The objective of the scheme is to help first generation entrepreneurs who are short of equity.
New projects in micro & small enterprises, 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: Term Loan
Project Cost: Maximum of Rs.50 lakh
Extent of Assistance:
NEEDS assistance may be supplemented with normal term loan upto a maximum of 75% of the project cost including one cycle of working capital in deserving cases.
Promoters’ contribution: Minimum 25% of the Project Cost.
Interest rate: 8% [w.e.f. 01-09-2012]
Up front Fee : 1% of the Term Loan portion of the assistance.
Repayment period: Maximum 7 years.
(a) First charge on fixed assets of the unit.
(b) Hypothecation of current assets of the unit.
(c ) Personal Guarantee of the Promoter (s)
(d) Additional security, as per requirement.