GOVERNMENT OF TAMIL NADU
FINANCE (LOANS AND ADVANCES CELL) DEPARTMENT
G.O.No.213, Dated 23rd July 2015
(Manmatha, Aadi 7 , Thiruvalluvar Aandu 2046)
INTEREST – Rate of interest on Loans and Advances sanctioned by the State Government – Interest rates for the year 2015-2016 – Orders Issued.
READ – the following paper:
G.O. Ms. No.186, Finance (Loans and Advances Cell) Department, dated 8.7.2014.
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Government directs that the rate of interest on various kinds of loans and advances by the State Government during the year 2015-16 shall be as shown below:
|Sl. No.||Class of Loan / Advance||Percent per annum for the year 2015-2016|
|1.||Loans to State owned Industrial / Commercial Undertakings / Corporations, etc. including Financial Corporations and all other Local Bodies and Municipal / Corporations:|
|(a) Plan Schemes for development purposes||11.50|
|(b) Other Schemes||11.50|
|(c) For capital formation and development purposes||11.50|
|(d) For Working Capital Support||13.50|
|(e) For Ways & Means advances, advances including loans to cover cash deficits||13.50|
|(f) For Ways & Means advance to Tamil Nadu Civil Supplies Corporation Limited for Public Distribution System||10.00|
|2.||Loans to Co-operative Institutions and Co-operative Banks like Land Development Bank||10.00|
|3.||Loans to Government Servants|
|(i) House Building Advance:||5.50|
|(a) For loans upto Rs.50,000/-||7.00|
|(b) For loans from Rs.50,001/- to 1,50,000/-||9.00|
|(c) For loans from Rs.1,50,001/- to 5,00,000/-||10.00|
|(d) Above Rs.5,00,000/-|
|(ii) Conveyance Advance:||11.50|
|(a) For purchase of Motor car||9.00|
|(b) For purchase of Motor Cycle / Scooter||5.50|
|(c) For purchase of Bi-cycle|
|(iii) Other Personal Loans to Government Servants:||10.00|
|(a) For purchase of Computer||10.00|
|Other Items :|
|Loans which are not covered in any specific category mentioned above||12.75|
|5.||Value of Seized Stock under Essential Commodities Act 1995||6.50|
2. The above rates will be applicable for all loans and advances being sanctioned during the year 2015-2016 and will have validity till the next revision is done by the State Government.
3. The rates of interest are general and will not apply to cases where reduced rates of interest have been sanctioned specially by the Government or where loans have been sanctioned by the Government free of interest. The Government may also sanction Ways and Means advances at special rates of interest taking into account, the cost of borrowing of the Government.
4. The mobilization advances to Contractors for World Bank assisted Projects wherein the standard bidding documents provide for exemption from paying of interest are however exempted from payment of interest.
5. The penal interest on all overdue instalments of principal and interest will be at 2.50 per cent more than the normal rates of interest per annum.
6. Except in the case of loans to Government Servants, interest in all cases unless specifically indicated otherwise should be paid every Calendar quarter on the outstanding balance.
7. Even at the stage of sanction of loan, in the sanction order, the period of repayment, rate of interest and schedule of repayment with dates shall be indicated. In case, it is a permanent loan, a specific mention of this fact should be made in the sanction order itself.
(BY ORDER OF THE GOVERNOR)
PRINCIPAL SECRETARY TO GOVERNMENT