Loan For Micro Finance Institute

Loan For Micro Finance Institutes

NEDFi has been working towards developing & supporting NGOs/Voluntary Agencies (VA)s with good track record for on-lending to the "needy" for taking up any income generating activities in the rural areas. The program envisages extending financial assistance to NGOs/VAs for on-lending to the people for self-employment projects that generate income, allowing them to care for themselves and the families.

Eligibility

MFI should be regulated organisation.
MFI should be associated with SRO as per RBI guideline
MFI should be complaine with NBFC/MFI guidelines of RBI
MFI should be in existence for at least 3 years
MFI should be registered with Credit Information Bureaus.
MFI should be registered and have operation in North East India.

Photo identity and Address proof : As per RBI defined KYC guidelines.
Business Proof : MOA & AOA/GST Registration/ITR as per applicability.
Projected financials
Additional documents may be collected during the loan application process as per actual requirement.

Key Features

Rate of Interest

12.25 % PA

Repayment

Upto 36 Months

Nature of Assistance

Term Loan

Upfront Fee

Upto 1%

Security

Hypothecation of book debt.
Personal Guarantee of the chief functionaries.
Colleteral in the form of Liqiud Secusity.

Other Terms & conditions

The MFIs should utilize the fund only for the Income generation purposes of the ultimate borrowers
MFI shall have to comply with RBI norms
MFI shall provide collateral security in proportionate percentage of loan amount as stipulated by the sanctioning authority

Key Highlight

Moratorium upto 3 months

Interest Calculation on Reducing Balance

Capacity building support