Repayment of Loan

Repayment of Interest - Interest will be paid by the End Borrower on monthly basis. There will be no moratorium period on payment of interest. The payment of interest will be from 1st day of the subsequent month of release of loan.

Repayment of Principal - Principal will be paid on monthly basis after completion of moratorium period.

Pre-payment Charges for early repayment of loan - NDDB may accept purely at its discretion, advance repayment of loan before due date.

The due date for payment of interest/principal instalments falls on 1st day of every month. If due date of instalment falls on Saturday, Sunday and/or Holiday(s) of NDDB Head Office, the payment is due on the preceding working day. The End Borrower is free to pay interest/ principal instalment during the month before the due date i.e. 1st day of the following month or its preceding working day as the case may be. However, credit for all such advance payments will be given only on realisation or on the relevant due-date, whichever is later.

If the End Borrower pays principal instalments for subsequent month(s), it shall be termed as pre-payment and the End Borrower shall be liable to pay pre-payment charge @ 2% per annum (or at such rate as may be conveyed by NDDB from time to time) on the prepaid amount with applicable taxes. NDDB may accept the pre-payment of loan subject to the condition that the End Borrower gives four working days clear notice (excluding Saturdays, Sundays and Holidays) to NDDB for such advance payment, provided that if the End Borrower fails to give aforesaid advance notice of four working days, the repayment shall be deemed to have been made after four working days (excluding Saturdays, Sundays and Holidays) from the actual date of realisation of payment and interest will be levied accordingly. However, irrespective of four working days’ notice given to NDDB by the End Borrower, it shall be liable to pay pre-payment charge on the prepaid amount.

NDDB at its discretion may waive the prepayment charges in following circumstances:

a. If NDDB is completely satisfied that the End Borrower has pre-paid the entire outstanding out of its genuine business revenue.

b. Where End Borrower defaults and loan account is closed out of the proceeds received by invoking state government guarantee and/or out of proceeds received by liquidating the secured assets of the End Borrower

Default in repayment - In the event of failure to repay the loan instalments on the due date by the End Borrower, the amount in default shall attract additional interest @ 3% per annum over and above the normal rate of interest from the scheduled date of repayment till the actual date of repayment.