Raw Material Assistance Scheme.

The scheme gives an opportunity to MSMEs to focus better on manufacturing quality products.

Raw Material Assistance Scheme.

In order to assist MSMEs, the Raw Material Assistance Scheme finances the acquisition of raw materials (both indigenous & imported). MSMEs now have the chance to concentrate more on producing high-quality goods.

Scheme Benefits and Highlights.

> The following benefits are provided under the scheme:

>Assistance with finances (credit) for up to 90 days during the raw material purchase process.

>Through cutting out the middlemen, materials made possible by bulk supply agreements are given at the bulk supplier's rate, lowering the cost of the goods.

>MSMEs benefit from discounts obtained through bulk supply agreements by sharing them with them to lower their material acquisition costs (Economies of scale).

> The ability of MSMEs to fulfil their orders and the availability of raw materials on credit.

Eligibility.

Any manufacturing MSME with a Udyog Aadhaar Memorandum (UAM) is eligible to seek support through the scheme.

More details can be found at: http://www.nsic.co.in/pdfs/FAQ_RMA_102016.pdf

Registration Process.

Entrepreneurs and any MSME that requires raw materials through NSIC may submit an application for raw material assistance to any NSIC field office using the specified forms, which are available for free from any of the field offices or may be downloaded from NSIC's website (www.nsic.co.in). You can submit the properly completed application form to the NSIC branch office that is most convenient for you, along with the required documentation. Information about NSIC offices can be found at www.nsic.co.in.

More details can be found at: http://www.nsic.co.in/pdfs/FAQ_RMA_102016.pdf

Documents are to be enclosed with the Application Form.

1. Each proprietor, director, partner, and officer of the society must provide a passport-size photo.

2. Self-attested photocopies of the following documents: i. UAM; ii. GST Registration Certificate; and ii. PAN Card of the Firm or Proprietor, all with your signature (in the case of a proprietorship concern), iii. Copy of the company's/firm's/most directors'/partners'/proprietor's recent ITR

3. The residential address of the proprietor, directors, partners, and office holders of the society, along with a self-attested declaration of their individual assets and liabilities.

4. In the case of a Pvt. Ltd. or Ltd. Co., a copy of the Memorandum and Articles of Association and a list of Directors.

OR, if a partnership is involved, a duly notarized copy of the partnership agreement.

or, in the case of a society, a copy of the bylaws and charter, as well as a list of the members of the executive or governing body.

5. A copy of the board resolution, in the case of a private or public limited company, the power of attorney, in the case of a partnership firm, or the resolution of the governing body, in the case of a society, authorising the signatory to sign and to communicate with NSIC regarding the need for financial assistance on behalf of the applicant unit.

6. Bank-attested specimen signatures of authorised signators.

7. a copy of the credit limit sanction letter from the financial institution or bank

8. The unit's audited or provisional financial statements:

  1.  a year ago, accounts that have been audited
  2. Provisional financial statements for the current year.
  3. Bank statements for the previous six months; current year estimates for newly established MSME units.

9. suitably attested by the unit's auditors or chartered accountants.

10. A copy of a recent utility bill

11. Conduct a Report of the Account of the Unit with Banks and Financial Institutions Other Than the BG Issuing Bank.

12. The borrower must certify or guarantee that neither their names nor the names of the company, its owners, associates, sister companies, or members are included in the CIBIL or RBI Defaulters List or that no legal action has been taken against them.

13. If the limit is increased over five crores, a copy of the orders is in your possession.

More details about documents needed after sanctioning of limit and before disbursement: http://www.nsic.co.in/Schemes/Raw-Material-Against-BG.aspx