NORKA has launched a rehabilitation package called NORKA DEPARTMENT PROJECT FOR RETURN EMIGRANTS [NDPREM] under which financial assistance is granted to emigrants who have entrepreneurial interests in setting up their own business.
Main feature of this scheme is the subsidy provided for capital and interest rate.
Eligibility criteria to get loan under NDPREM
Emigrant shall have worked abroad for at least two years
Fields or sector for which financial assistance is granted
Agriculture (Poultry, Dairy, Goat farming, Bee keeping, floriculture, Aqua culture etc.)
Trading (General trading and shops)
Services (Repair shop, restaurants, taxi services, homestay etc.)
Small and medium scale enterprises (flour mills, saloons etc.)
Subsidy under NDPREM
Subsidy will be available after the lock in period of 4 years
- 15% of the loan amount as capital subsidy
- 3% of interest for the first four year as interest subsidy
In order to avail the subsidy, following conditions should be satisfied
- There should not be any default in making payment of monthly interest
- There should not be any fraud or mis-utilisation of funds
Documents required for loan under NDPREM
- Photograph of the applicant
- Copy of passport with pages to prove the period of employment abroad
- Project report of the proposed business
Contents of project report under NDPREM
A project report basically contains information relating to following aspects
- Introduction (description about the business)
- Market Potential (a brief information about targeted market, customers, demand for the product or service etc.
- Basis and Presumptions/ Assumptions (Project report presents projected data such as expected sales, expenses, purchases etc.) In this area the assumptions and the basic facts used to prepare the project should be specified. For example – Rent is assumed to be 10000 p.m. or expenses are expected to be increased by 10% per annum.
- Technical aspects (Operational procedure has to be described under this heading. For example, if the business is for manufacturing a product, then how the raw materials will be processed, the steps to be taken to convert the raw material into finished goods etc.)
- Financial aspects (Financial aspects are the most important topic in a project report. Details such as Total Project Cost, Machinery and Equipment’s, Furniture and fixtures, working capital required, expenses, purchases, sales etc. shall be provided under this head)
- Details of suppliers (For manufactures and traders, details of raw material suppliers should be provided, if available)
For more information and to register for financial assistance under NDPREM visit http://registernorka.net/ndprem/
UPDATE: It was noticed that, some banks are demanding security for sanctioning loan under NDPREM scheme. You are kindly requested to plan accordingly.
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