Interest rates on loans fixed by govt
THE STATE Government has fixed interest rates for the year 2006-07 with effect from April 1, 2006, on various loans provided by it.india Updated: Jan 20, 2007 03:39 IST
THE STATE Government has fixed interest rates for the year 2006-07 with effect from April 1, 2006, on various loans provided by it.
Under the Farmers’ Credit Act and the Land Reforms Act, nine per cent interest will be charged over a four-year loan period, including forest taquabi and other taquabis and 10.50 per cent interest on loans for the period above four years.
Similarly, in the event of natural calamities, nine per cent interest will be charged on relief loans given to the farmers and others. Further, 11.50 per cent interest will be applicable on loans given to the co-operative societies having less than Rs 1 crore capital investment.
Also 11.50 per cent interest will be applicable on investment loans provided to the industrial and commercial undertakings and co-operative societies operating with more than Rs 1 crore capital investment. Moreover, 14.50 per cent interest will be charged on loans provided to maintain the working capital as well as cash shortage. Interest at the rate of 11.50 per cent will be charged on relief loans provided to meet the water crisis in urban areas under the plan and non-plan heads.
Nine per cent interest will be chargeable provided to the victims of riots and dacoits. An interest rate of 12 per cent will be applicable on loans provided to the forest superintendents for purchase of firearms.
Also, 10.50 per cent of interest will be applicable on loans provided for the State plan, centrally sponsored and central regional schemes. Besides, 11.50 per cent interest will be charged on loans sanctioned on adhoc basis for study, other social service institutions and for personal requirements.
It may be mentioned that the interest will be charged on loans of National co-operative development corporation at the same rate on which it is obtained by the State Government. The penal interest will include three percent of the simple interest.