What is NEF Scheme?
NEF Scheme is National Equity Fund Scheme of Govt of India for financing small scale and tiny units for providing Self Employment.
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What is Project Cost ceiling?
Project cost for new projects and expansion, modernization, technology up gradation can be unto Rs. 50 lakhs.
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What is the Promoter’s contribution?
Promoter has to contribute a minimum of 10 percent cost of project.
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How much soft loan will be applicable under the Scheme?
Soft Loan Assistance under NEF Scheme is maximum of 25 percent of project cost or Rs 10 lakhs whichever is less.
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What is the interest rate on the finance granted under this Scheme?
There is no interest on soft loan but a service charge of 5 percent per annum will be changed.For term loan interest rates are as per bank rates.
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What is repayment period?
Repayment period for the loans granted under the Scheme is 7 years.
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Is there any moratorium period under the Scheme?
Yes, Moratorium is granted for soft loan for first 3 years. Subsequently payments will be coterminous with term loan.
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Is there any Security required for obtaining loan?
Yes, Security is required for term loan amount. However, for soft loan the Bank can waive off collateral security.
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How can one apply for this?
For applying for loans under this Scheme, Ex-Servicemen can approach bank directly or through ZSB/RSB as being done for Semfex Schemes.
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