NATIONAL COOPERATIVE DEVELOPMENT CORPORATION

NATIONAL COOPERATIVE DEVELOPMENT CORPORATION

4, Siri Institutional Area, Hauz Khas, NEW DELHI—110 016

Phone: 011-26962478, 26960796, 26962379, 26569246
FAX: 0111-26962370, 26516032, Email: mail@ncdc.in

Activities Funded By NCDC

a) Marketing

· Margin Money assistance to Marketing Federations

· Strengthening share capital base of primary / district marketing societies

· Marketing (Fruit & Vegetable)

· Working Capital Finance

b) Processing

· Setting up of new Sugar factories (Investment Loan) / Modernisation and Expansion/ Diversification of existing Sugar Factories (Investment loan + term loan)

· Margin Money assistance to cooperative Spinning Mills / State Cooperative Cotton Federations / Share Capital participation in New Spinning Mills / Modernisation/ Expansion of Spinning Mills / Modernisation of Existing and Establishment of Modern Ginning & Pressing Units / Rehabilitation of Sick Spinning Mills / Cotton Development Programmes

· Other Processing Units: Food Grains / Oilseeds / Plantation Crops / Cotton Ginning and Pressing / Fruit & Vegetable / Maize Starch / Particle Board, etc.

· Power Loom Cooperatives covering pre and post loom facilities

c) Cooperative Storage

· Construction of godowns (Normal)

· Upgradation/renovation of existing godowns

· Construction of Cold Storages / Upgradation/ Rehabilitation of Cold storages

d) Distribution of essential articles through cooperatives

· Distribution of Consumer articles in rural/ urban/ semi urban areas.

e) Industrial Cooperatives

· All types of Industrial Cooperatives, Cottage & Village Industries, Handicrafts/rural crafts etc.

f) Service Cooperatives

1.Agriculture Credit. 2.Agriculture Insurance. 3.Labour Cooperatives

4.Water Conservation works/services. 5.Irrigation, micro irrigation in rural areas

6.Animal care/health disease prevention

7. Rural sanitation/ Drainage/ Sewage system through Cooperatives

g) Agricultural Services

1.Cooperative Farmers’ Service Centres.2. Agro Service Centres for Custom hiring

3. Establishment of Agricultural inputs manufacturing and allied units.

4. Irrigation/ Water harvesting programmes.

h) District Plan Schemes

· Integrated Cooperative Development Projects in selected districts (ICDP)

i) Cooperatives for Weaker Sections

· 1.Fisheries. 2.Dairy. 3.Poultry.3.Tribal. 4. Handloom. 5.Coir & Sericulture.

j) Assistance for Computerisation

k) Promotional and Developmental Programmes:

· Technical & Promotional Cells

· Consultancy for studies/project reports, management studies, market survey & evaluation of programmes, etc.

· Training and Education

I) Consultancy Services

National Cooperative Development Corporation

(Finance Division)

4, Siri Institutional Area, Hauz Khas,

New Delhi - 110 016

No. NCDC:1-1/90-Budt. March 24, 2009

To,

The Secretary In-charge of Cooperation,

All State Governments & Union Territories

Sub: Interest rates on NCDC loans

Dear Sir,

In modification of our letter of even number dated 25.2.2009 interest rates for NCDC loans are revised w.e.f. 16^th March, 2009 as follows:

Scheme	Effective rate of interest *
A. Term Loans: (a) Through state governments (b) Direct funding (i) Weaker section programmes – upto project cost of Rs.50 lakhs – above project cost of Rs.50 lakhs (ii) Other Programmes	10.25% 10.25% 10.50% 10.50%
B. Working Capital Loans: (a) Through state governments (b) Direct funding (i) National/State level cooperatives - upto one year (ii) Other cooperatives - upto one year (ii) Loans above one year (upto two years)	9.00% 9.00% 9.25% 10.00%

* Subject to payment of instalments on or before due date.

Note:

(a) In case payment of the installment is not received on or before due date, normal rate (effective + 1%) would be applicable.

(b) Penal rate of interest in case of default will continue @ 2.5% above normal rate.

(c) Interest will be charged as applicable at the time of release of funds.

(d) Weaker section programmes:

(i) Fisheries, (ii) Tribal/ SC & ST/ Hill Area Cooperatives, (iii) Dairy, (iv) Poultry

(v) Handloom, (vi) Coir, Jute & Tobacco, (vii) Sericulture

2. Period of loan will be upto 8 years. Period for margin money assistance (loan) will continue to be upto 5 years and working capital loan will be provided upto 3 years.

3. Moratorium on term loans for the projects/ godowns will be upto 3 years, depending on gestation period of the project. For margin money, working capital and investment loan to State Governments for share capital participation, there will be no moratorium.

4. In case of direct funding, processing fee shall be charged @ 0.5% of the sanctioned amount, not exceeding Rs.3 lakhs (0.5% of Rs.6 crores) in each case. However, processing fee shall not be charged for working capital loans upto one year.

5. Other terms & conditions as contained in Corporation’s letter of even number dated 15th October, 1984 shall continue to be applicable.

6. NCDC is charging interest at annual rests through state governments and at six-monthly rests in case of direct funding, as compared to monthly interest charged by other banks/ financial institutions.