Tuesday, 20 March 2012

Revised interest rate for Loan to Government Employees

Rate of interest for loans and advances to government employees revised with effect from 01st April, 2011. The lending rate is revised through an office memorandum No.  F.No.5 (3)-B (PD)/2011 issued on 19th March, 2012. Category of borrower, type of loan and revised interest rate per year shows below:-

1. State Governments:

(i) Ways and Means Advances (Recoverable within the year)   - 9.00%

(ii) Other Loans - 9.50%

2. Union Territory Governments (with Legislature):

(i) Loans upto 1 year   - 9.00%

(ii) Other Loans    - 9.50%

3. Industrial and Commercial Undertakings in the Public Sector and Cooperatives.

(i) Investment loans  - 11.50 %

(ii) Working Capital loans and loans to meet Cash losses   - 13.50%

(iii) Loans for implementation of VRS in sick PSUs   - 11.50%

4. Financial institutions in the Public Sector, Port Trusts, KVIC, NHAI, Municipal Corporation of Delhi, Commodity Boards, Social Service Institutions, Individuals, etc.

(i) Rural Electrification Corporation:

(a) For Minimum Needs Programme (M.N.P.)   - 10.00%

(b) Others  - 10.00%

(ii)  National Bank for Agriculture and Rural Development (NABARD) and National Cooperative Development Corporation (NCDC)   - 10.00%

(iii) National Highways Authority of India (NHAI) and Port Trusts    - 10.00%

(iv) Others  - 11.50%

These interest rates are with the assumption of timely payment of loan. There is no any additional rebate allowed for those who pay back the loan in time.

Repayment period of Loans & Advances

Repayment period should be fixed and also should be minimum possible duration. No loan will be granted for more than 10 years in normal condition. The prior permission of the budget division of the department should be necessary for a repayment period more than 10 years.

Repayment of loan should commence from the first anniversary date of the loan or expiry period of moratorium.

Get more details and application form 

Revised interest rate for Loan to Government Employees

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1 comment :

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