders amongst units in a ‘consortia’ as per their capacities, facilitate the ‘consortia’ members in meeting their raw materials requirements & facilitating ‘Credit’ for the supplies made.
  • (v) To accommodate provisions of this scheme, the legal document such as individual agreement by the units, agreement to be executed by the consortium, board resolution, power of attorney and other related document have been revised and simplified.
  • (vi) For facilitating promotion and development of Micro & Small Enterprises, the Government of India, Ministry of MSME vide Gazette Notification No. S.O. 581(E) dated 23rd March, 2012 has circulated the Public Procurement Order 2012 for MSME. In the above Public Procurement Order, the Govt. of India has mentioned that that “Annual goal of procurement also include sub-contracts to Micro and Small Enterprises by large enterprises and consortia of Micro and Small Enterprises formed by National Small Industries Corporation”.
  • (vii) NSIC formed Consortia of Micro & Small Enterprises under its Consortia & Tender Marketing Scheme and is supplying the required stores / items and rendering the services as required by the Govt. Depts. / PSUs. NSIC offices continuously monitor the consortia and form new ones depending upon the requirements.

2. APPLICATION FORM:

The application form, in the prescribed format (Annexures – A and A-1) for enlistment under the Tender Marketing Scheme is to be submitted by the applicant Micro & Small Enterprise (MSE), duly signed by the authorized signatory i.e. Proprietor / Partner(s) / Director(s) of the firm / company / society along with the documents mentioned in the application form. These documents would also suffice wherever the enlisted unit wants to participate in the tender and /or form/join a consortium.

3. FIXATION OF LIMIT FOR TENDER PARTICIPATION:

  • 3(a)In respect of enlisted units willing to participate in tender through NSIC, the branch office shall fix an overall limit up to which the tender(s) can be participated on behalf of such unit at any point of time. The limit shall be the higher of:
    1. 300% of the monetary limit fixed for the unit under the Single Point Registration Scheme, or
    2. Last year’s turnover, (The ‘Last year’s turnover’ should be turnover for a financial year and the same may either be as per the last audited accounts or as per the provisional results for a financial year, duly certified by the Chartered Accountants).
    3. Where during the financial year in progress the unit has recorded an appreciable hike in its turnover (duly certified by the Chartered Accountant) with which it exceeds its last year’s turnover or the overall limit as mentioned at (i) above, benefit shall be extended to such units and their overall limit may be fixed at the highest value amongst i, ii, or the value of turnover during the financial year in progress.
  • 3(b)While fixing the overall limit the operating and installed capacity of the unit may also be considered.
  • 3(c)The fixation of the limit shall be done by the committee consisting of the Branch Head, Accounts Head and Business Head.
  • 3(d)The limit so fixed shall remain valid for a year and is subject to review/ renewal annually.
  • 3(e)While deciding the overall limit to be fixed for units operating as a consortium, the limits fixed in respect of individual unit as per procedure mentioned above, shall be clubbed. The limit so fixed for a consortium shall remain valid for a year and is subject to review/ renewal annually.
  • 3(f)In case a consortium gets expanded (by the additions of a unit / units) and / or shrunk (by the withdrawal of a unit / units) then:
  • 3(g)On expansion of the consortium, the overall limit shall be enhanced after working out the limit in respect of the unit / units added by fixing their limits as per the procedure mentioned above.
  • 3(h)On withdrawal of unit / units from a consortium, the overall limit shall stand reduced equivalent to the limit fixed in respect of such units.
  • 3(i)However, the limit of the unit shall get vacated to the extent of the order already executed. (For example a unit having a limit of Rs. 15 crore and an order in execution for Rs. 10 crore out of which it has already executed order worth of Rs. 3 crore, the balance limit available for tender participation at this point shall be Rs. 8 crore).

After completion of the above, in respect of units found fit for enlistment under the scheme, an Enlistment Letter shall be issued by the branch.

  1. Annual Fee Structure of Enlistment & Renewal under Consortia & Tender Marketing SchemeS.No.CategoryAnnual / Renewal Fee1.If Monetary Limit under SPRS is up to Rs. 100 lacsRs. 1,000 + GST2.If Monetary Limit under SPRS is more Rs. 100 lacs and up to Rs. 500 lacsRs. 2,500 + GST3.If Monetary Limit under SPRS is above Rs. 500 lacsRs. 5,000 + GST4.Units owned by SC/ST entrepreneurs are exempted from the enlistment fee5.There will be no fee for the formation of new / renewal of Consortia. However, while at the time of participation in tender by consortia members, enlistment fee mentioned above will be applicable.
  2. SERVICE CHARGES UNDER CONSORTIA & TENDER MARKETING SCHEME (on line/off line) Opender Tender/Limited enquiries/nomination basis/Repeated Orders etc.

    The service charges for various types of above said tenders are proposed on the basis of value of tender irrespective of their category.Tender value (Rs.in Cr.)Revised Service charges on Bill value before GST (%)IndividualConsortiaUp to 5545-104310 & above32.5
    In case of micro units we may reduce the service charges by 0.5% on the above said charges.
    In case EMD /and/ or Security Deposit are arranged by NSIC 1% Additional Service Charges would be charged. The said service charges are excluding GST. The services charges shall be deducted from the payment receipt from the buying department and after deducting eh service charges balance amount may be released to the MSE/Consortia. .
    Note:
    Where the NSIC is required to participate in pre-dispatch inspection team along with the buyer department or other agency, a higher rate of service charge can be levied on case to case basis.

Validity of Consortia Agreement

Consortium agreement entered into between the Corporation and Consortium shall be valid till officially liquidated by all members and the intimation being served on the respective branch that they (Consortium) do not want to continue as a Consortia members. However, in case of inclusion of new member/s or member/s leaving the consortia of change in Constitution of any member , fresh agreement may be obtained. In order to ascertain the change in the Constitution or addition/deletion of the members, a declaration to the effects to be taken from consortia members that their consortium is alive and there is no change.

April 17, 2022 | Swayamsiddha Foundation

NSSH

National Scheduled Caste and Scheduled Tribe Hub

India is witnessing rapid growth and prosperity. For this to be truly inclusive, all sections of the society need to partake in this prosperity. Besides wage employment and education, the marginalized sections of the society also need to envision, create and scale – up ventures to be a major participant in this growth story. While in the past, there has been some increase in the number of SC/ST owned enterprises, this needs to increase substantially to enable the socio-economic empowerment of the SC/ST communities. In this context, the National SC/ST Hub is an initiative of the Government of India targeted towards developing a supportive ecosystem towards SC/ST entrepreneurs.

The National SC/ST Hub (NSSH) would provide professional support to the SC/ST enterprises thereby enabling them to effectively participate in public procurement process. This would involve participation by CPSEs/Central Ministries, States, Industry Associations such as DICCI and others. The Hub would also work towards the development of new entrepreneurs to participate in procurement process leveraging on the ‘Stand up India’ programme. Selected entrepreneurs would be provided with support and mentoring by industry experts, CPSEs, and incubators.

To start with, the Ministry of Micro, Small and Medium Enterprises (M/o MSME), has made an initial allocation of Rs. 490 Crore for the period 2016-2020 for the National SC/ST Hub. Discussions with various stakeholders have enabled the Ministry to create an initial agenda for action on this front. While the agenda for action is flexible and would evolve with further inputs from stakeholders and more robust data, initially it attempts to address gaps that exist across multiple drivers of the entrepreneurial eco-system.

The Hub would operate out of the National Small Industries Corporation (NSIC) headquartered in Delhi, supported by a special cell created for this purpose. All new and existing SC/ST entrepreneurs would be registered on the MSME Databank (www.msmedatabank.in) of the Ministry of MSME that would form a reliable database to enhance accessibility for the procurement agencies. A separate website www.scsthub.in has been launched to apprise the stakeholders about the activities of the Hub.

High Powered Monitoring Committee

Minister of MSME is the chairperson of the committee. The committee members are representatives of various stakeholders including states, various ministries, industry associations & SC/ST entrepreneurs.

Advisory Committee

The Chairperson of this committee is Shri Milind Kamble, Chairman, DICCI (Dalit Indian Chamber of Commerce & Industry). This committee would work under the High Powered Monitoring Committee in order to bring the industry and SC/ST entrepreneurs’ perspective to the Hub with the purpose of developing an effective, mutually beneficial relationship between the target group and the Government.

Empowered Project Approval Committee

Secretary, Ministry of MSME chairs this committee. As the Hub is dynamic in nature and would evolve over the envisaged period, requirement of funds for various activities is likely to evolve depending on the emphasis areas or changes in identified focus areas. This Committee would ensure such flexibilities with a view to accommodate changing requirements of SC/ST entrepreneurs.

Visit National SC / ST Hub

April 17, 2022 | Swayamsiddha Foundation

Raw Material Assistance

nsic registration

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

ParticularsEffective Rate of Interest(% per Annum)
Normal Interest (Compounded on monthly rest)MICROSMALLMEDIUM
Upto 180 Days
(i) Units (SMEs) having valid SME 1 rating*7.508.009.00
(ii) Units (SMEs) having valid SME 2 rating*8.008.509.00
(iii) Other units8.509.009.00

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 days1.25% per quarter

Processing Fee :

Processing FeeMICROSMALL AND MEDIUM
On new sanctions1.0% p.a.1.0% p.a.
On Renewal0.5% p.a.1.0% p.a.

For Detailed Information, Click Here

April 17, 2022 | Swayamsiddha Foundation

NSIC Credit Facilitation

loan

To meet the credit requirements of MSME units, NSIC has entered into a Memorandum of Understanding with various Nationalized and Private Sector Banks. Through syndication with these banks, NSIC facilitates MSME in accessing credit support (fund based or non-fund based limits) from the banks. NSIC assists MSMEs in completion of the documentation for submitting the proposals to the banks and also does the follow up with the banks. These handholding support are provided by NSIC without any cost to the MSMEs.

Name of the BankWebsite
Yes Bankwww.yesbank.in
IndusInd Bank Ltd.www.indusind.com
Federal Bank.http://www.federalbank.co.in
Kotak Mahindra Bankwww.kotak.com
ICICI Bankhttps://www.icicibank.com
AU Small Finance Bankhttps://www.aubank.in
Bank of Maharashtrawww.bankofmaharashtra.in
Bank of Barodawww.bankofbaroda.in
Axis Bankwww.axisbank.com
State bank of Indiahttp://www.sbi.co.in
Central bank of Indiawww.centralbankofindia.co.in
Canara Bankwww.canarabank.in
Tata Capital Financial Services Ltd.www.tatacapital.com
Cointribe Technologieswww.cointribe.com
Union Bank of Indiahttps://www.unionbankofindia.co.in
HDFChttps://www.hdfcbank.com/
Karnataka Bankhttps://karnatakabank.com

Frequently Asked Questions (FAQs)

Detailed Information

April 16, 2022 | Swayamsiddha Foundation

Sthapan

funding

FINANCIAL ASSISTANCE

  • Financial assistance to Greenfield Units for setting up new units which includes:
  • purchase of land,
  • construction of factory building,
  • purchase of equipment, plant & MFA etc.

Key Features

  • Attractive RoI
  • Quicker sanction

Eligibility

  • New Entities or Greenfield units are eligible
  • Promoters should have minimum 5 years of business experience
  • Promoters Contribution – Minimum 25% Standard Norms apply (CIBIL / CMR, due diligence checks etc.)

Target Groups

MSMEs setting up units in identified sectors under (as per the list identified by GoI), high growth / sunrise sectors and other important sectors

Loan Amount & Validity

  • TL upto `2000 Lakh, subject to maximum of 75% of the project cost
  • Till October 31, 2022 (or) utilization of the corpus as allocated/decided from time to time, whichever is earlier.

Rate of Interest

  • Interest Rate- 6.00% to 7.30% p.a. for first year with reset applicable thereafter (as per internal rating)
  • Repayment – Generally upto 7 years
  • Moratorium – Upto 2 years

Details : Click here

April 16, 2022 | Swayamsiddha Foundation

Ubharte Sitare Programme

loan

Target Group

  • Future export champions with high potential
  • Units having unique technology, products or processes
  • High export potential sectors, i.e. Automobiles, Aerospace & Defence, Chemicals, Food Processing, IT & ITeS, Pharmaceuticals, Precision engineering, Textiles and allied sectors, etc.

Loan Amount

  • Need based financial assistance, subject to maximum of 80% of the project cost.
  • Joint financing with EXIM Bank available.

Key Features

  • Attractive RoI
  • 20% promoters’ contribution (30% for greenfield units)
  • Facility of TL/FCTL available
  • Technical Assistance for mentorship support, equity support, etc.
  • Upto 25 bps performance / milestone linked interest incentive.

Interest Rate

  • Interest Rate – Based on MCLR of the Bank / Repo rate, with applicable spreads (as per internal rating)
  • Repayment – Generally upto 6 years (Extendable upto 10 years)
  • Moratorium – Upto 2 years

Eligibility

  • New units – Promoters having sufficient experience in the proposed line of business and major projected revenue from exports. For units co-funded by technocrats from premier institutions (like IIT, IIM, IISc, NIT etc.), sufficient experience in the proposed line of business shall not be insisted upon.
  • Existing units – Fundamentally strong export oriented small and mid-sized companies with satisfactory financials.
  • Standard Norms apply (CIBIL / CMR, due diligence checks, etc.)

Details : Click here