Credit Facilitation through Bank - NSIC Scheme

The NSIC Credit Facilitation Scheme aims to assist MSMEs in accessing credit from various banks. NSIC facilitates this by acting as an intermediary, helping MSMEs with bank documentation and following up on loan applications.

What is the Credit Facilitation Scheme?

This scheme enables MSMEs to easily obtain loans from a network of banks by providing them with necessary support and guidance. NSIC has partnered with various public and private sector banks to facilitate credit access for MSMEs.

Key Objectives of the Scheme

· Simplified Loan Access: Facilitate easier access to credit for MSMEs by simplifying the loan application process.

· Reduced Documentation Burden: Assist MSMEs in completing the necessary documentation for loan applications.

· Bank Relationship Building: Connect MSMEs with suitable banks and facilitate the loan application process.

· Improved Credit Flow: Enhance the flow of credit to MSMEs by streamlining the loan application and approval process.

Eligibility Criteria for the Scheme

· MSME Registration: The applicant unit must be registered as an MSME.

· Loan Requirement: The MSME unit must require a loan from a bank for business purposes.

Benefits of the Scheme

· Simplified Application Process: Assistance in completing bank loan application forms and other necessary documentation.

· Bank Relationship Building: Access to a network of partner banks for loan applications.

· Reduced Documentation Burden: Reduced stress and time spent on loan application procedures.

· Increased Loan Approval Chances: Enhanced chances of loan approval due to streamlined documentation and focused follow-up by NSIC.

How to Apply for the Scheme?

1. Approach NSIC: Visit the nearest NSIC branch office and submit a request for loan assistance.

2. Bank Selection: Choose a bank from the list of partner banks under the scheme.

3. Documentation Assistance: Receive assistance from NSIC officials in completing the required bank loan application forms and other documents.

4. Loan Application Submission: Submit the completed loan application to the chosen bank.

5. NSIC Follow-up: NSIC will follow up with the bank on the loan application status.

Documents Required for Application

· Proof of Business: Udyam Registration, proof of business address, business license, etc.

· Financial Documents: Balance sheets, income tax returns, projected financials, etc.

· Legal Documents: Partnership deed, Memorandum and Articles of Association (if applicable), etc.

· Clearances: Pollution Control Board clearance, electricity board sanction, etc.

· Personal Documents: Aadhar Card, PAN Card, income tax returns, etc. (of proprietors/directors)

· Other Documents: As per specific bank requirements and loan purpose.

FAQs About the Scheme

1. Is there any cost for using the NSIC Credit Facilitation Scheme?
No, there is no cost to MSMEs for utilizing this scheme.

2. Which banks are part of this scheme?
Several public and private sector banks, including SBI, PNB, ICICI Bank, HDFC Bank, etc.

3. What types of loans can be availed through this scheme?
Term loans, working capital loans, overdrafts, letter of credit, bank guarantees, etc.

4. Does NSIC guarantee loan approval?
No, NSIC facilitates the loan application process but does not guarantee loan approval. Loan approval depends on the bank's assessment and creditworthiness of the MSME.

Why Should You Apply for the Scheme?

The NSIC Credit Facilitation Scheme provides valuable support to MSMEs in their quest for accessing credit. By simplifying the loan application process and providing guidance, the scheme helps MSMEs overcome common challenges faced in obtaining finance, thereby fostering their growth and contributing to the overall economic development of the country.

Conclusion

The NSIC Credit Facilitation Scheme plays a crucial role in supporting the growth and development of MSMEs in India. By providing a platform for easy access to credit and offering valuable assistance in navigating the loan application process, the scheme empowers MSMEs to achieve their business goals and contribute to the nation's economic progress.