NEDFi Opportunity Scheme for Small Enterprises (NoSSE)
NEDFi Opportunity Scheme for Small Enterprises (NoSSE)
The Ministry Of Development Of North Eastern Region has introduced the NEDFi Opportunity Scheme for Small Enterprises (NoSSE) for entrepreneurs. The main objective of NoSSE is to remove the hurdle of funds for the small startups in North Eastern Region. As part of this scheme, the North Eastern Development Finance Corporation Ltd (NEDFi) provides financial assistance in the form of a loan at a subsidised rate to all eligible entrepreneurs. In this article, we look at the NEDFi Opportunity Scheme for Small Enterprises (NoSSE) in detail.
Objective of NoSSE
The objective of the NoSSE scheme is to provide long term financial assistance for setting up new industrial units and infrastructure projects. The support under this scheme will also provide for the expansion, diversification, or modernization of existing industrial enterprises. The assistance will not offer to commercial real estate.
Purpose of the NoSSE
The purpose of introducing the NEDFi Opportunity Scheme for Small Enterprises (NoSSE) is to encourage local small entrepreneurs of North East India to set up industrial units with the reduced cost of funds and thus help in fast-paced economic development.
Eligibility Criteria
The small entrepreneurs of the following North East Regions are eligible for the assistance under the NEDFi Opportunity Scheme for Small Enterprises:
- Sikkim
- Arunachal Pradesh
- Assam
- Meghalaya
- Nagaland
- Manipur
- Tripura
- Mizoram
Nature of Assistance
The financial assistance is generally based on the cost of the project; the loan will be provided either in the form of Term Loan or working capital, a Combination of Both.
The businessman can get up to a maximum of Rs. 100 Lakhs as a loan under the NEDFi Opportunity Scheme for Small Enterprises (NoSSE)
Project Cost
In case the project cost is above Rs.50 lakhs, and up to Rs.200 lakhs loan, the entrepreneur can apply for financial assistance under the NEDFi Opportunity Scheme.
Debt-Equity Ratio
The Minimum Debt Equity Ratio for a loan under the NEDFi Opportunity Scheme is 2:1.
Rate of Interest
The entrepreneur can get the NEDFi Opportunity Scheme for Small Enterprises loan at a highly competitive interest rate of 8% per annum payable monthly basis
Upfront Fee
The entrepreneur needs to provide 1% of the sanction loan amount while availing the financial assistance under the NoSSE.
Repayment period
The entrepreneur has to repay the entire credit amount, along with the interest amount, within seven years. This duration is including the moratorium period; the facility for repaying the credit amount every month is available under the NoSSE scheme.
Security for Loan
The details of the Security for Loan under the NEDFi Opportunity Scheme for Small Enterprises (NoSSE) are as follows:
Primary
- Equitable mortgage of the project site or Leasehold right
- Hypothecation of movable assets financed
- Hypothecation of current assets in case working capital assistance
Collateral/ Guarantees/ Other securities
- The Collateral/ Guarantees/ Other securities will depend on the decision of the concerned authorities.
Documents for NoSSE
The following documents need to submit to NEDFi before disbursement of financial assistance:
- Affidavit and Indemnity Bond
- Undertaking as per enclosed format
- Latest Sales Tax Clearance Certificate
- Latest Income Tax Clearance Certificate or Copy of latest Income Tax Return
- Latest Audited Balance Sheet
- The resolution by the Board of Directors of the Company regarding signing authority or copy of partnership deed in case of partnership firm
- Advice from Director of Industries regarding the change in bank a/c, if any
- Money receipt with revenue stamp
- No dues certificate from ATPPF authority (applicable to tea estates only)
- PAN Card copy
- Details of Bank account with IFS code Details of Bank account with IFS code
The format of the Affidavit and Indemnity Bond is as follows:
AFFIDAVIT_INDEMNITYBOND_UNDERTAKING(1)Application Procedure
The entrepreneur needs to apply to the Chairman and Managing Director, North Eastern Development Finance Corporation Limited (NEDFi), G.S. Road, Dispur, Guwahati – 781006, in the prescribed format of NEDFi.
