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NEDFi Rupee Term Loan Scheme

NEDFi Rupee Term Loan Scheme

NEDFi Rupee Term Loan Scheme

The Rupee Term Loan (RTL) Scheme is provided by North Eastern Development Finance Corporation Ltd. (NEDFi) to provide financial assistance to the manufacturing or service sector to all North-Eastern states in India. The scheme was introduced to provide medium or long term funding from NEDFi, to increase and expand production in Micro, Small and Medium Enterprise (MSME) sectors of North-Eastern states.


NEDFi is a public limited company established under Section 4-A of the Companies Act 1956. It provides various loans or schemes through MFI or NGOs for MSME and SME sectors.

RTL scheme is a part of Project Finance which provides financial assistance to industrial sectors to start-up SMEs, up-grade technology and infrastructure in North-Eastern states. Other loans provided by NEDFi under Project Finance are:

  • Equipment Finance Scheme
  • Corporate Finance Scheme
  • WCTL for Contract Finance Scheme
  • Working Capital Term Loan Scheme

Types of Loans offered through this scheme

  • Medium Loans
  • Long Term Loans

Goal of the Rupee Term Loan Scheme

The goal of this scheme is to increase the economic stability of the North-Eastern states by providing a platform to create entrepreneurs through sustainable and productive MSME sector.

Objectives of the Rupee Term Loan Scheme

  • To provide medium and long term loans to create new MSME sectors
  • Increase the production of manufacturing sectors by providing financial support to expand the clusters or industries
  • Provide financial assistance to up-grade the technology to increase the range of products, quality of products and increase the distribution geographically
  • Create employment opportunities through MSMEs
  • Increase the value of stakeholders

Benefits of the Rupee Term Loan Scheme

  • Loans can be designed as per the requirement of the project
  • Financial solutions are offered to MSMEs by NEDFi during maximum exposure in the national and international market
  • Creates an opportunity to initiate and develop the manufacturing sector for all individual or groups in North-Eastern states
  • The funding is project-dependent providing an opportunity to decrease capital funds by the investor
  • Minimum interest rates
  • Adjustable Primary and Collateral Security to obtain the loan

Click here to know about the North East Industrial Development Scheme

Funding Pattern of Rupee Term Loan Scheme

The RTL scheme provides more than Rs. 10 crores to the MSMEs for a single project. The funding is approved by the project approval committee as per the norms of NEDFi.

Financial Assistance to Individuals or Groups

The scheme supports up to 12% of financial support for every project by the MSME. The rest of the required funding for the implementation of the project can be availed through other schemes from NEDFi (refer above). However, the funding can vary as per the direction of the project approval committee.

Financial Assistance to Consortium Lenders

The scheme also provides funding to consortium lenders upon the projection of the project cost as decided by the consortium partners. The scheme financially supports 12% of the project cost. However, the limit of the funding to the consortium lenders is confined to 12%.

Debt Equity Ratio

The total liability of a shareholder to the project is calculated in the ratio to a maximum of 1.85:1.

Contribution from the Promoter

In terms of individual or groups, the promoter shall contribute a minimum of 35-40% of the total project cost. For consortium lenders, the minimum contribution to the project can be a unanimous decision by the consortium partners.

Interest Rate for the Loans

NEDFi offers the loans to the MSMEs with a Prime Lending Rate (PLR) of 3% per annum for RTL scheme.

Application Fee

The RTL scheme requires paying an up-front fee of the total loan amount availed by the Individual, groups or consortium lenders after the loan is sanctioned by the project approval committee. The details of the fee per cent are:

S. No




Up to Rs. 10 crore



Above Rs. 10 crore


Security to Submit

Primary Security

The NEDFi requires all the assets obtained through RTL scheme shall be secured with the first charge as a primary security to recover the loans. Although the norms require the loans to be secured with the first charge, the board of directors could change priorities if necessary.

Collateral Security

  • The NEDFi might require collateral security to avail the RTL scheme
  • The applicant who applies for the loan must own the property
  • The property should not be in the lease or occupied by the tenants

Repayment of the loan

  • The duration of repaying the loan can be extended up to 5-8 years.
  • The duration can be extended upon the approval from the board of directors
  • However, any postponed payment shall not be considered for extension and should be repaid before the stipulated time.

 Click here to know about the  North East Region Textile Promotion Scheme

Eligibility Criteria to Avail RTL Scheme

  • Industrial sectors located in any North-Eastern states that require up-gradation in infrastructure, technology and distribution outlets
  • Applicable to Individuals, Groups or Consortium Lenders
  • Manufacturing and services sector operating in North-Eastern states
  • The manufacturing and services sector should be registered with GST authority
  • All MSME and SME sectors

Project Approval

To avail loan for RTL scheme, the applicant must produce Detailed Project Report (DPR) for approval. The report should contain an analysis of geographical location, infrastructure, case studies or research on the products, marketing, loan amount required and purpose of the loan

The project will be approved by the project approval committee or by the board of directors at NEDFi.

Information Required for Project Approval

  • Details of the company or firm
  • Project proposal and DPR
  • Details of Promoters and Directors
  • Details of employees, assets and organisational chart
  • Details on products being produced, research on competitors and industry analysis
  • Details on Geographical location and land
  • Details on the process of the company such as salient features, quality control and waste management
  • Details on raw materials, utilities, technical consultants, architects and technology
  • Report on the cost of the project

Documents Required for Project Approval

  • Detailed Project Report
  • Documents of the company or the firm such as registration certificate, memorandum articles etc.
  • Proof of documents related to the applicant, directors, associated companies and assets
  • If the company is active more than a year, documents related to balance sheet, financial ratios and cash flow statement
  • Proof of documents such as PAN Card, Driving License, Net-worth, banking details and IT returns

Process of Availing the Loan

Step 1: Prepare the Detailed Project Report (DPR)

Step 2: Prepare a Project Proposal

Step 3: Organise the documents as required by NEDFi (check above links)

Step 4: Provide the Project Proposal and DPR to the project approval committee or the board of directors

Step 5: After approval of the project, pay the application fee

To know more on how to a prepare project proposal, DPR and documentation process, click here

The RTL scheme is applicable to the following North-Eastern states:

  • Sikkim
  • Arunachal Pradesh
  • Assam
  • Meghalaya
  • Nagaland
  • Manipur
  • Tripura
  • Mizoram

Click here to know about the details of NEDFi branches