Scheme Name: Equipment Finance Scheme [EFS]

State: Assam

Description of the Scheme: Assistance for purchase of capital goods/equipment by existing units with good track record. Assistance will be for purchase of identifiable item of plant and machinery and other equipment including energy saving systems for modernisation/expansion/replacement. Machinery / Equipment imported directly will also be eligible.

Target group : Individual, Enterprises- SHGs, Cooperatives, Companies, etc

Sector of the Scheme:

Eligibility Criteria:

• Have been in operation for atleast last 3 years.
• Have earned cash profits and / or declared dividend on equity shares during the preceding two financial years and;
• Not be in default to institution / banks in the payment of their dues.
• Have positive net worth during the last three years.

Nature & Mode of Assistance: Assistance cover upto 85% of the cost of capital goods/equipment to be acquired, subject to an overall ceiling of Rs.100 lakhs. The borrower concern will have to meet the minimum of 15% of the cost of the equipment and also the allied expenditure out of own resource which shall be brought in as upfront before release of loan. The assistance will be a minimum of Rs.5 lakhs.

"Financial Information (Subsidy, low interest rate, etc.)": The rate of interest would be based on the risk rating with minimum rate of interest at 12%. Processing Fees shall be paid at the time of sanction as per Corporation's norms, the current processing fees being 1% of the laon sanctioned amount. The repayment period of principal will range from 3 years to 5 years including a holiday period ranging from 3 months to 12 months. The borrower may be permitted to repay the interest and principal on a monthly basis [EMIs].

"Other Assistance (Procurement of machinery, Technology /Marketing, International Cooperation, etc.)":

How to apply: http://www.afconline.gov.in/document/g_app.pdf

Whom to Contact: Vittiya Bhavan
M.S. Road,Paltanbazar, Guwahati-Assam-781 008 Contact Details:
Phone : 0361-2739839,2633658
Fax: 0361-2521859.
Email: afcghy@gmail.com / afc_ho@yahoo.com