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NATIONAL EQUITY FUND SCHEME (NEF) OF SIDBI (SOFT LOAN ASSISTANCE) Equity type soft loan assistance from SIDBI for SSI units.
Eligibility
New projects/existing units under Tiny/Small scale sector/service enterprises
Project Cost
Not exceeding Rs.50 lakhs (including margin for working capital) in case of new projects
Not exceeding Rs.25 lakhs in case of existing units/service entrepreneurs
Promoters Contribution
Minimum 10% of the project cost
Debt-Equity Ratio
65:35 OR 1.857:1 (excluding State Investment Subsidy)
Quantum Of Assistance Of Soft Loan Under Scheme
Amount of gap in equity as per prescribed DER after taking into account promoters contribution, to the extent of 25% of the project cost subject to a maximum of Rs.10 lakhs
Interest On Soft-Loan
- NIL
Annual Service Charges
5% annual service charges.
Repayment Of Soft-Loan
Soft loan is repayable in 7 years (including moratorium of 3 years) in tune with the repayment period of normal term loan permitted by Bank for the project. Non repayment of Soft loan would attract interest as stipulated by SIDBI.
Security For Soft-Loan
- NIL
Conditions apply. The information provided above is only illustrative and not exhaustive.
Contact: For more details, please contact your nearest Andhra Bank Branch
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