About this programme
NSIC's Bill Discounting Scheme discounts bills of exchange arising from genuine trade supplies made by manufacturing and service MSMEs to reputed public and private limited companies and government departments/undertakings, against bank guarantees. The scheme gives MSMEs faster access to working capital otherwise locked up in receivables. It is run by NSIC (National Small Industries Corporation).
A credit guarantee helps you borrow by covering part of the lender’s risk, so eligible businesses can access loans they might not get otherwise. The amount and form of support that actually apply to you depend on the programme’s rules and how your application is assessed — they are not fixed for every applicant.
It is aimed at businesses in manufacturing and services (msme). Like most government programmes, it has its own eligibility conditions, documentation and application window, and these terms are revised from time to time. Because of that, it is worth confirming the current eligibility, amount and deadline on the official programme page before you invest time in applying.
How it works
MSMEs draw bills of exchange for supplies made and accepted by purchasers. NSIC discounts these bills against bank guarantees provided by either buyer or seller. Annual limits are established through application forms. Maximum usance period does not exceed 180 days.
Who can apply
Manufacturing and service MSMEs supplying to government departments, PSUs, and companies. Traders are explicitly excluded.
How to apply
- Submit prescribed application form with supplier details
- Provide supporting documents as specified
- Arrange bank guarantee from approved bank or personal guarantee from proprietors/directors
- NSIC assesses and sanctions annual limits
- Bills are discounted as per approved limits
Documents you’ll typically need
- Prescribed application form
- Specified supporting documents
The exact checklist depends on the programme and your specifics.
Frequently asked
Who is eligible for the Bill Discounting Scheme?
Manufacturing and service MSMEs supplying to government departments, PSUs, and companies. Traders are excluded.
What security is required for bill discounting?
Bank guarantees from approved banks or personal guarantees from proprietors/directors are required.
What is the maximum duration for which bills can be discounted?
Bills with a usance period not exceeding 180 days can be discounted.
Reviewed July 2026. Government programmes change — confirm current eligibility, amounts and deadlines on the official programme page before you apply. CapEasy is a private consultancy and is not affiliated with any government authority.