Government of India
Ministry of Finance
Department of Economic Affairs

New Delhi, the 12th November, 2013


Subject:- Loans and Advances by the Central Government – Interest rates and other terms and conditions.
Reference this Ministry’s Office Memorandum F.No.5(3)-B(PD)2012 dated 7th January, 2013 on the captioned subject. 2. The lending rates prescribed in the aforesaid Office Memorandum
have been reviewed. The revised rates of interest applicable from 1st April, 2013 are given in the Table below:—
Category of borrower & type of loan Interest rate per cent per annum
1. State Governments:
(i) Ways and Means Advances (Recoverable within the year) 8.25
(ii) Other Loans 8.75
2. Union Territory Governments (with Legislature):
(i) Loans upto 1 year 8.25
(ii) Other Loans 8.75
3. Industrial and Commercial Undertakings in the Public Sector and Cooperatives.
(i) Investment loans 11.50
(ii) Working Capital loans and loans to meet Cash losses 13.50
(iii) Loans for implemantation of VRS in sick PSUs 11.50
4. Financial institutions in the Public Sector, Port Trusts, KVIC, NHAI, Municipal Corporation of Delhi,Commodity Boards, Social Service Institutions, Individuals, etc.
(i) Rural Electrification Corporation:
(a) For Minimum Needs Programme (M.N.P.) 10.00
(b) Others 10.00
(ii) National Bank for Agriculture and Rural Development (NABARD) and National Cooperative Development Corporation (NCDC) 10.00
(iii) National Highways Authority of India (NHAI) and Port Trusts 10:00
(iv) Others 11:50

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