Micro Finance (NEDFL Scheme)
NEDFi has launched a scheme to work with the NGO/ voluntary agencies (VAs) by providing financial assistance to them for contributing to the people for self-employment projects that generate income. The main motive of NEDFi is working towards developing and supporting NGOs/VAs with good credit records or records of accomplishment in rural areas.
Terms and conditions
There are the following terms and conditions or nature of assistance of the scheme and the conditions provided by the NEDFi:
• The MFIs should use the fund only for the Income generation purposes of the ultimate borrowers
• MFI shall have to abide by RBI norms
• MFI shall provide collateral security in proportion to the percentage of the loan amount as per the sanctioning authority
• The tenure for repayment is a maximum of 5 years.
• The Processing Fee can increase a maximum of 1% + GST (Goods and Services Tax)
• The interest rate on the loan amount would start from 8 % p.a.
• NEDFi would bring the amount at Prime Lending Rate (PLR) + 0.5 % (administrative charge).
Who can apply?
• MFI (Micro Finance Institutions) should be a regulated organization.
• MFI should be associated with SRO as per RBI guideline
• MFI should complain with NBFC/MFI guidelines of RBI
• MFI must be in existence for at least 3 years
• The registration of MFI with Credit Information Bureaus is necessary.
• MFI should be registered and have an operation in Northeast India.
• Photo identity and Address proof: According to RBI KYC guidelines.
• Business Proof: MOA (Memorandum of Association) & AOA/GST Registration/ITR as per applicability.
• Projected financials
• Additional documents can be collected during the loan application process as per actual requirements.
Security for the loan amount can be in the following forms:
• Hypothecation of book debt.
• Personal Guarantee of the chief functionaries.
• Collateral in the form of Liquid Security.