NEDFi Opportunity Scheme, Catalysing Development In North East India For Small Business

What is the Scheme?

North Eastern Development Finance Corporation Ltd. (NEDFi) Opportunity Scheme for Small Enterprises (NoSSE) is a scheme launched by the Ministry of Development of North Eastern Region. The scheme aims to assist small start-ups in conquering the financial problems of the north eastern region.

Under this scheme, the North Eastern Development Finance Corporation Ltd (NEDFi) provides loans at a subsidised rate to all eligible entrepreneurs.

Objective of NoSSE

The NoSSE scheme is aimed at providing long-term financial assistance for the establishment of new industrial units and infrastructure projects. Existing industrial enterprises will also receive support for expansion, diversification, and modernization under this scheme. However, commercial real estate will not be eligible for assistance.

NEDFI Opportunity Scheme for Small Enterprises (NoSSE) is intended to support local small entrepreneurs and accelerate economic growth by reducing the cost of funds for setting up industrial units.

Fees and Charges for Loans

Small business owners can apply for a loan under the NEDFi Opportunity Scheme for Small Enterprises at 8 percent per annum in monthly instalments

During the NoSSE application process, the entrepreneur will have to submit 1 percent of the sanctioned loan amount.

The maximum repayment time for loans under the NoSSE Scheme is seven years. Entrepreneurs need to pay the entire amount, plus interest in this time period of seven years.

Security for Loans

The details of the Security for Loan under the NEDFi Opportunity Scheme for Small Enterprises (NoSSE) are as follows:

Primary

• Equitable mortgage of the project site or Leasehold right
• Hypothecation of movable assets financed
• Hypothecation of current assets in case working capital assistance

Collateral/Guarantees/Other securities

• The Collateral/Guarantees/Other securities will depend on the decision of the concerned authorities.

Benefits of the Scheme

The financial assistance under NoSSE depends on the cost of the project. Loans under the scheme may be provided as either Term Loans or Working Capital, or a combination of both.

Under the NEDFi Opportunity Scheme for Small Enterprises (NoSSE), the entrepreneurs can get up to INR 1 Cr as a loan. Entrepreneurs can apply for financial assistance if the project cost exceeds Rs.50 lakhs and is under up to Rs.200 lakhs. Enterprises applying for the loan under NEDFi Opportunity Scheme require a minimum debt equity ratio of 2:1.

Who all are Eligible?

 NEDFI Opportunity Scheme for Small Enterprises assists small businesses in the following North East regions:

• Sikkim
• Arunachal Pradesh
• Assam
• Meghalaya
• Nagaland
• Manipur
• Tripura
• Mizoram

Important Document to Carry

The following documents need to submit to NEDFi before disbursement of financial assistance:

• Affidavit and Indemnity Bond
• Latest Sales Tax Clearance Certificate
• Latest Income Tax Clearance Certificate or Copy of latest Income Tax Return
• Latest Audited Balance Sheet
• The resolution by the Board of Directors of the Company regarding signing authority or copy of partnership deed in case of partnership firm
• Money receipt with revenue stamp
• No dues certificate from ATPPF authority (applicable to tea estates only)
• PAN Card copy
• Details of Bank account with IFSC code Details of Bank account with IFSC code

Eligible candidates may apply for the desired loans to the Chairman and Managing Director, NEDFi, G.S. Road, Dispur, Guwahati 781006 in the prescribed format of NEDFi.