National Equity Fund Scheme

This scheme provides equity type of assistance upto Rs. 2.50 lakhs to small entrepreneurs for existing and new projects in the tiny, small scale, service sectors and for rehabilitation of potentially viable sick SSI units. The ceiling on project cost is Rs. 10.00 lakhs and the promoters contribution is 10% of the project cost (including working capital margin). The units which have already availed assistance under this scheme and whose actual total project cost (including working capital margin) does not exceed Rs. 10.00 lakhs an on the date of consideration of proposal are also eligible for additional financial assistance. While the equity type of assistance carries interest at 1% p.a. the term loan carries normal rate of interest.