The North Eastern Development Finance Corporation Ltd (NEDFi) has introduced a new Interest Rate Structure. As per NEDFi, since its formation, it has followed Prime Lending Based (PLR) interest rate structure, based on rates and its spread from time to time in the past depending on the succeeding interest rate in the market. NEDFi deals with interest rate structure with an external benchmark wherein the floor rate shall be pegged with one year Marginal Cost of Funds-based Lending Rate (MCLR) of State Bank of India. According to the current downward revision, the interest rates of most of the banks in the country and acquisition of external benchmark linked interest rates by banks under NEDFi.
External Benchmark Rate (EBR) means the new interest rate structure and through this all loans exceeded Rs. 100 lakh approved by NEDFi will be linked to EBR. Currently, it was linked with SBI’s one-year MCLR is 7% and a spread in between 0 to 6% shall be charged over and above the EBR regarding with credit rating on the top of other financial parameters of the project. The EBR will be published on the Corporation’s website on the last date of the following month and it will be shall be checked every month. The move follows the current downward revision in interest rates by most banks in the country and the adoption of external benchmark-linked interest rates.
The new interest structure will be officially introduced by NEDFi CMD B.P. Muktieh. It mentioning that over the years NEDFi has provided loans to more than 6800 projects and also supports development initiatives through its CSR activities in all the eight northeast states of the country and its different activities and active participation with thousands of entrepreneurs has become a household name in the region.
B.P. Muktieh launched the new rate of interest construction of the Corporation on August 9. According to NEDFi the Corporation has introduced several schemes for small loans of dimension as much as Rs 1 lakh and microfinance mortgage to microfinance institutions, the place concessional rates of interest are being charged to the shoppers and as such the EBR construction usually are not important on these kind loans which shall be ruled as per the following schemes. The Corporation has offered loans to over 6800 tasks for overall financial development.
