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Saturday, July 12, 2014

INTEREST-Rate if interest on Loans and Advances sanctioned by the State Government – Interest rates for the year 2014-2015 – Orders – Issued

GOVERNMENT OF TAMIL NADU
2014                                                                                                                          Manuscript Series

FINANCE (LOANS AND ADVANCES CELL) DEPARTMENT
G.O.No.186, Dated 8th July 2014
(Jaya, Aani 24, Thiruvalluvar Aandu 2045)


INTEREST-Rate if interest on Loans and Advances sanctioned by the State Government – Interest rates for the year 2014-2015 – Orders – Issued.

Read: the following paper:

G.O.Ms.No.148, Finance (Loans and Advances Cell) Department, dated 4.5.2013.


ORDER:

Government  direct that the rate of interest on various kinds of loans and advances by the State Government during the year2014-15 shall be as shown below:


Sl.No
Class of Loan/Advance
Percent per annum for the year 2014-2015
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.
(i)
House Building Advance:



(a)    For Loans upto  Rs. 50,000/-
5.50


(b)   For loans from Rs.50,001/- - to 1,50,000/-
7.00


(c)    For loans from Rs.1,50,001/- to 5,00,000/-
9.00


(d)   Above Rs.5,00,000
10.00

(ii)
Conveyance Advance:



(a)    For purchase of Motor car
11.50


(b)   For Purchase of Motor Cycle /Scooter
9.00


(c)    For purchase of Bi-Cycle
5.50

(iii)
Other Personal Loans to Government Servants:



(a)    For purchase of Computer
10.00


(b)   Others
10.00
4.
 Other  items:


Loans which are not covered in any specific category mentioned above
12.50
5.
Value of seized stock under Essential Commodities Act, 1955
6.50
6.
Penal Interest
2.50

2. The above rates will be applicable for all loans and advances being sanctioned during the year 2014-2015 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 that 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


Source: Original Order Click here

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