NEDFI Micro Finance scheme was introduced with the aim to reach out to the entrepreneurs in the far-flung areas with the intervention of microfinance institutions. It has only one branch in each state as a result of which it is unfeasible to reach out to t5uthe grass-root level borrowers. Microfinance institutions have multiple branches in different local areas and thus play the role of mediator to reach out to the backward masses.

Implementation

The scheme is disbursed in two way system. In the first phase, NEDFI invests in the capital of the Micro Finance Institutions and progresses towards being the shareholders of these MFIs. In the second phase, we provide the funds so as to lend them to the borrowers.

Progress

Through this procedure, Rs.200-300cr is disbursed every year. An additional charge of 5-6% is imposed by the microfinance institutions on the borrowers. NEDFI has facilitated indirect employment to about 7.97 lakh women under this scheme.