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Tata Capital > Blog > What Is a Bank Credit Facilitation Scheme for SMEs?

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What Is a Bank Credit Facilitation Scheme for SMEs?

What Is a Bank Credit Facilitation Scheme for SMEs?

MSMEs contribute to nearly 45% of the country’s manufacturing output, yet only 16% of the businesses receive credit from recognised lenders. To support these enterprises, National Small Industries Corporation (NSIC) tied up with several financial institutions under the Bank Credit Facilitation Scheme. Find out more about it in this article.

MSME Credit Facilitation scheme: Introduction

The MSME Credit Facilitation scheme began in 2014 to provide micro, small and medium enterprises with financial support through credit and assistance with documentation, filing, and submitting proposals to financial institutions. Moreover, you can contact an NSIC representative under this scheme to understand the loan application process. They are also responsible for the documentation and provide service at no additional cost.

Credit sanctions under the scheme receive a competitive interest rate and a higher priority. Thus, you can avail of a prioritised business loan with a lower interest rate and assistance in the application and documentation process.

Additional Read: All You Need to Know About Credit Guarantee Fund Scheme for Micro and Small Enterprises

Features of the MSME Credit Facilitation scheme

There are many benefits for MSMEs from the Credit Facilitation scheme, as listed below:

Easily available credit

Whether you want credit assistance to purchase new or upgraded equipment or simply need working capital to meet your business’s demands, you get prioritised loan processing under this scheme. The scheme ensures readily available funding to provide hand holding credit support at attractive business loan interest rates for small and mid-sized businesses.

Assistance from NSIC

The application process for business financing can be confusing if you are a first-timer. Hence, under this scheme, an official from NSIC will assist you with the documentation. They will clarify the scheme’s details, terms and conditions of the loan and facilitate your loan’s quick processing. You will receive all the assistance without any additional expense.

Non-fund based limits

Under the MSME Credit Facilitation scheme, you can also receive non-fund based limits such as guarantees and letters of credit. These are pretty useful while applying for bids and tenders.

In conclusion

The MSME credit facilitation scheme is beneficial for business owners of the MSME category. This NSIC facilitated scheme ensures that MSMEs can avail of term loans, non-fund based limits, or working capital limits. Besides, assistance in documentation and application procedure enables faster processing.

Additional Read:  New Business Loan Schemes for SMEs

Does your growing business need urgent funding? We can assist you

A business requires liquid assets to flourish. To usher in funds for your enterprise’s short and long-term financial requirements, we at Tata Capital provide business financing with business loan interest rates starting at 19%. We offer multipurpose loans with structured EMI plans.

Whether you need financing to upgrade your machinery, support your organisation’s financial health, or fund your working capital, Tata Capital provides collateral-free financial assistance at easy eligibility for MSMEs.

Need to understand the structure of your loan term or looking to calculate your EMIs in advance? Check out our business loan EMI calculator and choose a tenure that suits your business’ cash flow.

Get in touch with Tata Capital and grow your business!

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