Application and Release of Interest Subvention

Application for Interest subvention

  1. The eligible Participating Agency shall submit application to NDDB in a prescribed format for availing interest subvention within 45 days from the date of sanction.

  2. In case of loans sanctioned prior to date of launch of the scheme, un-repaid part from 1st April 2020 will be eligible for interest subvention.

  3. The Participating Agency shall submit sanction letter issued by the Bank/Financing Institution and copy of loan agreement along with the application.

  4. NDDB, after verifying from the concerned Bank/FI, will approve the proposal for interest subvention.

 

Release of Interest Subvention

  1. For claiming interest subvention, the PA shall submit “Request for release of interest subvention” to NDDB every month in a prescribed format, enclosing the Interest Certificate from the Bank/ Financing Institution, relevant Bank Statement and Stock Statement of the conserved commodities.

  2. The outstanding loan will be reconciled by the Bank/Financing Institution with the stock of eligible conserved commodities available with the Participating Agency.

  3. NDDB shall release interest subvention on back ended basis every month to the Financing Institution for onward transfer to the working capital loan account of the Participating Agency.