Rate of Interest on Loans and Advances to Tamilnadu State Govt Employees for the year 2015-16

GOVERNMENT OF TAMIL NADU

2015

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.

* * * * *

ORDER:

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
(b)  Others  5.50
4.

 

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
6. Penal  Interest  2.50

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)

K. SHANMUGAM
PRINCIPAL SECRETARY TO GOVERNMENT

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