About this programme
The Raw Material Assistance (RMA) Scheme helps MSMEs finance the purchase of both indigenous and imported raw materials through credit support up to 180 days against bank guarantee. It enables small manufacturers to access bulk-purchase economics and cash discounts while managing working capital requirements without tying up funds in input procurement. 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 msmes. 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
MSME applies with Udyam certificate and bank guarantee arrangement. NSIC evaluates application and approves credit limit for raw material purchases. Beneficiary procures raw materials; NSIC pays suppliers directly or reimburses against invoices. Credit period extends up to 180 days with interest rates determined by unit category and rating.
Who can apply
MSME with valid Udyam registration certificate engaged in manufacturing. Manufacturing units of micro, small, and medium scale eligible. Must maintain satisfactory credit history and provide approved bank guarantee as security.
How to apply
- Obtain approved bank guarantee from an approved bank
- Download and complete Raw Material Assistance application form
- Submit application to nearest NSIC branch office with supporting documents
- NSIC conducts unit inspection and evaluates credit worthiness
- Upon approval, receive credit facility for raw material procurement
Documents you’ll typically need
- Udyam Registration certificate
- Bank Guarantee from approved bank
- Business/Factory license
- GST registration certificate
- Bank account statements (last 6-12 months)
- Balance sheet/financial statements
- Aadhaar and PAN of business owner
The exact checklist depends on the programme and your specifics.
Frequently asked
Is bank guarantee mandatory for RMA?
Yes, bank guarantee from an approved bank is the required security for the Raw Material Assistance Scheme.
What raw materials are covered under RMA?
NSIC has arrangements with bulk producers for Steel, Aluminium, Copper, Zinc, Polymer, Bitumen, Emulsion, Cement, and other key industrial inputs. MSMEs can also propose other suppliers.
How long is the credit period?
The scheme provides credit support for raw material purchases up to 180 days, after which repayment is expected.
What is the advantage of RMA over direct supplier purchases?
RMA enables MSMEs to access bulk purchase economics and cash discounts from bulk producers, improving cost efficiency and working capital management.
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.