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Under the Schemes, small scale units are given equity type seed capital assistance to meet the margin money requirements of small units. Servicing is charged at a nominal rate of 1%. The NEFS was setup with a corpus of Rs. 10 crores and is administered by SIDBI.

- The scope of the scheme includes projects with outlays upto Rs. 10 Lakhs and the quantum of assistance available is upto Rs. 1.5 Lakhs.

Highlights Of National Equity Fund Scheme Of Sidbi

In August 1987 Government introduced National Equity Fund Scheme in the Industrial Development Bank of India (IDBI) and subsequently IDBI's role relating to small scale industries was transferred to newly created organisation, Small Industries Development Bank of India (April, 1990) to provide equity support to Small Scale Entrepreneurs for setting up of new units and for rehabilitation of potentially viable sick units.

- The scheme provides financial assistance to SSI units in the form of long term equity type seed capital upto Rs. 1.5 lakh with a project cost not exceeding Rs. 10 lakhs.

- Financial Assistance is provided at a nominal service charge of one percent per annum.