NSIC: What is the Subsidy Scheme? The Support & Benefits

We all know that MSME or the Micro, Small, and Medium Enterprises sector constitutes a significant part of the Indian economy. It employs nearly 25% of the non-agricultural workforce of the nation. MSMEs offer the opportunity to equitably distribute national wealth and income while industrialising rural areas.

The Indian MSME landscape is considerably changing owing to the global economic advancements. In a bid to facilitate the growth of MSMEs, the government established NSIC MSME, which stands for National Small Industries Corporation under the Ministry of Micro, Small & Medium Enterprises.

What is the National Small Industries Corporation (NSIC) Subsidy?

NSIC is a government of India certified enterprise. Its mission is to support and promote MSMEs throughout the country by offering them integrated support services. It works in close contact with MSMEs with the help of its presence in the form of technical centres and offices across different locations.

NSIC has a set of exclusive schemes that are tailor-made to provide them with a competitive position in the financial market. These integrated services or NSIC subsidy schemes can fall under the marketing, finance, technology, and other support services category.

Additional Read: How to Get a Small Business Loan from the Government

Objectives of NSIC

The primary objectives of the National Small Industries Corporation (NSIC) include:

1. Promoting, supporting, and fostering the growth of businesses by creating business opportunities.

2. Upgrading skill of existing and new employees.

3. Increasing profitability of the business by enhancing business productivity and efficiency.

4. Facilitating access to credit, technology, and market opportunities.

Functions of NSIC

NSIC plays a pivotal role in empowering small businesses through-

1. Financial support: NSIC runs various schemes to offer financial assistance to MSMEs for various purposes, including sourcing raw material from within and outside the country, fulfilling working capital needs, and so on.

2. Marketing assistance: NSIC aids business in marketing for their ventures.

3. Entrepreneurial training: NSIC provides entrepreneurship training to budding entrepreneurs and unemployed individuals to encourage new business opportunities. 

4. Technological support: Eligible individuals can access technical services through NSIC Technical Services Centres and other centres established across the country. 

5. Single point registration: NSIC registers MSMEs under the Single Point Registration Scheme that allows them to share tender for government procurement. 

Schemes under NSIC

• Raw material assistance scheme: For MSMEs in the manufacturing industry, this scheme offers customized high-value loans of up to Rs. 15 crores for raw material procurement in the form of credit or advance payment.

• MSME global mart: Under this scheme, NSIC offers infomediary services offering key statistical data and information on business and technology to demonstrate the competence of MSMEs.

• Bank credit facilitation: NSIC partners with top financial institutions and banks in India to offer MSMEs with the necessary credit support to meet their capital and financial needs.

• Marketing intelligence scheme: This scheme helps in understanding the existing market scenario, the demands, needs, preferences, behaviour, and attitudes of potential customers.

• Single point registration scheme: MSMEs can make government purchases via a one-point registration process.

• Government schemes under NSIC: Various schemes have been introduced for the SC/ST group to help them start or grow their business.

Benefits of NSIC registration

NSIC registration provides a range of advantages for small businesses including, 

• Guidance to ensure the best interest of MSMEs.
• MSMEs can get credit and loan facilities from top private and public lending institutions under the scheme.
• Support during the documentation process for MSMEs.
• It provides the flexibility to switch from one financial institution to another.
• Holistic support to MSMEs. 

Additional Read: Best Way to Get an MSME Business Loan

Registration Process

Here’s how you can register for the NSIC scheme-

1. Fill in the application form for NSIC and submit it by paying the registration fees and uploading the required documents.

2. The documents will be verified by the Nodal officer. If there is a discrepancy, the applicant will be informed. 

3. After verification of documents by the Nodal officer, they will be forwarded to the inspecting agencies.

4. After approval from the inspecting agency, a report will be generated and the NSIC registration certificate will be issued.

Documents Required

• Identity proof 
• Personal and business address proof
• Entrepreneurs’ memorandum or partnership deed
• Rent agreement or lease deed
• Latest income tax returns
• Properly filled application form
• SSI registration fees
• Forecasted balance sheet for the next 2 years
• Balance sheet for the last 3 years
• CMA data (if the loan amount is above Rs. 100 lakhs)
• Certificate from pollution control board, electricity board
• Value of stock, sales data, and monthly production, list of debtors and creditors, and other business information

NSIC Registration Fees and Charges

The NSIC registration fees varies based on the annual turnover of the business-

If the business turnover is less than Rs. 1 crore-

• Micro enterprises- Rs. 3000
• Small enterprises- Rs. 5000

If the business turnover is more than Rs. 1 crore

• Micro enterprises- Rs. 3000 plus additional Rs. 1500 for every extra crore
• Small enterprises- Rs. 5000 plus additional Rs. 2000 for every extra crore.

Are you looking for Business Finance?

The flexible financing schemes of Tata Capital make the process of availing of a loan straightforward. Once you meet the business loan eligibility, you can receive the funds within a short time. We believe in accommodating unique business needs.

Our SME working capital will enable you to meet your in-hand operational expenses by processing a quick loan. Also, our structured EMI options and multiple product offerings make us your perfect financing partner.

Rely on our highly competent staff to receive best-in-class services to apply for an SME term loan. Get in touch today to get quick credit!