MEMORANDUM OF UNDERSTANDING

Between
Name of the Bank
&
The National Small Industries Corporation Ltd.

This Memorandum of Understanding (hereinafter called MOU) is made on …………….

2023 at New Delhi between Name of the Bank, address having its Head Office at
………………. (Hereinafter referred to as (Name of the Bank) which expression shall,
unless it be repugnant to the context or meaning thereof, mean and include its
successors and assigns) of the First Part,

and

The National Small Industries Corporation Ltd., a Government of India Enterprise

having its registered office at NSIC Bhawan, Okhla Indl. Estate, New Delhi -110020
(hereinafter referred to as NSIC, which expression shall, unless repugnant to the
meaning or context thereof mean and include NSIC, its successors in interest and
permitted assigns) of the Second Part.

WHEREAS the NSIC and (Name of the Bank) are desirous of executing Memorandum
of Understanding (MOU) with a view to record the broad terms and conditions mutually
agreed to, by and between them subject to working out the modalities and terms of
implementation in detail, in due course, as may be agreed between the NSIC and Name
of the Bank.

NOW THEREFORE THIS MEMORANDUM OF UNDERTSTANDING WITNESSETH

AS UNDER:

1. Loan Application forms of (Name of the Bank) along with the broad terms &
conditions will be made available at the operational office(s) of NSIC, to be
provided MSME units (List of NSIC Offices is enclosed).

2. (Name of the Bank) will provide a list of Branches and controlling offices where
application forms for credit support are to be forwarded by the operational offices
of NSIC after collecting applications from interested MSMEs.

3. NSIC will forward the credit proposals to (Name of the Bank) branches, and also
forward all other Loan applications like Commercial Property Loan, Vehicle Loan
used for Commercial Purposes, Business Loan without any liability on its part for
sanction.

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4. NSIC will also forward Commercial Credit Card application to (Name of the Bank),
on each application forwarded,(Name of the Bank) will pay a sum of Rs 1500/- as
service charges to NSIC.

5. (Name of the Bank) may accept loan applications forwarded by NSIC and consider
sanctioning loans on merit basis and as per lending norms laid down in the lending
policy of the Bank.

6. After sanction of the loan applications, as mentioned at Sl. No. 3 and forwarding of
applications for Commercials Credit Card as mentioned at Sl. No. 4 all necessary
action relating to dealing with the borrowers (including disbursement, monitoring,
recovery etc.) would be taken up by (Name of the Bank) under intimation to
concerned branch of NSIC and Head Office.

7. Upon sanction of the loan, (Name of the Bank) will pay within 15 days, 50% of the
processing fee/facilitation fee to the concerned NSIC branch office under intimation
to Head Office. Whereas, in case Commercial Credit Card once the application is
forwarded to (Name of the Bank) of the interested MSMEs, a sum of Rs 1500/- as
service charges will be paid by the (Name of the Bank) for each application so
forwarded. In case the processing fee/facilitation fee or service charges is not
received within the stipulated time then bank has to pay interest @8% on the
processing fee/facilitation fee/service charges to be received.

8. Any unresolved issues relating to non-payment of dues / processing

fees/facilitation fees both NSIC and (Name of the Bank) should step in to resolve
the same.

9. This arrangement of financing by (Name of the Bank) branches shall be extended

to the projects relating to MSME Sector at different places where bank branches
are located or other important industrial centres throughout the country.

10. NSIC is implementing various schemes for the benefits and promotion of MSMEs
sectors like Raw material Assistance Scheme, Single Point Registration Scheme,
Consortia and Tender Marketing, Infomediary Services etc. (Name of the Bank) will
promote and encourage among their MSME clients to avail the various facilities
offered by NSIC.

11. (Name of the Bank) / NSIC will organize various open houses / exclusive sessions,
campaigns to create awareness about NSIC’s schemes being implemented by it as
well as the arrangements like the one covered under this MOU. (Name of the
Bank) and NSIC may also jointly hold similar open houses / campaigns to create
awareness of their schemes and also take necessary steps to promote the
business of mutual interest.

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12. Under this understanding, the above arrangements would be given wide publicity
by NSIC and Name of the Bank. Details of the arrangement shall also be
publicised through the website of NSIC and Name of the Bank.

13. This MOU will be valid for a period of 3 years from the date of its execution and
may be renewed on mutually agreeable terms & conditions. Any amendment to
the MOU will be mutually agreed upon and will be in writing signed by both the
parties. During the term of this MOU and extension thereof, NSIC or (Name of the
Bank) may enter into similar arrangements with any other agencies / Banks /
Financial Institutions.

14. Neither party shall be liable for any failure, inability or delay in performing the
obligation hereunder if such failure, inability or delay be due to an act of God, war,
explosion or sabotage, riots, civil disturbance, strike, lockout, labour trouble,
accident, casualty, law and order or regulation. Due cogency and every reasonable
effort shall be used by each party in curing such cause.

15. The MOU can be terminated by either party by giving 60 (sixty) days prior notice to
the other party. During this notice period, NSIC shall not collect any fresh
applications from any MSME Unit to be forwarded to (Name of the Bank) for credit
support. (Name of the Bank) will however to carry out and complete the appraisal
of applications in all cases where the applications are received by them prior to the
date of termination notice.

16. (Name of the Bank) shall have the right to refuse, accept or not to accept the
proposal of a particular Micro, Small & Medium Enterprise at its sole discretion and
the same may not be disclosed to the customer. However at the request of NSIC,
(Name of the Bank) may inform the reasons for rejection to NSIC.

17. The agreement shall be governed by and construed in accordance with the Indian
Law. The Court of NCT of Delhi shall have the exclusive jurisdiction over any
disputes arising out of or in relation to this agreement.

In affirmation, the parties hereto have signed this Memorandum of Understanding

on this day first here in above written.

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