Raw Material Assistance Scheme

Raw Material Assistance Scheme

The Raw Material Assistance Scheme aims at helping MSMEs by way of credit based financing of the purchase of Raw Material (both indigenous & imported) so that MSMEs can focus on manufacturing quality products.


  • Credit support for procurement of raw materials for up to 180 days.
  • Facilitating procurement of Raw Material. 
  • MSMEs can utilise economies of scale and avail cash discounts or bulk purchase discounts.
  • National Small Industries Corporation takes care of all the procedures, documentation & issue of Letter of Credit, in case of imports.
  • Materials facilitated under Bulk supplies arrangements are provided at the bulk supplier’s rate by eliminating the middlemen and thus goods are procured at a lower price.


Any manufacturing MSME having Udyog Aadhar registration certificate can avail the scheme.

How to apply?

  1. Visit www.nsic.co.in to download the application form or you can access physical copies from the NSIC branch office.
    Branch office link- https://www.nsic.co.in/Corporate/SearchBranch
    Form Link: https://www.nsic.co.in/Schemes/Raw-Material-Against-BG 
  2. Fill the form and submit it to the nearest NSIC branch office.


  • Duly filled application form is to be submitted along with the application.
  • Preliminary appraisal and Unit inspection is carried out by NSIC.
  • Sanction of Limit to the Unit.
  • Signing of the agreement between NSIC and the Unit.
  • Disbursement of assistance to the unit, provided the applicant furnishes a security in the form of a bank guarantee from approved banks.

Rate of Interest –

Particulars Effective Rate of Interest(% per Annum)
Normal Interest (Compounded on monthly rest) MICRO SMALL & MEDIUM
Upto 180 Days
(i) Units (SMEs) having valid SME 1 rating* 8.25 8.75
(ii) Units (SMEs) having valid SME 2 rating* 8.75 9.25
(iii) Other units 9.25 9.75


*Note : The concessional rate of interest for the good rated MSMEs, as mentioned at Sl. No. (i) and (ii) in the table above shall be applicable only to those cases, where the units make timely repayments of the Corporation’s dues. The units which have not re-paid its dues within the stipulated 180 days, shall not be eligible for the concessional rate of interest. Such units shall be charged rate of interest mentioned at Sl. No. (iii) above.

How is the credit support provided?

  • NSIC releases the payment to the supplier as requested by the MSME. 
  • The unit has to submit a proforma invoice/ original invoice/ material receipt note with a specific request to release the payment. 
  • The maximum assistance is provided up to 95% of the Bank Guarantee value.