Enterprise Development Scheme (EDS)

Objective:
Development of micro enterprises in the North Eastern Region by providing financial assistance in the form of “working capital term loan” for setting up/expansion/modernization of micro business ventures.
Purpose:
To meet working capital requirements for income generating business activity excluding cultivation/plantation/ Real Estate/ Contract works.
Project cost (working capital for one cycle) :
Should not exceed Rs 20 lakhs
Nature of Assistance: Term Loan
Extent of Assistance: Maximum 75% of the project cost as Working Capital Term Loan.
Promoter’s Contribution: Minimum of 25% of the Project Cost
Upfront Fee: 1% of the Term Loan sanctioned.
Security :
(a) First charge on current assets including book debts both present and future
(b) Hypothecation of other fixed assets of the unit both present and future
(c) Personal Guarantee of the Promoter
(s)/Guarantor (s)
(d) Additional security (case to case basis/ risk profile of the project)
Rate of Interest : 8% p.a. on monthly basis
Repayment:
Maximum period of 7 years (including moratorium period) payable on monthly basis.