The scheme follows MSSIDC's earlier secured credit schemes. Under the scheme SSI and non-SSI units would be provided credit for procurement of raw material against issue of post-dated cheques. The credit period varies from 60 days and 120 days with varying interest rates.

A press release issued by the MSSIDC states that in the wake of cognizable shake up in the economic scenario and considering the rapidly changing financial environment, the new scheme would render a good helping hand to the SSI and non-SSI units.

The earlier schemes for credit would continue, the MSSIDC has said. In its new schemes: (a) the MSSIDC provides supply of raw materials on credit against bank guarantee or letter of credit, and, (b) provides warehousing-cum-credit facility for purchase of raw material.

First scheme pertains to creditlimit above Rs five lakh and the unit has to submit prescribed application form for credit rating for registration with the MSSIDC.

The second pertains to credit limit upto Rs five lakh and do not involve registration and credit rating.