North East Entrepreneur's Development Scheme [NEEDS] [Earlier known as NEEF]

Objective

The NEEDS has been created to help first generation entrepreneurs who are short of equity and are unable to meet the conditions of banks/ financial institutions. Special focus is given on agricultural and horticultural activities and activities with local raw material.

Eligibility

New projects in tiny & SSI sectors, expansion, modernization and diversification of existing units etc. Benefits can be extended to Proprietorship &  Partnership Concerns and Companies. Technical qualification of the promoter in the relevant field is a pre-requisite.

Nature of assistance: Quasi Equity

Project Cost:    Maximum of Rs. 25 lakh

Extent of Assistance:

Up to 25% of the project cost. NEEF assistance may be supplemented with normal NEDFi loan component together with one cycle of working capital in deserving cases.

Promoters’ contribution:    Minimum 15%

Interest rate:    Service charge of 1% per annum.

Repayment period:    Maximum 7 years (including moratorium upto 3 years)

Security:

Pari-passu charge with Banks/SFCs/ SIDCs on the assets of the concern/company; collateral guarantee if needed but not insisted for deserving cases; personal guarantee from the promoters.