In a statement NEDFi stated, “Since its inception NEDFi has followed Prime Lending Based (PLR) interest rate structure, with review of rates and its spread from time to time in the past depending on the prevailing interest rate in the market. In view of the recent downward revision in the interest rates of most of the banks in the country and adoption of external benchmark linked interest rates by banks, NEDFi has revised its interest rate structure with an external benchmark wherein the floor rate shall be pegged with 1–year MCLR of State Bank of India”
NEDFi added that the new Interest Rate Structure will be called External Benchmark Rate (EBR) and henceforth, all new loans above Rs.100 lakh sanctioned by the Corporation will be linked to EBR. Presently the EBR, linked with SBI’s 1-year MCLR is 7% and a spread of 0 to 6% shall be charged over and above the EBR depending on the credit rating as well as other viability parameters of the project. The EBR shall be revised every month and the same will be notified on the website of NEDFi on the last date of the month for the following month.
On its 25th Incorporation Day to mark its Silver Jubilee Celebration, B.P. Muktieh, CMD, NEDFi, launched the new interest rate structure of the Corporation on August 9.
According to NEDFi the Corporation has several schemes for small loans of size up to Rs one lakh and microfinance loan to MFIs where concessional interest rates are being charged to the customers and as such the EBR structure are not applicable on these loans which shall be governed as per the prevailing schemes. The Corporation has provided loans to over 6800 projects.