Sub: Revision of Interest Rates and other terms & conditions on loans
assistance given by NCR Planning Board.
The Chairman, NCR Planning Board, Minister for Urban Development, has approved
the revision of interest rates and other terms and conditions for loan
assistance provided by NCR Planning Board to Participating State Governments of
the National Capital Region and their Implementing Agencies for various types
of projects have been revised as under :-
A. Performance Linked Incentive Scheme : Incentive up to 0.50% in the form of
reduction in interest rates shall be available based on the performance.,
(NCRPB reserves the right revise the interest rates as and when necessary).
The revised rates of interest shall be applicable on all new releases of loan
instalments both for ongoing as well as for new projects.
* Performance linked incentive up to 0.50% shall be available as follows:
-
Incentive of 0.10% in the form of reduction in interest rate for regular and
timely drawal of loan instalment as per the loan schedule by the State Govt. /
Implementing Agencies as given in the loan agreement.
-
Incentive of 0.15% in the form of reduction in interest rate on total loan
amount on timely completion of project as per the time schedule for the
project. Incentive shall be available for all new releases.
-
Incentive of 0.25% reduction in interest rate for timely payment of loan
instalment (principal & interest), strictly as per the payment schedule. The
payment should be made on or before its due date for availing this incentive.
Any delay in repayment / payment of interest shall render the borrowing agency
loanee, ineligible for this rebate. However, when the due date of the repayment
of any instalment of principal or interest falls on a Saturday, Sunday or a
public holiday, the payment made on the next working day following Saturday /
Sunday or a public holidays, shall be regarded as payment on the due date and
no interest / penal interest shall be charged for the day or days by which the
recovery is postponed.
B.
Deferment charges of 0.50% and commitment charge of 1% being charged by the
Board have been abolished. Penal interest of 2.75 % over and above the normal
rate of interest on overdue amount for delay in payment will however continue
to be levied.
C.
Resetting of interest rates for outstanding loan amount: The borrower can seek
resetting of interest rates on outstanding loan (outstanding at the time of
issue of this order) on payment of one time upfront fee equal to 25% of the
difference of the original rate of interest and the existing rate (revised
rates) of interest of the Board multiplied by the outstanding loan amount. The
revised rate of interest would be as under :-
-
Infrastructure - 7.0%
-
Residential - 7.0%
-
Industrial - 7.0%
-
Commercial - 8.0%
Incentive of 0.25% in the form of reduction in interest rate shall be provided
on all outstanding loan subject to timely repayment of principal and the
interest amount strictly as per the payment schedule. Once the proposal for
resetting of interest rates is received from the borrowing agency, the
effective date for operation of the reset rate of interest shall be with effect
from the date of issue of such order to this effect.
D.
Prepayment charges @ 1.00 % of the outstanding loan amount (principal amount
being prepaid) shall continue to be levied. Under normal circumstances the
Board shall not accept prepayment more than 25% of the loan component released
(till the date of proposed prepayment) for the particular projects. Prepayment
shall not be accepted during the moratorium period of the project. However, for
cases with litigation or where the project is completed before the schedule and
the borrower is getting huge cash inflow etc., it will be at the discretion of
the PSMG to accept prepayment more than 25% on the case to case basis.
E.
Tenure of loan : The loan for infrastructure, industrial and residential
projects shall be disbursed for a maximum tenure of 10 years and for commercial
projects for 7 years including moratorium period (maximum up to 2 years for
repayment of principal amount). However, where longer period of repayment is
sought, prior approval of the Project Sanctioning & Monitoring Group (PSMG) of
the Board will be necessary on case to case basis.
F.
The above revised rates will come into force prospectively.
The State governments / implementing agencies may prepare proposals for loan
assistance from NCR Planning Board in accordance with the aforesaid interest
rates and loaning policy and forward them to the Board.
|
