For providing finance such as normal capital expenditure, working capital margin, shortfall in working capital, repayment of high cost debt and general corporate purpose like funding of business acquisition or for brand building etc. where no tangible asset creation may be envisaged.
Corporates with minimum 3 years of profitable operations for NEDFi assisted units. Further, the unit should have minimum 5 years of operations in case of other units.
The unit should have good repayment track record in case of NEDFi assisted units. In case of other units, the company as well as the group companies should have good track record with Banks or FIs.
The unit should have a minimum Net worth of Rs.5 crores (Only equity and reserves to be included). Net worth criteria may be lowered to Rs.3 crores depending on merit of the case in deserving cases keeping in view the small size of projects in NE region. Criteria with objectivity to be worked out for ascertaining net worth limit.
Long Term Debt to Equity (DER) : Maximum = 1.25 : 1
Current Ratio : 2 : 1
Interest Cover : Minimum 2 : 1
Extent of assistance: Minimum exposure would be Rs.50 Lakh and maximum exposure shall be as per the exposure norms of the Corporation.
DP Note and Personal guarantee of the Promoter Directors and any of the following or in combination which would be decided keeping in view the risk factor :
Creation / extension of first charge on pari passu basis with the existing lenders with minimum security margin of 25%.
Corporate guarantee of the group companies.
Sufficient collateral security.
Escrow of receivables of good corporates.
Up to period of 5 years from date of first disbursement including moratorium period.
Nominee Director :
Provision for appointment of Nominee Director in the event of default, if necessary.
Other conditions :
End-use of fund to be spelt out.
CA Certificate about end use of fund after disbursement within one month.