46 XX | Enlightener Series | B. Central Government Schemes

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…

Bank Credit Facilitation Scheme was launched by National Small Industries Corporation (NSIC), a Government of India (GOI) Enterprise, to provide FREE credit facilitation support to large number of Micro, Small, and Medium Enterprises (MSMEs) to meet their credit requirements (fund or non-fund based limits) from Public & Private Sector Banks empanelled with NSIC (Lender Banks) based on their respective lending policies.

This credit facilitation support includes hand holding & assisting MSMEs in completion of all documents as required by the Lender Bank for further submission and following up post submission. A focused attention is given to credit proposals sponsored by NSIC.

How is it being implemented?

Under this Scheme, direct credit facilitation assistance is provided exclusively to,

Existing & New MSMEs

NSIC has tied up with various Public & Private Sector Banks via a Memorandum of Understanding (MOU). Through syndication with these Banks, NSIC facilitates credit support to MSMEs (fund based or non-fund based limits) from these Banks. Please scroll here to find the list of these empanelled Banks.

What’s on offer?

Under this Scheme, NSIC, through its Financial Facilitation Centres (FFCs), assists MSMEs in:

Facilitating credit by having an integrated mix of various Lender Banks
Providing an option for MSMEs to apply for a new Lender Bank or switch over of an account to a different Lender Bank as per tie up arrangements
Assistance in completion of the documentation for submitting the proposals to Lender Bank, submitting to Lender Bank, and subsequent follow ups
Facilitating larger number of MSMEs who are desirous of availing credit
Providing handholding support to MSMEs

The handholding and other support, as mentioned above, is provided without any cost to the MSMEs.

Given below are the details of credit that is syndicated for MSMEs from Lender Banks:

I. Product:

Term Loan
Working capital limits in the form of cash credit, overdraft against book debts and bill discounting facility
Non fund based limits such as guarantees, letter of credit, foreign bank guarantees, foreign letter of credit etc.
Ticket Size: No limit has been prescribed on ticket sizes of loans, and they will be based on the funding needs & requirements of MSMEs vis-à-vis Lender Bank’s assessment

II. Purpose:

Acquisition of or investment in fixed assets
Working capital requirements

III. Borrower Type

Per the Lender Bank’s Policy

IV. Security or Collateral or Guarantee or Insurance

Per the Lender Bank’s Policy

V. Interest Rate

Per the Lender Bank’s Policy

VI. Processing Fee

Per the Lender Bank’s Policy

VII. Margin Money Requirement

Per the Lender Bank’s Policy

VIII. Tenure, Repayments & Pre-Closures

Tenure: Per the Lender Bank’s Policy

Repayment: Per the Lender Bank’s Policy
Pre-payment & Foreclosure Charges: Per the Lender Bank’s Policy

IX. Turnaround Time

Per the Lender Bank’s Policy

Interested? Read ahead to check your eligibility….

I. Is you business an MSME unit defined as per MSMED Act?

If your answers to the questions above are an emphatic YES, you are all set to avail loan under NSIC’s Bank Credit Facilitation Scheme!

So…how big is this scheme and what has been done so far?

I. During 2023-24, credit amounting to ₹513.97 Crores were sanctioned under this Scheme against MOU target of ₹488.50 Crores

II. Refer to a borrower testimonial video here

So, now, how should you go about it?

I. For submitting application:

Check the Lender Banks eligible for extending loans under this Scheme here to shortlist the FIs you are interested in availing loans from
Approach any one of the 160 NSIC branch offices nearest to you to submit a request for loan requirement from any of the Lender Banks. The official sitting at the branch will provide hand holding support by assisting them in completing all documentation as required for further submission to the bank
Alternatively, you can express your interest online here

II. For information on indicative list of documentation requirement, click here to check out Q14 under FAQs

III. For any queries, please contact NSIC via