National Equity Fund

Purpose
To meet gap in prescribed minimum promoters' contribution and/or in equity

Eligible Borrowers
Small entrepreneurs for setting up new projects in tiny / small scale sector and rehabilitation of potentially viable sick SSI units irrespective of the location. Existing tiny and small scale industrial units and service enterprises [tiny enterprises would include all industrial units and service industries (except Road Transport Operators) satisfying the investment ceiling prescribed for tiny enterprises] undertaking expansion, modernization, technology up-gradation and diversification can also be considered irrespective of the location.

Norms
Scheme operated through SFCs / twin function SIDCs / Scheduled Commercial Banks / Select Urban Co-operative Banks

Cost of project - Not to exceed Rs.5 million

Soft Loan limit - 25% of cost of project subject to a maximum of Rs.10,00,000 per project .

Service Charges - 5% p.a. on soft loan