Frequently Asked Questions

What are the various financing schemes of NEDFi ?

NEDFi offers diversified range of financing schemes starting from project finance, equipment finance, North East Equity Fund etc.. For details, please click on Products and Services.

What is the interest rate charges under different schemes?

NEDFi's Interest rates are linked to the PLR, duration, type of assistance and rating of the clients. There is provision for 1% rebate on interest rate on the timely repayment.

How much interest rate NEDFi charges on its NEEF loan?

Under North East Equity Fund scheme NEDFi finances 25%  of the project cost under North East Equity Fund Scheme at a service charge of 1.5%  per annum upto maximum of project cost of Rs.15 lakh. NEDFi can supplement it with normal term loan upto 60% of the project cost.

What types of project are financed by NEDFi ?

NEDFi finances provides which are considered industrial activity under section 2(C) of the IDBI Act. Besides, NEDFi can also finance plantation of Agricultural crops of lower gestation period but it doesnot provide assistance for trading activities.

Is NEDFi a Government Organisation ?

NEDFi is promoted by IDBI, SIDBI, IFCI, ICICI, UTI, GIC, LIC and SBI.  It is a deemed Government Organisation.

What is NEDFi's viability criteria before selecting a project ?

NEDFi sees the following factors before deciding about a project:

• Promoters’ background
• Demand for products or services and the marketing arrangements.
• Technology and its suitability
• Raw material and availability
• Enviornmental aspects
• Promoters’ background: NEDFi sees the promoters’ drive, conceptual knowledge about the project, financial ability to bring the promoters’ contribution and ability to raise money when needed, past borrowing records and the ability to withstand business pressures.
• Demand for products or services and the marketing arrangements: NEDFi wants that there should be definite demand for the products. NEDFi analyses the demand supply gap for the products of the project, threats from competition over a period of time, competitive advantages of the products etc.
• Technology: The relevance of technology is utmost important. The suitability of the process in the North Eastern condition, threats from newer technology in the future, the rate of obsolestion in the industry etc. Availability of technical manpower etc.
• Raw material and availability: NEDFi desires that there should be firm arrangement for the availability of raw material over a period of time.
• Enviornmental aspects: NEDFi wants to promote non – polluting industry. In the case of industry where the pollution is high there should be sufficient provision for reducing pollution.

What is repayment period for industrial projects ?

The repayment period for industrial projects can be five to six years depending on the projected cash flows for the project. The projects having higher gestation period can have longer repayment period. NEDFi considers moratorium period from six months to one and half year depending on the nature of the project.

What is the due date of repayment  for industrial projects?

Interest is payable on the 1st day of April, July, October and January of a financial year. NEDFi has a provision of 1% rebate on the interest rate if the party pays in time throughout a financial year.