What is the main purpose of National Equity Fund (NEF)?
Answers
Explanation:
Scheme
The objective of the national equity scheme is to empower the SSI units and thereby improving their acceptability for team financing by primary lending (PLIs)
Answer:
Explanation:
The National Equity Fund (NEF) was set up by the Small Industries Development Bank of India( SIDBI). This fund provides equity type assistance at five percent service charges to those entrepreneurs who are willing to set up new projects which can be regarded as SSI units.
The main purpose of setting up the national equity scheme is to provide assistance and encouragement to the SSI units for establishing new projects in small scale sector for undertaking expansion, modernisation, up gradation of technology, rehabilitation of feasible sick units in the SSI sectorand diversification by existing small sector .
National equity fund helps the small-scale units in improving their equity base which furthers strengthens their chances of improving their acceptability by primary lending institution for term financing .
Hope this helps.