Who Can Benefit :
Small Scale Industries / Enterprises
Reputed Public Limited Companies and PSUs
Eligibility :
Purchaser of SSI Products
Should be in commercial production for a minimum period of 5 years.
Should be a corporate entity with good record of performance and sound financial
position.
Should not be in default with NSIC/Bank/Financial Institution.
Benefits
Eased liquidity position helps in maintaining continuity in production.
SSI may not be required to submit security if supplying to Govt. bodies. (only if
accompanied with OK test reports or material acceptance letters.)
Finance available up to 90 days. Tenure of Usance bills should not exceed 120 days.
Procedure
Submission of Application in prescribed form
Preliminary Appraisal and unit inspection by NSIC
Sanction of purchaser wise limit
Signing of agreement with SSI & buyer units
Availing of facility by SSI
1. Each purchaser accepted bills are lodged with NSIC
2. NSIC releases payment to SSI on behalf of buyer unit
3. NSIC collects the dues form the buyer unit on completion of the period of
assistance
To be eligible under the various bills schemes, one of the parties to the transactions to the
scheme has to be an industrial unit in the small-scale sector within the meaning of Section
2(h) of the SIDBI Act, 1989.
Different types of Bill Financing Scheme:
1. Receivable Financing Scheme:
Purpose: To enable SSI / SME / Eligible Service sector units (including construction / small
road transport operators) selling components, parts, sub-assemblies, services, etc. to Medium
& Large scale units realise their sale proceeds quickly.
Eligible Borrowers: Limits are sanctioned by SIDBI to well establish industrial units using
components / parts / sub-assemblies / accessories / services manufactured / provided by SSI /
SME / Eligible Service sector units. Either seller or Purchaser needs to qualify as SSI / SME /
Service Sector unit
Norms: Unexpired Usance - Not more than 90 days
Others: Facility without bills of exchange / LC backed receivables can also be considered on
the basis of merit.
2. Direct Discounting Scheme - Equipment (DDS-E)
Purpose: To enable manufacturers - sellers in SSI sector / service sector including
construction / selling agents to offer deferred payment terms for credit sales and realise sale
proceeds by discounting bills of exchange / promissory notes arise out of such sales.
Eligible Borrowers: Limits are sanctioned by SIDBI to well established concerns / corporate
bodies buying machinery / capital equipment from SSI units. Limits are also sanctioned to
well established SSI manufacturers – sellers
Norms: Usance of Bills - Normally 3-5 years
Minimum transaction value - Rs.1, 00,000
3. Bills Rediscounting Scheme - Equipment (BRS-E)
Purpose: For sale / acquisition of machinery on deferred payment terms for setting up of new
SSI units as also for expansion, diversification, modernisation, replacement, addition of
balancing equipment etc.
Eligible Borrowers: Manufacturer-sellers / purchaser-users of indigenous machinery / capital
equipment one of whom should be in the small scale sector
Norms: Scheme operated through scheduled commercial banks.
Usance of Bills -Normally 2-5 year
Bills Rediscounting Scheme - Equipment (Inland supply bills)
Purpose: To encourage bills culture as a method of working capital financing so as to ensure
timely payment. Trade bills arising out of supply of goods by SSI units and discounted with
commercial banks either by the drawer (seller) or the drawer (buyer) are rediscounted by the
banks with SIDBI.
Eligible Borrowers: SSI suppliers.
Norms: Scheme operated through scheduled commercial banks Unexpired Usance - Not more than 90 days.
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