The rate of interest on loans sanctioned in respect of Externally Aided Project including Back to Back out of the loan assistance from World Bank/A.D.B etc. will be same at which it is received.
Loans to Local Bodies – Municipal Corporations, Municipalities, Improvement Trusts, Development Authorities, Zilla Parishads, Anchalic Parishads, Panchayat Samities, Housing Boards etc. — 13.00.
The period of repayment of working capital loans should preferably be restricted to 2 or 3 years. In no case, however, the period of these loans should exceed 5 years.