NEDFi celebrates Silver Jubilee, CMD announces new interest rate structure

Guwahati, Aug 11, 2020, ENEWSTIME Desk

North Eastern Development Finance Corporation Ltd (NEDFi). a premier financial institution in the North-Eastern Region with its head office at Dispur. Guwahati and branch offices all across North-Eastern Region celebrated its Silver Jubilee on August 9, 2020. NEDFi has completed an eventful twenty-five years since its establishment in 1995.

On its 25th Incorporation Day to mark Silver Jubilee celebration, CMD of NEDFi BP Muktieh launched the new interest rate structure External Benchmark Rate (EBR)  

Over the years, the Corporation has provided loans to over 6800. projects and taken up several development initiatives through its CSR activities in eight slates of North-East. NFDFi has become a household name in the region through its varied activities and active engagement with thousands of entrepreneurs in the region.

NEDFiSince its inception NEDFi followed Prime Lending Based (PLB) interest rate structure with review of rates and its spread from time to time in the past depending on the prevailing interest rate in the market.

In view of the recent downward revision in the interest rates of most of the banks in the country and adoption of external benchmark linked interest rates by banks, NEDFi has revised its interest rate structure with an external benchmark wherein the floor rate shall be pegged with I -year MCLR of State Bank of India. The new Interest Rate Structure will be called External Benchmark Rate (EBR) and henceforth loans above Rs 100 lakh sanctioned by the Corporation will be linked to EBR. Presently, the EBR linked with SBI’s 1-year MCLR is 7 per cent and spread of 0 to 6 per cent shall be charged over and above the EBR depending on the credit rating as well as other viability parameters of the project. The EBR shall be revised every month and the same will be notified on NEDFi website on the last date of the month for the following month. 

Besides, the Corporation has several schemes for small loans upto Rs 100 lakh and microfinance loan to MFIs where concessional interest rates are being charged to the customers and as such the EBR structure is not applicable on these loans which shall be governed as per the prevailing schemes.