A company or entrepreneur, seeking to establish a new venture or expand an existing enterprise can

approach NEDFi by submitting a Preliminary Project Proposal. After this initial contact and a preliminary
review, NEDFi may proceed by requesting a Detailed Techno-Economic Feasibility Report or Business
Plan to determine whether or not to appraise the project.

The proposal can be submitted to NEDFi's Branch Offices nearest to the project location at the respective
states or to NEDFi's offices in Guwahati.

NEDFi provides a wide variety of financial products and services to its clients and can offer a mix of
financing and advice that is tailored to meet the needs of each project.

Like other private sector investors and commercial lenders, NEDFi:

 Invests in commercially viable projects.

 Seeks profitable returns.
 Prices its Interest rates with the market.

NEDFi Project Cycle

NEDFi offers a wide variety of financial products for industrial, infrastructure, agro-horticulture, fishery and
animal husbandry  projects in the North East of India. The project cycle illustrates the stages a business
idea goes through as it becomes a NEDFi-financed project.

Application for NEDFi Financing

 A company or entrepreneur  seeking to establish a new venture or expand an existing enterprise

can approach NEDFi directly. This is best done by reading how to apply. 
 After these initial contacts and a preliminary review, NEDFi may proceed by requesting a
Business Plan/Project Report to determine whether or not to appraise the project.

Project Appraisal

 Typically, an appraisal team consists of a team of officers with financial, technical expertise and
knowledge of the sector and state in which the project is located..
 The team is responsible for evaluating the technical, financial, economic and environmental
aspects of the project. This process entails visits to the proposed site of the project and extensive
discussions with the project promoters.
 A detailed appraisal memorandum is prepared for submission to the Credit Committee/Directors
as the case may be.

Credit Committee/Directors Committee Review and Approval

 The project is submitted to NEDFi's Credit Committee/Directors Committee, which reviews the
appraisal memorandum for approval/sanction.

Legal Documentation
  The loan after sanction goes for legal documentation with NEDFi legal cell as per terms and
conditions of sanction.

Disbursement of Funds

 Funds are disbursed under the terms of the legal commitment signed by all parties.

Project Supervision

 Once funds have been disbursed, NEDFi monitors its projects closely. It sends field missions to
visit the enterprise. It also requires quarterly progress reports together with information on factors
that might materially affect the enterprise in which it has invested, including annual audited
financial statements.

Loan Application Forms

 Term loan application form

 Application format Micro Finance: - Interested Parties needs to contact Micro Finance Deptt. at
Guwahati or NEDFi's Branch Offices after filling pre-screening format for two financial quarters to
the offices mentioned above for detail application format.

Preparing a Business Plan/Project Report

A Business Plan/Project Report submitted to NEDFi for consideration should include the following
information:

1. Description of the project.

2. Promoters, Management and Technical Assistance:

 Detailed Biodata of promoters including financial information.

 Proposed management arrangements.
 Description of technical arrangements (management, production, marketing, finance etc.).

3. Market and sales:

 Basic market orientation: local, national, regional, or export.

 Projected production volumes, unit prices, sales objectives, and market share of proposed
venture.
 Potential users of products and distribution channels to be used. Present sources of supply for
products.
 Future competition and possibility that market may be satisfied by substitute products.
  Tariff protection or import restrictions affecting products.
 Critical factors that determine market potential.

4. Technical feasibility, manpower, raw material resources, and environment:

 Brief description of manufacturing process.

 Comments on special technical complexities and need for know-how and special skills.
 Possible suppliers of equipment. Ideally three competitive quotations to be enclosed.
 Availability of manpower and of infrastructure facilities (transport and communications, power,
water, etc.).
 Breakdown of projected operating costs by major categories of expenditures.
 Source, cost, and quality of raw material supply and relations with support industries.
 Import restrictions on required raw materials.
 Proposed plant location in relation to suppliers, markets, infrastructure and manpower.
 Proposed plant size in comparison with other known plants.
 Potential environmental issues and how these issues are addressed. 

5. Investment requirements, project financing, and returns:

 Estimate of total project cost, broken down into land, construction of buildings and civil works,
plant and machinery, miscellaneous fixed assets, preliminary and preoperative expenses and
working capital.
 Proposed financial structure of venture, indicating expected sources and terms of equity and debt
financing.
 Type of NEDFi financing (loan, equity, quasi-equity, a combination of  financial products, etc.) and
amount.
 Projected financial statement, information on profitability, and return on investment.
 Critical factors determining profitability.

6. Government support and regulations:

 Project in context of government economic development and investment program.

 Specific government incentives and support available to project.
 Expected contribution of project to economic development.
 Outline of government regulations on exchange controls and conditions of capital entry and
repatriation.

7. Timetable envisaged for project preparation and completion.