The rate of interest and rules for the year 2012-2013 for Loans and Advances of the State Govt has been fixed by West Bengal Government vide letter dated 2211-F.B. dated 25 March 2013 for seven types of loans as mentioned therein.
The rules are as under:
(a) For timely payment, no rebate will be given.
(b) The recovery is to be affected from the completion of first year from the date of drawal of loan, if the date of payment is not extended. The maximum time limit for repayment should not exceed 10 years. As regards, working capital, the repayment should be completed within 2 to 3 years and should not exceed 5 years.
(c) Interest should be paid every year on the balance principal. It can not be carried forward except for unavoidable reasons. The interest will be reduced by 1% if the loan refund period is less than 5 years. The interest on loan from outside will be the same at which it is received. The period of repyament should not exceed beyond 10 years.
(d) In case of default, the additional rate of interest over and above the normal interest should not be less than 2.50%.
2. The rate fixed for 2011-2012 for individual will continue. The special rates fixed earlier also will not change.
3. This will also not affect the loans given by various housing schemes.
4. The rules on rate of interest and loans and advances of the State Government will not apply to Closed and Sick Industires. They will settle it through their Admn. Departments in consultation with this Department.
5. The flat rate for capital expenditure for the year 2012-2013 has been fixed as 6% per annum.
6. The repayment of loan and interest should be watched by the Departments. The defaulted dues should be adjusted at the time of sanction of fresh loan.
7. Individual case for sanction out of rules not covered under this order and postponement of commencement of repayment of principal/interest only need to be submitted to Finance (Budget) Department.
8. As regards, the rate of interest for loans and advances of Government servants, separate Government orders are being issued.