NCDC Schemes

Centrally Sponsored Schemes for Co-operatives available with Govt.of India.

NCDC has provided need based assistance to Co-operative in H.P. in the Agriculture and Allied Sectors for infrastructure development working capital, marketing / processing activities, consumer business etc. The assistance shall be provided by NCDC to the State Govt. and State Govt. would extend the loan on the same terms and conditions to the societies which are as under :

S.No. Name of Scheme/Pattern of Assistance From NCDC to State Govt From State Govt. to Societies
1. Margin money assistance to State /Regional Marketing federation 80% loan & 20% Subsidy Govt has decided to advance the loan further to the Coop. socs. on the same terms and conditions as it would receive from the NCDC
2. Assistance for the purpose of transport vehicles to coop. Societies 70% loan and 20% subsidy -do-
3. Storage assistance for construction of new godowns by village level and marketing and processing cooperatives 92½ % loan -do-
4. Assistance for extensionof storage up gradation and renovation of existing godowns 90% loan -do-
5. Share capital assistance to Handloom Weavers Cooperatives 80% loan & 20% subsidy -do-
6. Assistance for construction of work sheds by Weavers Cooperatives 95% loan -do-
7. Corporation sponsored schemes for extension and renovation of showrooms and show-Room-cum-god owns by the Apex/ Regional Primary Level Weavers Coop. Societies 95% loan -do-
8. Construction/ Renovation of existing infrastructure Godown/ Construction of new shops/ godowns/ Kerosene Tanks/ Ware Houses etc 95% loan -do-
9. Assistance for the purchase of computers by State federation/ Banks/ Distt. Level societies/ PACS loan 70% subsidy 20% -do-
10. Assistance for establish Integrated Dairy Project 60% loan & 20% subsidy -do-
11. Assistance for Tourism and Hospitality 80% loan & 20% subsidy -do-
12. Assistance for Transportation Loan as per requirement -do-
13. Assistnace for Electricity generation by New/ Non-conventional/ renewable energy source 80% loan & 20% subsidy -do-
14. Assistance for Rural Housing 70% Loan 20% Subsidy -do-

Earlier govt. use to give guarantee of the loans raised through NCDC but w.e.f. 11.1.2001 the Govt. has taken the decision not to give guarantee for any kind of loan raised from NCDC by reviewing the policy as under :

  1.  No proposals involving any loan receipts to be passed on, in the form of connectional loan/share Capital on subsidy/GIS shall be considered.
  2.  Other NCDC assistance proposals to be passed on through State Govt. will be examined on a case to case basis to ensure that concerned societies exhibit the ability to repay State Govt. as per the NCDC terms add conditions.

In addition to it Societies who are desirous to avail the loan facility shall have to observe the following conditions :

  1.  A.D is requested that A.D may re-prioritize NCDC cases upto a total maximum limit of Rs.2 crore where State Govt. guarantee would be involved.
  2.  No case be recommended in the re-prioritization where the concerned co-operative is in cumulative loss or has past history of default in loan payment to State Govt.
  3.  A fresh Screening Committee recommendation on above lines be sent to F.D, clearly showing the total amount being recommended to NCDC for release and liability thereof of State Govt. Guarantee.
  4.  As a general policy, F.D notes that A.D should encourage the societies to obtain NCDC/ Co-operative Bank loan, without State Govt. involvement.

The interest rates on NCDC loans are as under :

Scheme Effective rate of interest *
Term Loans
(a) Through state Government
(i) Weaker Section programmes 12.75%
(ii) Other Programmes 13.00%
(b) Direct funding
(i) Weaker Section programmes
- upto project cost of Rs.50 lakhs 12.75%
- above project cost of Rs.50 lakhs 13.00%
(ii) Other Programmes 13.25%
Working Capital loans
(a) Through state Governments (upto two years) 11.75%
(b) Direct funding **
(i) Upto One year
- national/State level Co-operatives 11.75%
- District Central Co-operative Banks 11.75%
- Other Co-operatives 11.75%
(ii) Loan above one year (upto two years) 12.25%
* Subject to payment of instalments on or before due date.
** In case of direct funding where the period of loan is 6 to 9 months, the rate of interest(effective) may be 0.25% less than the rate for one year loan and whre the period of loan is 3 to 6 months the rate of interest effective may be 0.50% less than the rate for one year loan.

Note : These interests rates are subject to change from time to time which shall be corrected accordingly.

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