How to Apply for Bank Credit Facilitation Scheme, Type of Loans & Get Bank Credit Facility Details – The MSME sector has an important and big contribution in the economy of our country and various types of schemes are also being run by the central government to encourage and benefit this unorganized sector. In this direction, a new scheme called Bank Credit Facilitation Scheme has been launched by National Small Industries Corporation (NSIC), under which MSMEs will be provided necessary credit assistance from banks. Today, through this article, we will share with you all the necessary information related to the Bank Credit Facilitation Scheme, such as:- Purpose, Benefits, Features, Eligibility Criteria, Application Process etc., so stay with us till the end. [Also Read – CBSE Training Portal Free Registration: Teachers Login, Certificate Download]
Bank Credit Facilitation Scheme
An ISO 9001-2015 certified enterprise of the Government of India under the Ministry of Micro, Small and Medium Enterprises (MSME), NSIC has entered into an MoU with various private sector and nationalized banks to assist the MSME units of the country. This MoU is known as the Bank Credit Facilitation Scheme. Through syndication with banks, NSIC facilitates credit support to MSMEs (fund based or non-fund based limit) from these banks. Let us tell you that under the Micro, Small and Medium Enterprises (MSME) sector, there are more than 6.33 crore business units across the country, of which 90% are micro enterprises. [Read More]
Overview of Bank Credit Facilitation Scheme
| Scheme Name | Bank Credit Facilitation Scheme |
| Launched By | By National Small Industries Corporation (NSIC) |
| Year | 2024 |
| Beneficiaries | All MSME Units in the Country |
| Application Procedure | Online Mode |
| Objective | To Provide Necessary Credit Support from Banks to MSMEs |
| Benefits | Credit Assistance |
| Category | Central Government Schemes |
| Official Website | https://www.nsic.co.in/Schemes/Credit-Facilitation-Through-Bank |
Objective of Bank Credit Facilitation Scheme
The main objective of the Bank Credit Facilitation Scheme launched by NSIC is to encourage micro, small and medium industries of the country and help them to get necessary credit assistance from banks. To meet the credit requirements of MSME units, NSIC has entered into an MoU with various nationalized and private sector banks. Through this MoU, NSIC will assist MSME units in availing the facility of both fund based and non-fund based credit support from these banks. Along with this, NSIC will also provide assistance to MSME units related to submission of loan applications and follow up with banks along with arranging credit support, which will be provided free of cost. [Also Read – National Food Security Mission (NFSM) Objective, Features & Implementation]
Benefits and Features of Bank Credit Facilitation Scheme
- The Bank Credit Facilitation Scheme has been launched by National Small Industries Corporation (NSIC).
- Through this scheme, the Micro, Small and Medium Enterprises (MSME) units of the country will be benefited.
- Under this scheme, interested MSME units will be assisted by NSIC in getting necessary credit support from banks.
- This credit assistance to the beneficiary MSME units will be provided through an integrated mix of various public and private sector banks.
- Under this scheme, the facility has also been provided to MSMEs to apply for a new bank or to switch an account to any other bank.
- NSIC officials will also assist the MSMEs in completing the documentation process required by the bank.
- Simultaneously, the NSIC officer also conducts follow-up action with the bank.
- All these facilities are provided by NSIC to MSMEs at no cost.
- Under the Bank Credit Facilitation Scheme, MSMEs have also been provided with the facility to get finance from the bank on the basis of its pioneering policy.
- Simultaneously, MSMEs are allowed to avail more liberal rates of interest under the performance and credit rating scheme of the Ministry after offering favorable ratings from the bank under this scheme.
Eligibility Criteria for Bank Credit Facilitation Scheme
All such business enterprises in India whose enterprise ID is registered and recognized by the government, whether the business is micro, small or medium, is eligible to apply under the Bank Credit Facilitation Scheme.
Classification of Micro, Small and Medium Enterprises
| Micro Enterprise | Any manufacturing enterprise in which the original value of investment in plant and machinery is up to Rs. 25 lakhsAny service enterprises in which the original value of investment in equipment is up to Rs. 10 lakhs |
| Small Enterprise | Any manufacturing enterprise in which the original value of investment in plant & machinery is above Rs. 25 lakhs and up to Rs. 500 lakhsAny service enterprise in which the original value of investment in equipment is above Rs.10 lakhs and up to Rs. 200 lakhs |
| Medium Enterprise | Any manufacturing enterprise in which the original value of investment in plant & machinery is above Rs. 500 lakhs and up to Rs. 1000 lakhAny service enterprise in which the original value of investment in equipment is above Rs. 200 lakhs and up to Rs. 500 lakhs |
Required Documents
- Proof of Identity
- Proof of Residence
- Proof of Business Address
- Asset and Liability Statement of promoters, guarantors, directors etc. with latest income tax returns.
- Rent Agreement / Lease Deed if business premises are rented/leased.
- Copy of SSI registration certificate/Entrepreneurs Memorandum
- Profile of the Unit (Name and address of promoters, experience, nature of activity, address of all offices/plants, share holding pattern etc.)
- Last three year’s Balance Sheet with IT/ST returns
- Projected Balance Sheet for next two years
- Application in the prescribed format
- CMA data in the prescribed format if the limit required is Rs. 100 lakhs and above.
- Position of accounts with existing bankers
- Project Report for term loan requirements
- Estimates/Quotations/Sanctioned building plan etc.
- Partnership Deed/Trust Deed/Rules & Bye laws/Memorandum and Articles of Association /Certificate of Incorporation etc.
- Clearance from Pollution Control Board/Sanction from Electricity Board and other statutory authorities.
- Month-wise production and sales data for the current financial year, value of stock in process, finished goods, debtors, creditors etc.
Procedure to Apply under Bank Credit Facilitation Scheme
Such interested MSME units of India who want to apply for availing the benefits under the Bank Credit Facilitation Scheme will have to follow the following guidelines:-
- First of all you have to visit the official website of National Small Industries Corporation (NSIC). After this the homepage of the website will be displayed on your screen.
- You have to download the application form of the Bank Credit Facilitation Scheme from the homepage of the website. Now you have to take the printout of the application form.
- After this, you will have to enter the details of all the necessary information asked in the application form. Now you have to attach all the required documents along with the application form.
- Now you have to submit the filled application form along with attached documents to a representative officer, after which you will be able to apply under the Bank Credit Facilitation Scheme.