Equipment Finance Scheme - NEDFi

The Equipment Finance Scheme is a financing support provided by North Eastern Development Finance Corporation Ltd. under the aegis of the Central Government, targeted at acquiring specific plant or machinery or equipment. It is intended for enterprises in the NorthEastern States of India to modernise or strengthen their operations. You as an MSME can benefit if your unit is located in those states and meets the criteria.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process for the Scheme

Key Features

Coverage of costs for equipment acquisition: Under the scheme, you can get financial assistance for the cost of new equipment including taxes/duties, freight/transportation, installation charges. For example, if you plan to buy a new machine, a significant portion of cost will be supported by this scheme.
Minimum & maximum assistance limits: The scheme sets a minimum assistance size of about ₹ 25 lakh and for many cases a maximum around ₹ 10 crore (in the case of NEDFi’s equipment finance scheme) depending on viability. This helps define the scale of investment you as MSME need to plan.
Eligibility filters: unit track-record requirement: Only financially sound, profit-making companies with a good credit record are eligible. For example, the unit should have been operational for five years and profitable for the previous three years. This ensures viability and reduces risk.
Exclusions: second-hand equipment, in-house fabrications: The scheme excludes purchases of used machinery or machinery made in-house by the unit itself. So your equipment must be new, purchased from a recognised supplier.
Repayment tenure & debt-equity norms: A repayment period is set, and debt-equity or margin norms apply (promoter must bring in a share; debt should not exceed a certain multiple). For example, promoter contribution might be minimum 30% of equipment cost.

Financial Assistance

Component	Assistance Provided	Detailed Explanation & Example
Equipment acquisition cost	Up to 70% of cost of equipment for eligible companies.	Example: Suppose your MSME in a North Eastern State wants to buy new equipment worth ₹ 1 crore . Under this scheme, you might get up to 70% i.e., ₹ 70 lakh as loan/finance from NEDFi; you as promoter must bring in remaining ₹ 30 lakh.
Minimum & Maximum assistance	Minimum ₹ 25 lakh; Maximum about ₹ 10 crore under the scheme.	Example: If your equipment cost is ₹ 50 lakh, you meet the minimum assistance threshold. If your cost is ₹ 12 crore, you may be outside the upper limit and need to explore larger project finance instead.
Promoter’s contribution	At least 30% of cost should be borne by the unit in many cases.	Example: For equipment cost ₹ 1 crore, promoter must contribute minimum ₹ 30 lakh and the scheme finances up to ₹ 70 lakh.
Repayment tenure	Up to 6 years including moratorium .	Example: If your equipment is installed and starts operation, loan repayment schedule may be set for 6 years including up to maybe 6-12 months moratorium before full repayments start.

Eligibility Criteria

Who can apply:

The proposed unit should be located in any of the eight North-Eastern States of India.
The applicant company must be financially sound, profit-making, with a good credit record.
The company should have been in operation for at least five years and must have earned profit during the preceding three years.
Equipment to be acquired must be new and not in-house fabricated.
Minimum assistance amount above ₹ 25 lakh.

Who cannot apply:

Acquisition of second-hand machinery or equipment is not eligible under the scheme
In-house fabricated equipment is excluded.
Typically grass-root new units may not qualify under this equipment finance scheme (observed for NEDFi’s terms).

Documents Required

KYC of promoters
Business registration / Company incorporation certificate / Partnership deed etc
GST registration / GST returns
Audited financial statements for last 3-5 years
Equipment quote
Business plan for equipment usage / expected revenue generation
Bank statements, credit history, CIBIL score of promoters/company
Board resolution approving loan/equipment purchase
Any collateral/security documents if required by NEDFi
Application form duly filled and signed

Application Process for the Scheme

Option 1: Apply with Bullit

Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations.
Recommended for: Lean teams. Designed to save you time and effort. Access expert help from start to finish.

Option 2: Apply Directly through NEDFi Offices

Visit the nearest NEDFi branch in the North Eastern Region.
Submit application form along with business profile and project details.
Provide quotations for equipment to be purchased.
NEDFi conducts appraisal and assesses creditworthiness.
After loan approval, execute security and loan documents.
Equipment loan is disbursed directly to the supplier or as per norms.

Option 3: Apply via the NEDFi Online Portal

Visit the official NEDFi website and navigate to the loan application section.
Create login and fill out the Equipment Finance Scheme form.
Upload KYC, business documents, and equipment quotations.
Track application status and respond to NEDFi queries.
On approval, complete documentation and receive disbursement.