The Hindu : Karnataka / Bangalore News : Interest on industrial loans to be waived

Online edition of India's National Newspaper
Thursday, Jul 19, 2007
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Karnataka

Karnataka - Bangalore

Interest on industrial loans to be waived

Staff Reporter

Bangalore: The Government has decided to waive simple, penal and compound interest on certain category of industrial loans extended by the KSFC under the One Time Settlement (OTS) scheme, Deputy Chief Minister B.S. Yediyurappa, who holds the Finance portfolio, has said.

Replying to D.M. Putte Gowda (Congress) in the Legislative Council on Wednesday, Mr. Yediyurappa said the OTS scheme was applicable to loans up to Rs. 10 lakh and below taken for industrial purposes but remained “NPAs” as on April 4, 2006. Pertaining to cases where the loan amount was less than Rs. 2 lakh, the borrower had to pay the principal and other debts (less the amount recovered) and the Government would reimburse the entire interest payable on simple interest basis. If the loan amount was over Rs. 2 lakh and up to Rs. 5 lakh, the borrower had to pay the principal, other debts and 25 per cent of overall interest minus the amount already recovered. If the loan amount was in the range of Rs. 5 lakh to Rs. 10 lakh the borrower had to pay 50 per cent of the overall interest in addition to the principal and other debits minus the amount already repaid, he explained.

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