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National Small Industries Corporation (NSIC)

Bill Financing

Bills drawn by small scale units for the supplies made to the reputed and well established enterprises and duly accepted by them will be financed / discounted by NSIC for a maximum period of 90 days.

Working Capital Finance

Finance for augmenting working capital of viable and well managed units, on selective basis in case of emergent requirements, to enable them to payoff their purchases of consumable stores and spares and production related overheads particularly electricity bills, statutory dues, etc.

Export Development Finance

Finance for export development to export oriented units for meeting their emergent requirements. Pre and post shipment finance shall also be provided to such units at usual terms & conditions.

Equipment Leasing Scheme

The object of the Leasing Scheme is to assist SSI Units to procure industrial equipment for modernisation, expansion and diversification of their industries.

ELIGIBILITY

Exclusively for existing && financially viable SSI units including ancillary units, duly registered as SSI units with the Directorate of Industries.

BENEFITS

100% financing at very liberal terms with easy repayment schedule.

Simple formalities and speedy sanction.

Single window system for imported equipment. The Corporation undertakes to complete formalities like procuring import licence, opening of Letter of Credit etc.

Tax rebate on full 5 year lease rental.

BASIC TERMS

Lease period of 5 years extendable by another 3 years.

Repayment as lease rental at the rate of Rs.24 per Rs.100 per month of the cost of machine. There is no separate interest.

Minimum assistance provided is Rs.100,000 and maximum subject to SSI ceiling of Rs.6,000,000 or Rs.7,500,000 in case of an ancillary unit. The value of installed machinery at original cost including value of the machine proposed to be obtained under leasing should not exceed Rs.6,000,000 or Rs.7,500,000 in case of an ancillary unit.

The unit will have to pay the following before the order for equipment can be placed on the supplier :-

Amount equal to three months rental (six months rental for special equipment) and

Approximately 7% cost of the equipment (8% for Imported equipment) to cover the insurance charges of the machinery for the period of lease i.e. 5 years and administrative charges of the Corporation.

The unit/party must carefully read the terms and conditions and also the list of the documents to be furnished alongwith the application as printed on the application form.

The party will have to execute an Agreement Bond before delivery of machine.

Payment of lease rental will start after three months of delivery of machine.

The cost of the application form is Rs.25/-.

The application can be submitted to NSIC Branch Office/Regional Office of the area in which the unit is located.