Government of India / RBI Schemes & Incentives for SME Manufacturing Sector Today the Manufacturing segment is in focus, particularly the SME segment. The Ministries, Banks and the Foreign Trade Policies have announced numerous incentives and schemes for the SME segment which lack popularity, clarity and understanding. SME’s find it extremely complex to check their eligibility and the procedure / documentation. We wish to explain, check the eligibility and execute the documentation / procedure for availing the benefits. SME Network – authorised partner for NSIC Schemes (National Small Industries Corporation) is a professional financial services company, promotes and executes such less popular schemes, benefits and incentives generally applicable to the SME manufacturing segment described in brief below: Credit Linked Capital Subsidy :- A MSME ministry subsidy (TUF) of 15% on the new machinery purchased against Bank Term Loan applicable with retrospective effect from October 2005. The scheme is in force till March 2012. Short Term ECB for Imports:- LIBOR linked lower interest rate funding for import of Capital goods or Raw Materials. The funding period is 730 days (Automatic) + 365 days (Approval) for Capital Goods and 180 days for Raw materials. Duty Credit Scrips for Exports:- Additional incentives by DGFT (in addition to DEPB/DBK) for direct exporters under the new Foreign Trade Policy 09~14. The % of incentives range between 2% ~ 7% under FPS / FMS / MLPS / VKYUG / SHIS schemes. PCFC & Factoring for Exporters:- Exporters can avail Packing Credit in Foreign Currency – Libor Linked to save in interest. This may be both pre and post shipment credit. Collateral free factoring limits can be fixed for discounting of export bills with external factoring companies. CGTSME Loan up to Rs 100 lacs:- Entrepreneurs with no collaterals can avail Term Loan / Working Capital limits up to Rs 100 lacs, under this scheme thru nationalised banks with the repayment risk covered by the Credit Guarantee Trust of Central Government. Equipment Finance:- SIDBI / NSIC and private financing companies offers Term Loans for SME’s for purchase of equipments / machineries under various low interest technology / energy saving schemes. Subsidised fee for SME Credit Rating:- Good Credit Rating helps SME’s to reduce the interest rate with the bank. The NSIC compensates the fee by direct payment to the rating agencies to a large extent.

Government of India / RBI Schemes & Incentives for SME Manufacturing Sector Today the Manufacturing segment is in focus, particularly the SME segment. The Ministries, Banks and the Foreign Trade Policies have announced numerous incentives and schemes for the SME segment which lack popularity, clarity and understanding. SME’s find it extremely complex to check their eligibility and the procedure / documentation. We wish to explain, check the eligibility and execute the documentation / procedure for availing the benefits. SME Network – authorised partner for NSIC Schemes (National Small Industries Corporation) is a professional financial services company, promotes and executes such less popular schemes, benefits and incentives generally applicable to the SME manufacturing segment described in brief below: Credit Linked Capital Subsidy :- A MSME ministry subsidy (TUF) of 15% on the new machinery purchased against Bank Term Loan applicable with retrospective effect from October 2005. The scheme is in force till March 2012. Short Term ECB for Imports:- LIBOR linked lower interest rate funding for import of Capital goods or Raw Materials. The funding period is 730 days (Automatic) + 365 days (Approval) for Capital Goods and 180 days for Raw materials. Duty Credit Scrips for Exports:- Additional incentives by DGFT (in addition to DEPB/DBK) for direct exporters under the new Foreign Trade Policy 09~14. The % of incentives range between 2% ~ 7% under FPS / FMS / MLPS / VKYUG / SHIS schemes. PCFC & Factoring for Exporters:- Exporters can avail Packing Credit in Foreign Currency – Libor Linked to save in interest. This may be both pre and post shipment credit. Collateral free factoring limits can be fixed for discounting of export bills with external factoring companies. CGTSME Loan up to Rs 100 lacs:- Entrepreneurs with no collaterals can avail Term Loan / Working Capital limits up to Rs 100 lacs, under this scheme thru nationalised banks with the repayment risk covered by the Credit Guarantee Trust of Central Government. Equipment Finance:- SIDBI / NSIC and private financing companies offers Term Loans for SME’s for purchase of equipments / machineries under various low interest technology / energy saving schemes. Subsidised fee for SME Credit Rating:- Good Credit Rating helps SME’s to reduce the interest rate with the bank. The NSIC compensates the fee by direct payment to the rating agencies to a large extent.