NEDFI

Project Finance Scheme

Objective: To provide long term finance for the establishment of new industrial, infrastructure,
agri-horticulture, fishery and animal husbandry projects as well as expansion, diversification and
modernization of existing ones.
Types of Assistance: Term loan, direct subscription/underwriting of equity and debt instruments,
provide financial guarantee and participate in deferred payment guarantee.
Eligibility: ndustrial concerns conforming to the definition in !ection " #c$ of the %& 'ct,
nfrastructure, 'gro-horticulture, (ishery and 'nimal )usbandry projects.
Project Cost: *inimum assistance+ ,-%(i ordinarily finances projects with loan component of
.s."/ la0h and above. )owever smaller projects in innovative fields and in the hill states are also
considered.
Maximm assistance: ,ormally, ,-%(i can consider up to maximum exposure of 123 of paid
up capital 4 reserves. )owever, it can consider projects requiring higher investment in
consortium with other financial institutions and ban0s.
!atre of assistance: .upee Term 5oan
Promoters" contribtion: 62-723 of the total project cost. )owever, in the case of consortium
financing it will be at par with the norms of 'll ndia (inancial nstitutions.
#ebt E$ity %atio: 8rdinarily 1./ + 1
&nterest %ate: &ased on 9rime 5ending .ate fixed from time to time. 'ctual rate within the
prevailing rate band depends upon creditworthiness of borrower and ris0 perception. 's on date,
the prevailing interest rate is 1/3 per annum. There is provision for 13 rebate on interest rate for
timely repayment on due dates.
'p(front fee: 13 of the loan amount sanctioned
Secrity: (irst charge on movable and immovable fixed assets.
#ocmentation:
1. 5oan 'greement.
2. %eed of hypothecation.
3. 9ersonal guarantee from main promoters, wherever required.
4. :nderta0ing from the promoters for
o *eeting overrun/shortfall in the project cost/means of financing
o ,on-disposal of shareholdings by the promoters
5. :nderta0ing from *% for non-receipt of commission, if company is in default to ,-%(i.
6. .esolution under !ection ";6 #1$#a$ and ";6#1$#d$ of the <ompany=s 'ct.
!orth East E$ity Fn) *!EEF+

Objective
The ,--( has been created to help first generation entrepreneurs who are short of equity and
are unable to meet the conditions of ban0s/ financial institutions. !pecial focus is given on
agricultural and horticultural activities and activities with local raw material.
Eligibility
,ew projects in tiny 4 !! sectors, expansion, modernization and diversification of existing units
etc. &enefits can be extended to 9roprietorship 4 9artnership <oncerns and <ompanies.
Technical qualification of the promoter in the relevant field is a pre-requisite.
!atre of assistance+ >uasi -quity
Project Cost+ *aximum of .s. "/ la0h
Extent of Assistance+
:p to "/3 of the project cost, subject to a maximum of .s.6.?/ la0h. ,--( assistance may be
supplemented with normal ,-%(i loan component together with one cycle of wor0ing capital in
deserving cases.
Promoters" contribtion+ *inimum 1/3
&nterest rate+ !ervice charge of 1./3 per annum.
%epayment perio): *aximum ? years #including moratorium upto 6 years$
Secrity:
9ari-passu charge with &an0s/!(<s/ !%<s on the assets of the concern/company@ collateral
guarantee if needed but not insisted for deserving cases@ personal guarantee from the promoters.

Micro Finance Scheme
&ntro)ction:
The people in ,orth -ast ndia are predominantly in the farming sector. (or trading and
production purposes, small borrowers still depend on the local moneylenders whose interest rates
are normally very high. t becomes rather heavy on the borrowers who are poor, illiterate and do
not understand the intricacies involved in formal lending. Therefore, they do not approach ban0s
despite their needs.
Aith the help of ,on Bovernment 8rganisation #,B8s$, individuals can be organised under !elf
)elp Broups #!)Bs$ for the purpose of on-lending from financial institutions. 'lso, lin0ages can
be established for networ0ing with these !)Bs with the formal ban0ing sector.
%espite the vast expansion of the formal credit system in the country, it has not been able to
cover adequately the need of small loan requirement of the rural poor. The ban0s have not been
involved much in lending of this 0ind as it encompasses high ris0 4 high transaction cost and too
many small borrowers. (aced with such constraints, the unreached small borrowers can be
helped by ,-%(i through the provision of small loan through intermediaries. t will lead to creation
of informal savings and help in inculcating the habit of borrowing and repaying.
!E#Fi"s Objective
There is a need to target small and mid size agriculturist, self employed personnel, entrepreneur@
not so much as a measure of poverty alleviation but as a measure of productivity/efficiency
building mechanism to support the greater goal of overall development of the region.
)ence, ,-%(i would loo0 towards developing 4 supporting ,B8s/Coluntary 'gencies #C'$ with
good trac0 record for on-lending to the DneedyD for ta0ing up productive activities. The program
would envisage extending financial assistance to ,B8s/C's for on-lending to the people for self-
employment projects that generate income, allowing them to care for themselves and the
families.
The Proposal:
The approach would focus on identifying micro finance institute #*($ as long tern partners and
providing credit support for their micro credit initiatives. The *(s may be well-organised ,on
Bovernment 8rganisation #,B8$ with good networ0s or other micro finance organisations. The
*(s would be selected on the basis of their credibility, trac0 record, professional expertise and
management practices, credit rating, field visits etc.
Operational Strategy:
The approach to assistance under ,*(! will be different from that of conventional lending under
other programs of ,-%(i in as much lending decisions under ,*(! will be governed by the trac0
record, capabilities of reach of *(s rather than the security offered and promoter=s sta0e.
Operational Mo)alities:
The operational modalities of the ,*(! will be as follows+
Eligible ,orro-er
Aell managed ,B8s/C's/<ooperative !ocieties, Cillage <ouncils that++
are in existence for at least 6 years
have experience in developing !)B
have good trac0 record
have proper system of boo0 0eeping
adequate financial management ability
well-organised !)Bs engaged in income generating activities.
Terms:
*inimum amount that can be given to a !)B is .s "2 thousand and maximum up to .s.
7 la0h.
,-%(i would lend the amount at 9rime 5ending .ate #95.$ E 2./ 3 #administrative
charge$.
,B8s to lend it to the !)Bs/individuals at a rate determined by them after discussing
with ,-%(i. n no case more than 73 above ,-%(i=s 95..
.epayment period by the ,B8 would depend on the projects. *aximum period is / years
including a reasonable moratorium period. The repayment period by the ultimate
borrower will be 1-6 years.
!ome feasibility study of the projects sent by the !)Bs should be done by the ,B8s
before being accepted by ,-%(i. The individual projects would be prepared by the ,B8s
with details.
,-%(i would help !)Bs, ,B8s in identifying activities and in conducting seminars,
trainings, wor0shops etc..
,B8 will apply as per ,-%(i application format .
,B8Fs to please use chec0list.
Activities to be finance):
ncome generation through agriculture #including farm implements$.
8ther farming activities mainly + 9iggery, 9oultry, (ishery, %airy etc.
*icro industries.
!ervice !ector including transportation etc.
'ltimate Target .rop :
(armers - 9etty Traders
Aomen - Gouth
<apacity &uilding of ,B8s
#ocmentation:
5oan 'greement.
%eed of )ypothecation.
9romissory ,ote.
.esolution of executive body accepting the terms and conditions for availing the loan.
Secrity:
)ypothecation of all the movable assets of the ,B8.
9romissory note from the ,B8.

/or0ing Capital Term 1oan

Objective:
This scheme is aimed for those units currently facing problem due to lac0 of wor0ing capital support from
commercial ban0s, but can be made viable with the infusion of fresh funds by way of one time core
wor0ing capital assistance.
Eligibility:
1. The scheme is meant for limited companies which are industrial concerns as defined in %& 'ct.
". Those limited companies which have not got any wor0ing capital+
a. They are defaulter in ban0s, but not willful defaulter.
b. They were under financed 4 hence running in lower capacity.
c. There is mar0et for the product.
d. The promoters are competent and persons of integrity.
e. Technology is not outdated.
6. The <ompany and the unit must be potentially viable.
2antm of Assistance:
?/3 of the wor0ing capital requirement of business for one cycle of operation.
Promoters" Contribtion: "/3
&nterest rate: 95. E weightage of ris0.
%epayment Perio): *aximum 6 years
The borrower shall approach commercial ban0s for meeting its normal wor0ing capital requirement at any
time during currency of the loan. 's and when the assistance is sanctioned by the ban0, the wor0ing
capital loan from ,-%(i should be repaid out of the proceeds of the loan sanctioned by the ban0. ,-%(i
in turn shall release its charge on current assets and also concede second charge on fixed assets if so
insisted by the ban0.
Secrity:
i. (irst charge by way of hypothecation of current assets.
ii. <harge on fixed assets of the unit.
iii. 9ersonal Buarantee of 9romoter %irector/<orporate Buarantee
iv. (irst pari-passu charge on the fixed assets of the unit, if the assets are mortgaged to other
institutions/ &an0
v. 'dequate collateral security
'pfront fee: 1.223 of the loan amount

<ontact
E$ipment Finance

Objective
(or acquiring specific machinery/equipment
Eligibility
(inancially sound companies
!hould be in the operation for a period of / years, should be ma0ing profit for the last
three years.
*ust have a good trac0 record.
Exclsion
'ssistance under the scheme will not be available for the following+
'cquisition of second hand equipment/machinery
n- house fabrication of equipment/ machinery
.eimbursement of the cost of equipment/ machinery purchased more than ;2 days prior
to the date of application.
Brass root projects or major/ expansion/ diversification, which call for detailed appraisal.
!atre of assistance: .upee Term 5oan
Extent of Assistance:
?23 of cost of equipment plus taxes/duties, transportation and installation charges. *inimum+
.s."/ la0h *aximum+ .s.12 <rore
Promoters" contribtion: 623
#ebt E$ity %atio: 1./+1
Crrent ratio: 1.66+1
&nterest coverage: "+1
&nterest rate:
&ased on 9rime 5ending .ate fixed from time to time. 'ctual rate within the prevailing rate band
depends upon creditworthiness of borrower and ris0 perception.
'pfront fee: 13 of loan amount sanctioned
%epayment perio): 6 to H years
Secrity:
-xtension of first charge or hypothecation of assets financed. 9ersonal guarantee/ <orporate
guarantee
#ocmentation:
5oan 'greement
%eed of hypothecation
%emand promissory note