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.

End Borrower will be free to pay interest/principal relating to quarter anytime during the quarter before the due date. However, if End Borrower pays interest/principal instalments for subsequent quarter(s), it 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 advance repayment of loan subject to the condition that the End Borrower gives four 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 days, the repayment shall be deemed to have been made after four days (excluding Saturdays, Sundays and Holidays) from the actual date of realization of payment and interest will be levied accordingly. However, irrespective of four 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.