WCTL for Contract Finance

The WCTL for Contract Finance scheme is administered by the North Eastern Development Finance Corporation Ltd. under the aegis of the Government of India. It was launched to assist contractor firms or companies undertaking contract work execution by providing working capital term-loan assistance in the form of “gap funding”. The scheme helps you as an enterprise to bridge the financial gap in executing contracts, by easing liquidity and meeting contractual obligations.

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

Key Features

Working capital term loan assistance in the form of gap-funding: This means the fund is provided to cover short-term working capital requirements that remain unmet (the “gap”) in contract execution.
Interest rate linked to prime lending rate plus spread based on credit-worthiness: The rate is fixed by reference to the bank’s prime lending rate, with additional spread determined by the borrower’s risk profile, rating, etc.
Additional security required: Since this is working capital term loan for contract execution, the scheme requires extra security to cover the risk.
Eligible applicants: Contractor firms and companies: The scheme specifically targets contractor firms and companies engaged in contract work who face working capital shortfalls during contract execution.

Financial Assistance

Component	Assistance Provided	Detailed Explanation & Example
Working Capital Term Loan	Term-loan covering working capital gap for contract execution	If your contract requires upfront procurement of materials, mobilisation, labour expenses, but your own cash flow or credit limit is insufficient, this loan bridges that gap. For example, if you need ₹ 50 lakhs working capital to execute a contract and have ₹ 30 lakhs from own resources/other credit, the scheme may fund the remaining ₹ 20 lakhs as term loan under this scheme.
Interest Rate	Linked to prime lending rate + spread	If the bank’s prime lending rate is 10% and based on your credit rating spread is +2%, your interest rate would be 12% annually under this scheme.
Security / Collateral	Additional security over and above standard	To safeguard the loan, you may need to provide extra collateral, guarantees or escrow of contract receivables.
Repayment/Term	Structured for contract lifecycle	The repayment schedule will typically be aligned with the contract milestones/receipt of payments from contract authority, giving you breathing space until project receipts start flowing.

Eligibility Criteria

Who can apply:

Contractor firm or company engaged in contract work execution who needs working capital gap funding.
Must apply to NEDFi in the prescribed format for this scheme
Must provide the required security/collateral and meet credit appraisal criteria of NEDFi.

Who cannot apply:

If you are not engaged in contract work you may not qualify.
Standard credit worthiness, viability appraisal, collateral/security conditions of NEDFi apply - meeting eligibility does not guarantee sanction.

Documents Required

Application form in prescribed format from NEDFi.
Company/firm registration documents .
Contract award letter or work order .
Projected cash‐flow schedule relating to the contract work.
Latest financial statements/bank statements of the firm.
Credit history/clearance letter showing no major defaults.
Security documents: details of assets offered, collateral proposals.
Identity proof and address proof of principal promoters/directors.
Any other documents NEDFi requests following its appraisal process.

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: Official NEDFi Route

Download the application form in the prescribed format from NEDFi’s website .
Fill in details: firm/company information, contract work details, cost structure, gap funding requirement, projected cash flows, security offered.
Submit the completed form to: Chairman & Managing Director, NEDFi, NEDFi House, G.S. Road, Dispur, Guwahati – 781006 .
NEDFi will appraise the proposal including risk assessment, creditworthiness, security positioning, and projected cash‐flow link to contract.
Upon sanction, loan agreement executed, funds disbursed, and repayment schedule aligned with contract cash flows.

Option 3: Through Branch/State Facilitation
Engage with your nearest NEDFi branch (North‐East states) for in-person guidance, application assistance, document submission and liaison with NEDFi head office. This route suits enterprises that wish to access local support.