Terms & Conditions

  • Funding Pattern - The funding support under the scheme will be in the form of interest bearing loan.
    • Loan Component – 80% (maximum)
    • End Borrower’s Contribution - 20% (minimum)
  • Tenure of loan & moratorium period - 
    • Tenure of loan would be a maximum of 10 Years, including moratorium period of a maximum 2 years on repayment of principal only (moratorium period will be for the project and not for each release).
  • Interest Rate – 
    • In case the funding is provided by NDDB, the rate of interest will be linked to SBI’s 3 years MCLR. The present effective rate of interest for End Borrowers is presently 5.3% per annum.
    • In case of NABARD funding routed through NDDB, the rate of interest to End Borrowers would be interest rate charged by NABARD + 0.50% per annum and will be effective throughout the repayment period. 
  • Commitment Charges -
    • If cumulative disbursement at the end of a quarter is less than 90% of the pre-approved cumulative draw-down schedule, the End Borrower will have to pay a commitment charge of 2% per annum (or at such rate as may be conveyed by NDDB from time to time) with applicable taxes on the cumulative difference between the projected drawdown schedule and actual disbursement. It will be levied from the beginning of the next quarter till the differential amount is withdrawn (Please note that, imprest advance availed by the End Borrower (if any) from NDDB shall also be part of the drawdown schedule).
  • Security –
    • The End Borrower shall have to provide State Government Guarantee or security in terms of mortgage / hypothecation of assets for repayment of loan under DIDF.
    • In case sufficient security is available and the State Government Guarantee is not required, the proposals may be directly submitted to NDDB.
    • The proposals requiring State Government Guarantee may be submitted through State Project Screening and Review Committee (SPSRC). SPSRC shall have to secure the commitment letter from State Government for providing guarantee on behalf of the EEB.
    • The eligible End Borrower will have to create Debt Service Reserve Account (DSRA) immediately after the fund is disbursed to the eligible End Borrower. The eligible End Borrower shall maintain DSRA covering minimum of 1 quarter interest and principal instalments.
    • In case of funding from NABARD, the End Borrower shall provide its consent for assignment, in favour of NABARD, of all securities taken by NDDB for securing its loan, including Government Guarantee. In case of reassignment, cost involved shall be recovered from EEB.
  • Payment 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.