Ref.No.CGTMSE/(44)/892 November 03, 2015

All the Regional Rural Bank Member Lending Institutions of CGTMSE


Circular No. 99/2015-16

Madam / Dear Sir,

Review of Interest cap and other registration criteria of Regional Rural Banks (RRBs) as Member Lending Institutions (MLIs) of CGTMSE

Please refer to our Circular No. 80/2014-15 dated July 16, 2014on the above subject (available on www.cgtmse.in) communicating, inter alia, Average Base Rate (ABR) for FY 14-15. We had also mentioned in the said Circular that ABR to all RRB – MLIs for FY 15-16 shall be advised separately. In this connection we advise that the ABR for FY 2015-16 shall be 9.52% p.a. The ABR for FY 2015-16 would be applicable for all loans/credit facilities sanctioned/renewed by RRB – MLIs during the current Financial Year and proposed to be covered under Credit Guarantee Scheme. The annual interest that can be levied on the loans/ credit facilities sanctioned/renewed by RRB – MLIs and proposed to be covered under CGS should not be more than the applicable cap rate (advised to MLIs from time to time, the present cap rate being 4% p.a. which shall be reduced to 2% for the credit facilities sanctioned by RRB – MLIs w.e.f. December 01, 2015 – ref. our letter no. CGTMSE/(44)/630 dated September 30, 2015) over applicable ABR. Please note that the ABR of 9.52% p.a. for the FY 2015-16 would remain valid till the ABR for subsequent FY is advised by us.

Please bring the contents of the letter to the notice of all your offices.

                                                                                                                                 
Yours faithfully,
Sd/-
(S.S.Bakshee)
General Manager