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The North Eastern Development Finance Corporation Ltd (NEDFL) is a public limited company that was established in 1995 with the aim of promoting economic development in the North Eastern region of India. NEDFL operates various schemes and programs to support businesses in the region, including the Equity Fund Scheme. In this blog, we will discuss the Equity Fund Scheme operated by NEDFL and its significance for businesses in the North Eastern region of India.
The Equity Fund Scheme operated by NEDFL provides equity finance to eligible businesses in the North Eastern region of India. The scheme is designed to help businesses with high growth potential to raise the necessary capital to grow and expand their operations. Under the Equity Fund Scheme, NEDFL invests in businesses in the form of equity or quasi-equity, which includes instruments such as convertible preference shares, optionally convertible debentures, and similar instruments.
The investment amount can range from INR 50 lakh to INR 5 crore, and NEDFL typically invests for a period of 5-7 years. The Equity Fund Scheme is open to businesses in various sectors, including manufacturing, services, and infrastructure. To be eligible for funding under the Equity Fund Scheme, businesses must meet certain criteria, including having a minimum track record of three years, a positive net worth, and a satisfactory credit rating.
The Equity Fund Scheme operated by NEDFL offers several benefits to businesses in the North Eastern region of India. Some of the key benefits of the scheme are:
Access to Capital: One of the primary benefits of the Equity Fund Scheme is that it provides businesses with access to capital. Many businesses in the North Eastern region of India face challenges in raising capital due to a lack of access to traditional sources of funding. The Equity Fund Scheme addresses this issue by providing businesses with equity finance, which can be used to fund growth and expansion.
Long-Term Capital: Another significant benefit of the Equity Fund Scheme is that it provides businesses with long-term capital. Unlike other sources of funding, such as bank loans or short-term investments, the Equity Fund Scheme provides businesses with a stable source of capital for a period of 5-7 years. This long-term funding can help businesses to plan and implement their growth strategies without worrying about the availability of capital.
Business Support: NEDFL provides more than just capital to businesses that participate in the Equity Fund Scheme. The company also offers business support services to help businesses grow and succeed. This support can include mentoring, networking opportunities, and access to industry experts. By providing these additional services, NEDFi helps to ensure that businesses in the North Eastern region of India are well-positioned to succeed.
No Collateral Required: The Equity Fund Scheme does not require businesses to provide collateral for the funding they receive. This is a significant benefit for businesses that may not have sufficient collateral to secure traditional bank loans or other forms of funding. By not requiring collateral, NEDFL helps to level the playing field and ensure that businesses with high growth potential are not excluded from funding opportunities.
Reduced Risk: Finally, the Equity Fund Scheme can help to reduce the risk for businesses that participate. Since NEDFL is investing in businesses in the form of equity or quasi-equity, the risk is shared between NEDFL and the business. This can help to reduce the overall risk for the business and make it easier for them to access capital.
In conclusion, the Equity Fund Scheme operated by NEDFL is an important initiative to promote economic development and entrepreneurship in the North Eastern region of India. The scheme provides much-needed financial support to eligible businesses with high growth potential, and it offers a range of benefits, including access to long-term capital, business support services, and reduced risk. The Equity Fund Scheme is particularly valuable for businesses in the North Eastern region of India, where access to capital can be a significant challenge.
Neusource Startup Minds India Ltd. is a leading provider of business consulting and advisory services in India, and we are committed to supporting businesses in the North Eastern region of India. We recognize the importance of the Equity Fund Scheme operated by NEDFi, and we encourage eligible businesses to explore this funding opportunity.
At Neusource Startup Minds India Ltd., we offer a range of services to help businesses in the North Eastern region of India to grow and succeed. Our team of experienced consultants can provide guidance on business strategy, financial planning, marketing, and more. We also offer company registration services, compliance support, and other services to help businesses navigate the complex regulatory landscape in India.
We believe that the Equity Fund Scheme operated by NEDFi can be a game-changer for businesses in the North Eastern region of India, and we are committed to helping eligible businesses access this funding opportunity. If you are interested in learning more about the Equity Fund Scheme or any of our other services, please contact us today. Our team of experts is ready to help you take your business to the next level.
19 Apr
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