Overview : Know About NSIC Online Finance Facilitation Centres (FFCs)-• Finance Facilitation Centre (FFCs) are dedicated online platform (www.nsicffconline.in) under which credit to MSMEs will be facilitated through web linkages between NSIC portal and Bank’s portal.
What are the Salient features of
FFC?
- To operate as a nodal point for aggregating various
financing options of MSMEs.
- Speedy disposal of credit proposals thus saving time
and cost of MSMEs.
- To disseminate information about MSME schemes offered
by the Banks/FIs.
- To facilitate larger number of MSMEs who are desirous
of availing credit.
- To provide handholding support to MSMEs
How MSME loans can be availed
through NSIC-FFCs?
- The MSME Unit can either directly log in at
www.nsicffconline.in and fill in the required details in the basic online
input form or can also contact offline to its nearest NSIC Finance
Facilitation Center with the loan proposal .The official at the Finance
Facilitation Center will provide hand holding support by assisting the unit
in documentation for online submission of the loan proposal to the bank.
What are the target clients who can
avail loan under NSIC-FFC?
- Existing MSME units as well as units applying for fresh
loans can apply through this portal
Is there any cost for registering on
to the portal?
- No fee is charged for registering on this portal
How does this portal help MSME?
- The portal will help the MSME(s) to get access to
finance from banks based upon their lending policy and with speedier
disposal of proposals through technology intervention.
How do I get handholding support?
- You can navigate through the portal either by filling
in basic input form online or by submitting it offline to nearest the
NSIC-FFC in your area. After keying all relevant details on the portal,
our nodal officer shall validate your loan application form before
submitting it to your preferred banks.
Which are the lending institutions
eligible for extending loans under FFCs?
- The Banks/FI(s) which have entered into Memorandum of
Understanding (MOU) with NSIC are the lending institutions under FFCs.
What is a Micro Enterprise?
- Any manufacturing enterprise in which the original
value of investment in plant and machinery is upto Rs. 25 lakh and any
service enterprises in which the original value of investment in equipment
is upto Rs. 10 lakh is called a Micro Enterprise.
What is a Small Enterprise?
- Any manufacturing enterprise in which the original
value of investment in plant & machinery is above Rs. 25 lakh and upto
Rs. 500 lakh and any service enterprise in which the original value of
investment in equipments is above Rs. 10 lakh and upto Rs. 200 lakh is
called a Small Enterprise.
What is a Medium Enterprise?
- Any manufacturing enterprise in which the original
value of investment in plant & machinery is above Rs. 500 lakh and
upto Rs. 1000 lakh and any service enterprise in which the original value
of investment in equipments is above Rs. 200 lakh and upto Rs. 500 lakh is
called a Small Enterprise
What are the types of loan
facilities available in Bank for Micro, Small and Medium Enterprises?
- Term loans for acquisition of fixed assets (viz,
land/building, plant/machinery, other fixed assets) towards setting up of
new units and for expansion, modernization and diversification in case of
existing units.
- Working Capital limits to meet the working capital
needs of the MSME units in the form of open 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.
Whether KYC compliance is mandatory
for availing loans under MSME?
- Yes, the loan applicants should open an operative
account (Savings / Current Bank Account) which is KYC compliant with
properintroduction, address proof, ID proof and photo etc; as stipulated
by the bank.
What are all the documents to be
submitted for availing loans under MSME?
- The documents to be submitted vary based on the purpose
of the loan. The general documents as required are:-
- 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
rented/leased.
- Copy of SSI registration certificate/Enterpreneur’s
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 limit required is
Rs. 100 lakh 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.
What are the margin norms for loans
under MSME?
What is the interest rate of MSME
loans?
What are the processing charges
payable for MSME loans?
What are the security norms for MSME
loans?
What is the method of assessing
working capital requirement for MSME unit?
- For units requiring working capital limits upto Rs. 5
crore, requirement is assessed as 25% of the projected turnover for the
next year and the working capital limit shall be 20% of the projected
turnover. The balance shall be brought by promoters as their contribution
by way of equity / loans.
For limits above Rs. 5 crore, the working capital requirement is assessed
under Maximum Permissible Bank Finance Method.
What is the repayment period
stipulated for term loans?
- The repayment period varies depending upon the income
generation from the unit and generally varies from 5-7 years. However, in
exceptional cases it can go to 11 years.
How working capital finance is
typically structured at bank?
- At bank, working capital loans are tailored to suit the
precise requirements of the client, in any of the various instruments
available or structured as a combination of cash credit, demand loan, bill
financing and non-funded facilities.
The banks accomplished credit crew can gauge the credit needs of each
client and frame the exact solutions.
How does bank approve working
capital loans?
- Bank dedicated credit team has a deep understanding of
the intricacies of various industries and is richly experienced in
reckoning the business potential of companies.
These informed professionals can assess your specific credit requirements
and tailor customized financial solutions to suit your risk profile and
the working capital cycle of your company.
What is the repayment schedule like?
- Working capital finance limits are normally valid for
one year and repayable on demand. Specific, self-liquidating loans are
linked to the natural tenor of the transaction (bill finance, export
credit etc.).