Application and Release of Interest Subvention

Application for Interest subvention

1. The eligible PA 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 2022 for interest subvention.
3. The PA shall submit sanction letter issued by the Bank/FI of Working Capital Loan 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 PA.
3. NDDB shall release eligible interest subvention on back ended basis every month to the FI for onward transfer to the working capital loan account of the PA.
4. For prompt and timely repayment, additional 2% per annum interest subvention will be payable at the end of the loan repayment period; The working capital loan account where all of the interest payment and/or installments of principal were paid through customer induced payments within 30 days of the due date during the tenure of the loan would be considered as an account having prompt payment.