Objective:

To provide one time core working capital assistance to deserving units in the form of working capital term loan.
 

Eligibility:

• The proposed unit for which financial assistance is sought should be located within any of the eight North-Eastern States.
• The unit should be managed by competent persons with proved track record.
• The market for the product or service should be promising.
• There should be good scope for increasing the capacity utilisation with the infusion of fresh funds.

Quantum of Assistance: Upto a Maximum of 75% of the working capital requirement of business for one cycle of operation.
 

Promoters Margin :   Minimum of  25% of the projected one cycle of working capital requirement.
 

Interest rate :   Prime Lending Rate (PLR) plus a maximum spread of 3% per annum or as stipulated by the sanctioning authority.
 

Upfront fee:   1% of the loan amount for loans upto Rs.10 crores and 0.75% for loans above Rs.10 crores. 
 

Repayment period:  The WCTL principal amount shall be repayable in one bullet repayment after a period of 18 months while interest shall be payable from the date of disbursement. At the end of 18 months, if approved by the sanctioning authority, the unit shall have the option of rolling over the WCTL limit for another period of 18 months. The number of times for successive rollovers shall be decided by the sanctioning authority based on the performance of the unit.
 

Security:

1. First charge by way of hypothecation of current assets.
2. Charge on fixed assets of the unit as may be stipulated by the sanctioning authority.
3. Personal Guarantee of Promoter (s).
4. Corporate Guarantee of group companies, if necessary.
5. Collateral security, if necessary.