Raw Material Assistance Scheme — NSIC Credit up to ₹20 Cr for MSMEs — Frequently Asked Questions
Answers to the questions founders most often ask about Raw Material Assistance Scheme — NSIC Credit up to ₹20 Cr for MSMEs — who qualifies, the funding amount, required documents and how the application works.
Frequently asked questions
How much funding can I get under this scheme?
The maximum exposure is ₹20 crore at the group level and ₹10 crore for a single manufacturing unit. There are also lower limits for service and infrastructure units: ₹6 crore and ₹5 crore respectively at single-unit level, and ₹15 crore for service groups.
What is the application deadline?
The scheme is rolling and always open, so you can apply at any time.
Who is eligible to apply?
Any Manufacturing or Service MSME with a valid Udyam Registration Certificate can apply. Trading activities are not allowed.
Is Udyam registration required?
Yes, a valid Udyam Registration Certificate is mandatory to avail assistance under this scheme.
Does the scheme take equity?
No, this is a debt-based credit facility. It is a repayable loan, so NSIC does not take any equity stake in your business.
How do I apply for the scheme?
Download the application form from the official NSIC website (www.nsic.co.in) or collect a blank form free from any NSIC Branch Office. Fill it out completely, attach the required documents, and submit it to your nearest NSIC Branch Office.
What documents are typically needed?
You will need identity proofs, your Udyam Registration, GST Certificate, financial statements, bank statements, and relevant resolutions. All documents should be self-attested.
What is the credit period and what happens if I don't repay in time?
The credit period is 180 days, extendable on request with Zonal Head consent if within the Bank Guarantee limit. If repayment is not made within 180 days, an additional interest of 1.25% per quarter applies on top of the normal rate.
How does NSIC disburse the funds?
NSIC makes direct payment to your raw material supplier, not to you. You submit a proforma/original invoice or material receipt note, and NSIC releases payment to the supplier up to 95% of the Bank Guarantee value.
Can I use the credit for trading activities?
No, trading activities are explicitly not allowed under this scheme. Only manufacturing and service MSMEs are eligible.
Is DPIIT recognition required for Raw Material Assistance Scheme — NSIC Credit up to ₹20 Cr for MSMEs?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Raw Material Assistance Scheme — NSIC Credit up to ₹20 Cr for MSMEs, though having it can strengthen your application and unlock other benefits.
Who offers Raw Material Assistance Scheme — NSIC Credit up to ₹20 Cr for MSMEs?
Raw Material Assistance Scheme — NSIC Credit up to ₹20 Cr for MSMEs is offered by National Small Industries Corporation (NSIC), a government body. It is provided as non-dilutive funding.
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