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Self Employment Directorate:
NATIONAL EQUITY FUND (NEF) SCHEME
1. NEF Scheme revised by Govt. of India In 2000 to extend benefits to a large number of small scale and tiny units for providing Self-Employment.
2. Project cost increased to Rs 50.00 Lakhs.
3. No restrictions on locations of new units.
4. Project Cost
a. New Project - Upto Rs 50.00 Lakhs
b. Existing Units - For expansion, modernisation, technology upgradation not to exceed Rs 50.00 Lakhs.
5. Promoters Contribution. Minimum 10% of project cost.
6. Amount of Assistance. Soft seed amount to meet the gap in equity maximum of 25% of project cost or Rs 10.00 Lakhs per project, whichever is lower.
7. Interest
a. Soft Loan - No interest except service charge of 5% per annum.
b. Term Loan - As per prevailing bank rate of interest
8. Repayment Period. 7 years (including moratorium upto 3 years for the soft loan).
9. Security. No security including collateral is to be insisted upon for the soft loan.
10. Operating Agencies. All offices of Small Industries Development Bank of India (SIDBI) through State Financial Corporations (SFCs), Twin Financial Industrial Development Corporation and Scheduled Commercial Banks.
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