GRADED INTEREST REBATE SCHEME
FOR FRESH TERM LOAN WITH INTEREST RATE
The
new borrowers whose account is classified as Standard Account on the close of
the financial year shall be eligible for benefit under Graded Interest Rebate
System (GIRS) over and above the rebate for timely payment. The applicable
interest rate will be reduced by 0.25%, 0.25% and 0.50% in II, III and IV years
respectively as per details in the illustrative Table-I.
The
performance of the loan account shall be observed for minimum of one year
therefore, the benefit under the scheme will commence from the next year. The
interest rebate under this scheme shall be admissible only in case the account
is classified as Standard Asset, as on the close of financial year, during
entire period of the loan repayment, and any slippage in categorization will lead
to withdrawal of the interest rate reduction allowed and reversion to the
original documented rate of interest. The cases covered under "Incentive
Scheme for Good Borrowers" will not be eligible under this scheme.
Table-I Rate/Rebate
in percent
|
Year (quarterly Starting April 15th) |
Prevailing (documented) interest rate |
Rebate for timely payment |
Proposed additional interest rebate |
|
I |
13.50 |
As
per prevailing policy - 2% wef 16.07.2009. |
Nil |
|
II |
13.50 |
As per prevailing policy -
2% wef 16.07.2009. |
0.25 |
|
III |
13.50 |
As per prevailing policy -
2% wef 16.07.2009. |
0.25 |
|
IV |
13.50 |
As per prevailing policy -
2% wef 16.07.2009. |
0.50 |