nsic.co.in Bill Discounting Scheme : National Small Industries Corporation

Organization : National Small Industries Corporation
Service Name : Bill Discounting Scheme

Details : https://www.nsic.co.in/
Website : https://www.nsic.co.in/Schemes/Raw-Material-Against-BG

Bill Discounting Scheme

THE SCHEME :
The Scheme covers purchase / discounting of bills arising out of genuine trade transactions i.e. purchase of supplies made by small scale units to reputed Public Limited Companies / State and Central Govt. Departments / Undertakings.

Related : NSIC Government Stores Purchase Programme/ Single Point Registration Scheme : www.statusin.in/20246.html

SELLERS : Small Scale Units
BUYERS :
i) State and Central Govt. Departments / Undertakings
ii) Public Limited Companies

GRANT OF PURCHASER-WISE LIMITS :
** Bills drawn by small-scale units for the supplies made by them and duly accepted by the Purchaser will be financed against security of Bank Guarantee in favour of NSIC.
** Purchaser unit(s) may approach NSIC for sanction of annual limits by furnishing information as per the prescribed application form.

GRANT OF SELLER-WISE LIMITS :
** Seller unit(s) may provide bank guarantee in favour of NSIC for availing financial assistance under the scheme.
** Bills drawn by them against their supplies made, duly accepted by the purchaser will be financed.
** Annual limits can be fixed for such units by obtaining information as per the prescribed application form.

PERIOD OF USANCE OF BILLS TO BE CONSIDERED FOR DISCOUNTING :
** The maximum usance period of such bills should not exceed 90 days.
** The period of unexpired usance of the bill shall not exceed 90 days while the tenure of the bills shall not exceed 120 days.

SECURITY:
Bank guarantees issued by banks approved by Head Office.
The Bank Guarantee to be obtained should be equivalent to the value of assistance (including discounting charges & service charges for 90 days).
OR
Bill of Exchange duly accepted by large corporate units of good financial standing with a turnover exceeding Rs 200 Crores and net-worth exceeding Rs 50 crores and which are profit making for the last three years.
Personal guarantee of proprietor, partners of firms and Directors of the company shall also be obtained

SERVICE CHARGES :
FOR UNITS PLACED ALL OVER THE COUNTRY OTHER THAN NORTH EASTERN REGION
Minimum service charges will be 0.25% for the first 30 days and thereafter 0.08% per week subject to maximum of 3% of the Principal amount (i.e. amount of invoice to be discounted).
OR
Commitment charge @ 2% p.a. on the limit sanctioned to be collected in advance.

FOR UNITS PLACED IN NORTH EASTERN REGION
Minimum service charges will be 0.13% for first 30 days and thereafter 0.04% per week subject to a maximum of 1.50% of the principal amount (i.e. amount of invoice to be discounted).
OR
Commitment charge @ 1% p.a. on the limit sanctioned to be collected in advance.

PROCESSING FEE :
(i) Processing Fee shall be collected in advance on receipt of application and will be non-refundable. The processing fee shall be 0.2% of the limit applied for.

(ii) At the time of processing of application for enhancement of limit, the rates shall be the same as at (i) above.
(iii) At the time of processing of application for renewal of limit, the rates shall be fifty percent of the rates as at (i) above.

APPLICATION FORM :
The application for the request to sanction limit under the Bill Discounting Scheme is to be submitted by the seller unit duly signed by the authorized signatory i.e. Proprietor / Partner / Director of the Firm / Company in duplicate in the prescribed form