A spokesman of the Finance Department said here today that it had been decided to charge interest at a rate of eight per cent for first advance and at nine per cent for the second advance for house building, motor car, scooter, motor cycle, moped, cycle, computer and marriages loans for the financial year 2011-12.
He said the interest would be charged at eight per cent for first advance for the period from April 1, 2011, to November 30, 2011, and at 8.6 per cent for first advance from December 1, 2011 to March 31, 2012.
Similarly, rate of interest for second advance for the period from April 1, 2011, to November 30, 2011, would be nine per cent and the same from December 1, 2011 to March 31, 2012 would be 9.6 per cent.
He said that in case of mis-utilisation of any loan, penal interest would be charged at the rate of 10 per cent per annum over and above the normal rate of interest.
