Bank credit facilitation scheme

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The Bank Credit Facilitation Scheme helps MSMEs gain easy access to bank credit by providing handholding, documentation support, and facilitating bank linkages. It aims to connect MSMEs with various nationalised and private banks to meet their financial needs for business setup, expansion, or working capital without additional cost or paperwork hassles.

Highlights

  • Facilitates MSME credit through partnerships with multiple public and private banks.
  • Assists MSMEs with documentation and loan application processes.
  • Allows MSMEs to apply for new bank loans or switch banks for better terms.
  • Access to various loan types: term loans, working capital, and non-fund-based limits.
  • Free of cost assistance for MSMEs throughout the loan process.

What is a Bank Credit Facilitation Scheme?

  • Under the scheme National Small Industries Corporation (NSIC) has entered into a memorandum of understanding with banks to meet credit requirements of MSME
  • Under the scheme MSME can directly approach banks that are in agreement with  NSIC for loan requirement 
  • Scheme provides MSME with term loans for business expansion & working capital needs
  • Scheme provides MSME with an integrated banking networking for smooth funding

Objectives

  • Simplify MSMEs’ access to formal credit from banks.
  • Reduce documentation and procedural hurdles for MSMEs.
  • Provide handholding and follow-up support through NSIC officials.
  • Ensure MSMEs get competitive interest rates based on credit ratings.
  • Expand financial inclusion and support MSME growth nationwide.

Benefits of Bank Credit Facilitation

  • Easy Access
    Streamlined loan process through National Small Industries Corporation (NSIC) facilitation with multiple banks.
  • Documentation Support
    National Small Industries Corporation (NSIC) assists in completing loan papers, saving time and effort.
  • Flexibility
    You get the option to apply for new loans or switch banks if needed.
  • Better Loan Terms
    Your business benefits from credit ratings for favourable interest rates.
  • Wide Coverage
    You get loans for fixed assets, working capital, and non-fund facilities.

Financial Assistance Under the Scheme

Type of Loan offered

Components 

Term Loan 

For purchase of land/building, plant/machinery or other fixed assets to expand, modernise and diversify existing units 

Working capital

For meeting working requirement in form of open cash credit, overdraft & bill discounting 

Non Fund 

For other non fund based limits such as guarantees, letter of credit, foreign bank guarantees, foreign letter of credit etc.

Repayment:

It generally ranges from 5-7 years. 11 years can be offered in special cases.

Eligibility for Bank Credit Facilitation

You are eligible if:

  • You are a registered Micro, Small, or Medium Enterprise (MSME) in India.
  • You require finance for business creation, expansion, or working capital.

You are not eligible if:

  • You are not a recognised MSME.
  • Your business is involved in illegal, speculative, or excluded activities per bank policy.

Documents Required for Credit Facilitation Through Bank

  • MSME registration certificate
  • Identity proof and address proof of proprietors/partners/directors
  • Business address proof
  • Financial statements of the last 3 years and IT returns
  • Bank statements and credit history

Application Process for Credit Facilitation

You can apply:

  • Offline by visiting the National Small Industries Corporation Limited (NSIC) office.

Examples of Where Bank Credit Facilitation Can Be Used

  • A mask-making unit in Agra secures a ₹20 lakh loan through NSIC after its bank rejects due to low credit history
  • A Coimbatore solar panel startup gets a ₹50 lakh clean loan within 30 days via NSIC credit facilitation
  • A Punjab food processing MSME obtains working capital through NSIC to ensure year-round raw material supply
Bank Credit Facilitation Scheme | Access MSME Finance Easily