NSIC – Full Form, Registration, Certificate, and Schemes

National Small Industries Corporation (NSIC) is an ISO 9001:2015 certified Government of India Enterprise under Ministry of Micro, Small and Medium Enterprises (MSME). NSIC has been working to promote, aid and foster the growth of micro, small and medium enterprises in the country. Full form of NSIC is NSIC (National Small Industries Corporation), established in the year 1955, aims to support, promote, develop, and foster the ministry of MSME – Micro, Small, and Medium Enterprises of India. NISC is an ISO 9001-2015 certifies organization under the Government of India Enterprise. NSIC has training plus incubation centers, a network of offices, and technical centers in the whole country supervised and governed by professionals.

Offering unified support and manpower services in marketing, finance, technology, and support, NSIC also facilitates customized schemes, thus enhancing the competitiveness, diligence, and growth of the MSMEs and eventually resulting in the overall development of the country’s economy.

Types of Loans promoted by NICs

• MSME Loan  : MSME loans are designed specifically for micro, small and medium enterprises, these loans usually require little to no collateral, and have loan terms favorable for small businesses, which helps them grow and boost the economy!
• Working capital loan : Working capital loan is a type of short term funding usually given to businesses to help them function efficiently. For businesses that are facing working capital shortage, this loan comes as a boon, it helps them manage their working capital efficiency in times of unanticipated business occasions like high number of orders. These loans usually have a short to medium tenure and favorable terms
• Term loan : Terms loans are debt funding with longer repayment terms. These loans are usually taken for major capital intensive purposes like expansion, research & development, introduction of a new product, expansion into a new market, etc. These loans are fixed terms and come with a fixed repayment structure and are hardly flexible as compared to some small working capital loans. 

A range of other loans provided under Working Capital Loan like:

• Overdraft Facility using Current Account : based on the average balances maintained in a current account, banks may offer overdraft facilities to the businesses. These overdraft facilities may come in handy in case of a huge business cash outflow. Overdraft facilities are a kind of cushion amount carved out for you which can be used or withdrawn over and above the balance available in your current account. Overdraft has interest component to it. Depending on the amount of money you’ve used from the overdraft facility, interest is charged on it.
• Cash Credit loan :  Cash credit is a type of short term lending that is offered by financial institutions to businesses. The aim of these loans is to help businesses with their working capital requirement. These loans are of short tenure of generally up to 12 months with favorable lending terms.
• Bills Discounting : Bills discounting is a service offered by financial institutions to the businesses with bills receivables. How it works is that the business can exchange the bills receivables for cash at a discount. Let’s understand this with an example, let’s suppose ABC Ltd. has pending receivable invoices amounting to INR 500,000 ; ABC Ltd can give these unrealized invoices to a financial institution on a discount for immediate cash. This is how bill discounting works. This is a great finance product for businesses where there are longer credit cycles in the industry and they are in immediate need of cash.
• Unsecured Short-Term Business Loan : As the name suggests, these are a form of short term debt funding given to the businesses in need of quick cash to cater to their working capital requirement, or any urgent business need. These loans are not backed by collateral and have a small repayment tenure. Unsecured short term business loans comes as a boon to those businesses facing an unanticipated business expense.
• CGTMSE – ‘Credit Guarantee Fund Scheme for Micro and Small Enterprises’ scheme loan
• Guarantees
• Letter of Credit : Letter of credit is an instrument by which the financial institutions (usually banks) guarantee payment to the seller on behalf of the buyer. They do this for a small fee (usually a percentage of the amount of LOC) in case of non repayment by the buyer, the bank is liable to pay the seller. These instruments are great for cross-border trades where the seller or the service provider is risk averse and is willing to pay a percentage to guarantee payment either by the buyer or by the bank.

  What is NSIC

  NSIC stands for National small industries corporation limited. It is a Government of India enterprise, focused towards promoting and fostering a sustainable growth of micro, small and medium enterprises in the country. NSIC’s mission is to promote and support Micro, Small & Medium Enterprises (MSMEs) Sector” by integrated support services encompassing Marketing, Technology, Finance and other services.

  NSIC’s Vision is “To be a premier Organization fostering the growth of Micro, Small and Medium Enterprises (MSMEs) Sector  

Objectives of NSIC:

The main goals of NSIC are:

1. Eventually works on profitability by enhancing efficiency and productivity within the enterprise
2. To enhance business growth by outreaching corporates and thus creating business opportunities
3. Helps in working on a safe ad clean environment to work conductively
4. Helps in training and self-employment
5. Upgrades skills of existing and new manpower and employees

Functions of NSIC:

You may be wondering what is the purpose of NSIC? The main areas of functioning of NSIC are:

• Helps the MSMEs to elevate their competitiveness by running and providing various development schemes
• Provides the MSMEs various integrated support series on marketing, finance and technology
• Skill Development and Training programs initiated and run by NSIC in keeping the MSMEs updated and upgraded.
• Financial support : NSIC runs schemes that supports MSMEs to source raw material procurement from within and outside the country
• Entrepreneurship training : NSIC provides entrepreneurship training to budding entrepreneurs and unemployed population to start a new business 
• Marketing assistance : NSIC gives assistance to entrepreneurs with marketing for their MSMEs
• Technological support : NSIC provide technical services through NSIC Technical Services Centres and other centers evolved all across the country
• Single Point Registration: NSIC registers MSMEs under the Single Point Registration Scheme (SPRS) that enables them to tender in government procurement.
• International cooperation: NSIC participates in international cooperation activities.

Schemes under NSIC:

To foster and upgrade the growth of MSMEs in the country, NSIC has various schemes:

• Bank Credit Facilitation – NSIC collaborates with various top banks in India, both public and private, to facilitate the MSMEs with credit support to meet their capital and financial needs and to help with the documentation process.
• Raw Material Assistance Scheme – This is a beneficial scheme for MSMEs in the manufacturing unit and has the benefit of UAM – Udyog Aadhar Memorandum. They have the leverage to take a customized high-value loan up to Rs. 15 crores for the procurement of raw material in the form of credit or advance payment.
• MSME Global Mart – What is NSIC B2B Portal?– Under this scheme, NSIC offers infomediary services providing vital statistical data and information on business and technology exhibiting the competence of the MSMEs. It can help in providing information on the following topics:
  • Tenders on a national level on email
  • Trust seal of NSIC
  • The Web store of MSMEs
  • MSME interactive database
  • National Tender
  • Centralized emailing system
  • Popular products
  • LIVE chat and call center support
  • Discussion forums
  • Payment Gateway
  • Membership subscription
  • Other Value-add services
• SinglePoint Registration Scheme – Launched in 1976, MSMEs make government purchases via a one-point registration process.
• Consortia and Tender Marketing – A consortium is created to promote small scale products and goods of micro and small-scale entrepreneurs.
• Marketing Intelligence Scheme – This helps in understanding the current market scenario and understanding the demand, needs, behaviors, preferences, attitudes, and tastes of the potential customers.
• Technology Incubation – Under the PPP mode – Public-Private-Partnership, NSICs have set up training and incubation centers – NSIC-TIC by initiating franchisee agreements and arrangements with private entities at various locations in the country.
• Government Schemes under NSIC – especially designed for the SC/ST group to help them start-up or develop their businesses.
• ASPIRE Scheme– This addresses employment, the standard of living, and the livelihood of the public of India, in a scenario where the country’s population is growing by leaps and bounds.
• International Cooperation and Consultancy Services – This works on sustainable business relations and aims to strengthen international business ties by offering consultancy to other developing countries.

Benefits of NSIC registration:

NSIC certificate benefits list is long, few of the benefits are listed below: 

• Through private and public sector banks, NSICs provide credit and loan facilities to MSMEs : NSIC helps MSME secure credit from private and public lending institutions through various scheme with a goal that the capital inadequacy shouldn’t hamper growth of a small business
• Priority Sector is promoted : NSIC actively promotes priority sector through various schemes and benefits, which ultimately helps the MSMEs operating in that sector
• It gives an option to switch from one financial institution like banks to the other.
• Supporting the documentation process for MSMEs
• Guidance to get the best interest rates for MSMEs
• Assist and direct MSMEs to avail credit
• Holistic support to MSMEs

Eligibility:

A substantial segment of the Indian population depends on NSIC and this sector for financial independence and to give impetus toward the growth of agriculture, housing, export, education, and a host of other micro and small businesses. No Collateral is expected if the loan amount is Rs. 10 lakhs. If the MSME condition is favorable, then it can be granted up to Rs. 25 lakhs without collateral.

The firms need to follow the eligibility criteria as under:

• MSMEs with a turnover from Rs. 5 crore – Rs. 250 crores
• Should be operational for the last 3 years
• Should be thorough in business with complete details, could be work-in-progress, services and finished goods, comprehensive details about the business and viability.
• Past Loan repayment records if any
• Favorable CIBIL score

Documents required:

• Identity Proof, Address Proof (Personal and Business),
• Latest Income Tax Returns
• Rent agreement or lease deed
• Entrepreneurs memorandum or Partnership Deed
• SSI registration certificate
• A complete profile of the business
• Forecasted balance sheet for the next 2 years
• The Balance sheet of the last 3 years
• Properly filled application form
• CMA Data (if the amount is above Rs. 100 lakhs)
• Certificate from Pollution Control Board, electricity board and other statutory authorities
• Value of stock, monthly production, and sales data, list of debtors and creditors, and other business-related information.

NSIC Online Registration Process for the Provisional NSIC Certificate

The following steps need to be followed for the NSIC online registration process :

Step 1 – The applicant must fill an application and submit it after paying the relevant fees along with the required documents.

Step 2 – The documents will be further checked and verified by the Nodal officer. If there is any discrepancy regarding the documents, the same will be intimated to the applicant

Step 3 – After verification and approval of documents by the Nodal officer, the same will be forwarded to the inspecting agencies

Step 4 – After approval from the inspecting agency, a report will be generated, and the NSIC certificate of registration will be issued.

NSIC Registration Fees and charges:

Based on the annual turnover of the business and the latest financial statements, the registration fees are charged as follows:

 If the enterprise turnover is Less than Rs 1 Crore:

• Registration fees for Micro enterprises = Rs. 3,000
• Registration fees for small enterprises = Rs. 5,000.

 If the enterprise turnover is more than Rs. 1 Crore:

• Registration fees for Micro enterprises = Rs. 3,000 plus additional Rs. 1,500 for every extra crore
• Registration fees for Small enterprises = Rs. 5,000 plus additional Rs. 2,000 for every extracrore.

Inspection Charges:

Inspection charges for Micro MSME= Rs. 2000

Inspection charges for Small MSME = Rs. 3000

Benefits of Single Point Registration

• NSIC registers MSMEs under SPRS – Single Point Registration Scheme Government Purchases and there are many advantages of the process like:
• Tender sets are issued at no charge and free of cost;
• The MSMEs are exempted from the payment of EMD – Earnest Money Deposit
• Annual goal of 25% of the total annual purchases by MSEs.
• 358 products are for purchase from SSI Sector

Interest Rates under NSIC Scheme

The interest rate that is offered to MSMEs in a variation starting from 1.25% per month with a signed statutory memorandum of understanding (MOU) with all the leading financial institutions to provide credit support to MSMEs to operate, manage and run their respective businesses.

Summary

NSIC full form in entrepreneurship is National Small Industries Corporation, NSIC was set up in 1955 as a government enterprise certified under ISO 9001-2015, supporting Micro, Small, and Medium Enterprises or MSMEs in India. NSIC is significant in advancing the growth and development of MSMEs through a series of programs and services in terms of marketing, finance, and technology support.

NSIC has various types of loans for MSMEs, including MSME loans, working capital loans, overdraft facilities and cash credit loans, bills discounting, and unsecured short-term business loans and term loans that can be availed to help the operational and expansion requirements of small businesses. Among other financial products.

The organization also controls various schemes like Bank Credit Facilitation scheme, Raw Material Assistance scheme and MSME Global Mart that provide essential resources and market to the small businesses. It also informs about the loan eligibility criteria that consist of a good turnover and operational history and the list of documents required for registration.

The objectives of NSIC include training competitiveness among MSMEs through credit counseling, hygiene and cleanliness at the worksite, skill development, exemptions, and relaxed eligibility conditions provided under the Single Point Registration Scheme for government purchase.

NSIC plays an important role in the development of the MSME sector, in that way stimulating the economy and making a majority of the Indian population financially self-reliant.

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