Frequently asked questions about loan assistance scheme

Who is eligible for borrowing the money?
State Governments, Union Territory Administration/ Governments or the local authority, Urban Development Authorities, Housing Boards or other authorities involved in implementation of Sub-regional Plans or developing a Counter – magnet area. A comprehensive list can be found here.

What kinds of schemes are listed as priority infrastructure?
Priority infrastructure includes schemes related to construction and/or augmentation of water supply, sewerage, solid waste management infrastructure, schemes related to environmental protection and preservation, housing for economically weaker sections and low income groups, scheme for the poor in social and physical infrastructure.

Which areas will get priority?
Scheme located in priority towns and sub-regional growth centers are prioritized over schemes in other areas of the region. This does not, however mean that projects in other areas of the National Capital Region shall not be funded - the concerned State Governments and/or implementing agencies are encouraged to submit proposals through their respective NCR Cells.

What is the maximum limit for loan assistance?
Financial assistance in the form of interest bearing loan up to 75% of the project cost can be given to any particular project, depending on merit and cost.

Can loan be diverted to other approved scheme?
No. Any sum of money released as part of the loan assistance scheme of the NCRPB CANNOT be diverted to any other scheme - whether approved or not by the Board. If the scheme for which the money was drawn is cancelled, countermanded or shelved for any reason, the amount borrowed (sum released till date for the concerned project) must be refunded back to the Board.

What are the alternative guarantees accepted by the Board?
As of today, the Board accepts bank guarantee, corporate guarantee, escrow account mechanism and negative lien as alternative guarantees.