Disclaimer….before you read ahead!
The information contained herein is of a general nature and for information purposes only, with the intent of raising awareness around various resources, schemes etc. available for women entrepreneurs in India. It is not intended to address the circumstances of any particular individual or entity. It does not purport to be all-inclusive or necessarily contain all the information that may be relevant for the reader, and may be subject to updation, revision or amendment. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to remain accurate in the future. The reader, therefore, is required to exercise their discretion; and not act on such information without appropriate professional advice after a thorough examination of the particular situation.
Furthermore, we are not a lender and are not authorized by the Reserve Bank of India to act as one. By disseminating the information contained herein, we are not soliciting any borrower or customers for the company or organization mentioned herein nor do we intend to syndicate any capital for the reader of this article.
About this scheme…
Bill Discounting Scheme was launched by National Small Industries Corporation Ltd. (NSIC) to discount of bills/invoices arising out of genuine trade transactions i.e. supplies made by Micro, Small and Medium Enterprises (MSMEs) to reputed Purchaser Entities.
How is it being implemented?
Under this Scheme, direct credit is provided exclusively to,
- Purchaser Entity who may approach NSIC for sanction of annual limits (Purchaser-wise limits) by providing details about the MSMEs who are supplying the goods or services to them. Bills (Bill of Exchange) drawn by these MSMEs for the supplies made by them and duly accepted by the Purchaser will be discounted against security of Bank Guarantee to be provided either by the Purchaser or Seller, in favour of NSIC
OR
- Seller Entity: Bills (Bill of Exchange) drawn by MSMEs against their supplies made and duly accepted by the Purchaser will be discounted by NSIC. Annual limits (Seller-wise limits) can be fixed by NSIC for such Seller
Both the Purchaser & Seller Entity should be involved in manufacturing or services business, excluding traders.
What’s on offer?
I. Product
- Bill Discounting
II. Purpose
- Working capital requirements
III. Borrower Type
- Eligible Seller Entities: MSMEs
- Eligible Purchaser Entities: Public Limited Companies, State & Central Government Departments or Undertakings, Private Limited Companies
IV. Security or Collateral or Guarantee or Insurance
- Security: For more information around this, please contact NSIC via means mentioned below
- Collateral: Bank Guarantees by Seller or Purchaser Entity issued by approved Banks equivalent to the value of assistance
- Guarantee: Personal Guarantee of Proprietor or Partners or Directors, as the case may be
- Insurance: For more information around this, please contact NSIC via means mentioned below
V. Interest Rate
- Referred to as Discounting Rate for this Scheme
- Currently ranges between 8.00% to 9.75% per annum depending upon the classification as Micro, Small or Medium Enterprise, and Credit Rating. Please scroll here for details
- Additional Rate of Interest at 1.25% per quarter for overdue period
VI. Processing Fee
- 1.00% per annum for new sanctions & renewals
- Renewals for Micro Enterprises at 0.50%
VII. Margin Money Requirement
- Nil
VIII. Tenure, Repayments & Pre-Closures
- Tenure: Also referred to as Usance Period of Bills (Bill of Exchange), shall not exceed 180 days
- Repayments: Bullet payment
- Pre-payment & Foreclosure Charges: For more information around this, please contact NSIC via means mentioned below
IX. Turnaround Time
- For more information around this, please contact NSIC via means below
Interested? Read ahead to check your eligibility….
I. As an applicant, you identify yourself as
- An MSME engaged in manufacturing or service activities (excluding trading) and supplying to reputed Purchaser Entities as described above?
OR
- A reputed State and Central Govt. Department or Undertaking, Public Limited Company or Private Limited Company engaged in manufacturing or service activities (excluding trading) and procuring goods & services from MSMEs?
If your answers to the questions above are an emphatic YES, you are all set to avail bill discounting under NSIC’s Bill Discounting Scheme!
So…how big is this scheme and what has been done so far?
I. During 2023-24, total bills amounting to ₹ 40.56 Crores were discounted against Bank Guarantee
So, now, how should you go about it?
I. For submitting application, please take this dully filled form to any one of the 160 NSIC offices & technical centres nearest to you
II. For list of documentation required, please refer here
III. For any queries, please contact NSIC via
- Call: +91 11 26926275 | +91 11 26926370, Monday to Friday 9:30 AM to 6:00 PM
OR
Go on then…and do spread the word!
Best,
Sources:
