(i)

Name of the facility

Short Term Loan against Central Subsidies Receivable

(ii)

Type of facility

Fund based short term loan facility

(iii)

Tenure of the loan

From 3 months to 1 year or receipt of subsidy, whichever is earlier

(iv)

Purpose

Bridging the temporary liquidity mismatch in the business operation.

(v)

Margin

Upto 50% of the sanctioned subsidy amount.

(vi)

Interest Rate

8.50 % p.a. (monthly rests, on reducing balance)

(vii)

Security

1. Demand Promissory Note
2. Personal Guarantee of promoters / Directors
3. Lien of subsidy receivable

(viii)

Repayment of Principal

Monthly / Quarterly / Bullet repayment at the end of tenure or at the time of receipt of subsidy.

(ix)

Processing Fee

0.25% plus GST

(x)

Prepayment penalty

Nil

(xi)

Eligibility

1. The applicant must have central subsidy sanctioned by the competent authority i,e. NEIIPP 2007, NEIDS 2017 etc. or similar.
2. The applicant should not be an NPA in NEDFi’s books or any other bank
3. The applicant should have a satisfactory CIBIL record
4. The central subsidy should not be marked lien with any other bank / financial institution; else obtain NOC from the lender bank for marking the central subsidies lien in favour of NEDFi.

(xii)

Other Conditions

1. Simplified application format and processing format to be used.
2. Simplified appraisal format to be adopted.