Rate of Interest on Loans and Advances to Tamilnadu State Govt Employees for the year 2015-16
Rate of Interest on Loans and Advances to Tamilnadu State Govt Employees for the year 2015-16 – Interest for House Building Advance, Conveyance Advance and Personal Loan
Government of Tamilnadu has issued a GO prescribing the  Rate  of  interest  on  Loans  and  Advances  sanctioned   by  the  State Government  – Interest rates for the year 2015-2016
Manuscript Series
GOVERNMENTÂ OF TAMIL Â NADU
2015
FINANCE Â (LOANS Â AND ADVANCES Â CELL) Â 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)Â Â 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: | ||
(a) Â For loans upto Rs.50,000/- | Â 5.50 | |
(b) Â For loans from Rs.50,001/-Â Â to 1,50,000/- | Â 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) Â Others | 10.00 | |
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 | Â 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 Â SECRETARY Â TO GOVERNMENT
Download Govt of Tamilnadu G.O.No.213 dated 23.07.2015