| 1. |
NEF Scheme revised by Govt. of India In 2000 to extend benefits to a large number of small scale and tiny units for providing Self-Employment. |
| 2. |
Project cost increased to Rs 50.00 Lakhs. |
| 3. |
No restrictions on locations of new units. |
| 4. |
Project Cost
| a. |
New Project - Upto Rs 50.00 Lakhs |
| b. |
Existing Units - For expansion, modernisation, technology upgradation not to exceed Rs 50.00 Lakhs. |
|
| 5. |
Promoters Contribution. Minimum 10% of project cost. |
| 6. |
Amount of Assistance. Soft seed amount to meet the gap in equity maximum of 25% of project cost or Rs 10.00 Lakhs per project, whichever is lower. |
| 7. |
Interest
| a. |
Soft Loan |
- |
No interest except service charge of 5% per annum. |
| b. |
Term Loan |
- |
As per prevailing bank rate of interest |
|
| 8. |
Repayment Period. 7 years (including moratorium upto 3 years for the soft loan). |
| 9. |
Security. No security including collateral is to be insisted upon for the soft loan. |
| 10. |
Operating Agencies. All offices of Small Industries Development Bank of India (SIDBI) through State Financial Corporations (SFCs), Twin Financial Industrial Development Corporation and Scheduled Commercial Banks. |
