(i)

Name of the facility

Short Term Loan against Liquid Security

(ii)

Type of facility

Fund based short term loan facility

(iii)

Tenure of the loan

From 3 months to 1 year

(iv)

Purpose

To meet the temporary liquidity mismatch in the business operation or for payment of statutory dues, salary/ wages/ electricity bill, rent etc.

(v)

Margin

Upto 90% of the value of liquid security

(vi)

Interest Rate

7.00 to 7.50 % p.a. (monthly rests, on reducing balance)

(vii)

Types of Liquid Securities accepted

1. Any Term Deposit Certificate of PSU or Pvt. Bank
2. LIC policies (Endowment, Money-back or similar)
3. NSC Certificate
4. KVP Certificate
5. Postal Deposits
6. Govt./PSU Bank Bonds
7. Other similar liquid securities

(viii)

Repayment of Principal

Monthly / Quarterly / Bullet repayment at the end of tenure

(ix)

Security

1. Lien on underlying liquid security
2. Personal Guarantee of the borrower

(x)

Processing Fee

Nil (in line with similar products of banks)

(xi)

Prepayment penalty

Nil (in line with similar products of banks)

(xii)

Eligibility

1. The applicant must have an existing business for which fund is being availed
2. The applicant may be an existing client of NEDFi or a new client establishing new relationship with NEDFi
3. The applicant should not be an NPA in NEDFi’s books or any other bank
4. The applicant should have a satisfactory CIBIL record

(xiii)

Other Conditions

1. Simplified application format and processing format to be used
2. Simplified appraisal format to be adopted.
3. If the maturity of securitized instrument falls prior to the loan repayment date, the borrower should be agreeable to renew / reinvest the instrument and mark fresh lien in favour of the Corporation.
4.  FDs under tax saving scheme (with lock-in period), KVP & NSC certificates can be accepted if their maturity date is more less near the loan maturity date.
5. In case of LIC Policies or similar instruments, surrender value as on the date of sanction shall be considered.
6. Market linked instruments like mutual funds etc. will not be considered.