Types of Assistance: Term loan, direct subscription/underwriting of equity and debt instruments, provide financial guarantee and participate in deferred payment guarantee.
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Project Cost: Minimum assistance bombay loan ordinarily finances projects with loan component of Rs.50 lakh and above. However smaller projects in innovative fields and in the hill states are also considered.

Nature of Assistance: Rupee Term Loan
Promoters’ contribution: 30-40% of the total project cost. However, in the case of consortium financing it will be at par with the norms of All India Financial Institutions.

Debt Equity Ratio: Ordinarily 1.5 : 1
Interest Rate: Based on Prime Lending Rate fixed from time to time. Actual rate within the prevailing rate band depends upon creditworthiness of borrower and risk perception. As on date, the prevailing interest rate is 15% per annum. There is provision for 1% rebate on interest rate for timely repayment on due dates.

Up-front fee: 1% of the loan amount sanctioned
Security: First charge on movable and immovable fixed assets.
The NEEDS has been created to help first generation entrepreneurs who are short of equity and are unable to meet the conditions of banks/ financial institutions. Special focus is given on agricultural and horticultural activities and activities with local raw material.

Eligibility
New projects in tiny & SSI sectors, expansion, modernization and diversification of existing units etc. Benefits can be extended to Proprietorship & Partnership Concerns and Companies. Technical qualification of the promoter in the relevant field is a pre-requisite.

Repayment period: Maximum 7 years (including moratorium upto 3 years).

Security:
Pari-passu charge with Banks/SFCs/ SIDCs on the assets of the concern/company; collateral guarantee if needed but not insisted for deserving cases; personal guarantee from the promoters.