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SCHEME FOR ADVANCE FUNDING

1. Agencies
Loan may be released in advance to State Channelising Agencies /Banks (acting as implementing agencies of NHFDC) with which General Loan Agreement has been executed.

2. Amount of advance funding
Loan may be released in advance on the request of the agency upto an amount equal to notional allocation made to the agency. The notional allocation for the SCA may be reviewed and revised by NHFDC during the year based on the performance of the SCA.
a) Release of Advance Fund: The loan may be released in advance on the request of the agency, maximum to the extent of 50% of notional allocation as First Installment and balance (upto remaining 50%) on receipt of 80% utilization details of First Installment.
b) Social Priorities : Further, the SCAs are required to endeavor to cover target groups in accordance with the priorities laid down as under:
 (a) Women 50%                                        (b) Men 50%
The SCAs are expected to cover the beneficiaries in such a way that persons from each type of disability are covered in proportion to their respective population in state and district level.

3. Utilisation of advance fund
The amount of advance loaning made by NHFDC to the agency shall be utilized for extending financial assistance for the benefit of Persons with Disabilities:
a) For financing projects falling under the delegated authority of the SCA.
b) For financing projects that are in conformity with conditions for preapproved projects communicated to the agency in this regard by NHFDC.
c) For such other purpose as may be intimated by NHFDC in writing.

4. Utilisation Details
Advance loans released by NHFDC has to be utilized by the agency within a period of 90(ninety) days from the date of issue of Demand Draft. Seven (07) days grace period may also be allowed towards the transit period of the demand draft.
Details of utilisation of funds shall be communicated to NHFDC by the agency immediately.

5. Rate of Interest / Penal Interest
The following rate of interest/Penal rate of interest etc. would be charged from the agency by NHFDC in respect of Advance funding.

Conditions Rate of Interest
a) Where funds advanced has been
utilized by the SCA within the
utilisation period of ninety(90) days
(plus a grace period of seven(07) days
for the transit period of demand draft)
from the date of issue of demand
draft(by NHFDC)		 2 % p.a. of the advance loaning upto the
date of utilisation of fund of ninety(90)
days (after a grace period of seven days
for the transit period of demand draft
during which no interest will be payable)
from the date of issue of Demand Draft
whichever is earlier. From the date of
utilisation of funds applicable rate of
interest would be applied.
b) Where loan Advanced could not be
utilized within the utilisation period and
unutilised money is retained by the SCA
OR
The advance loan amount was utilized
on a later date than the utilized period		 a) The SCAs shall be exempted from levy
of interest on unutilized funds if their
cumulative utilization at the end of
preceding financial year is 80% or
more.
b) If the cumulative utilization level as at
end of preceding financial year is less
than 80%, Interest on Unutilised Funds
equivalent to 4% above normal
applicable interest rate shall be levied on
funds utilized beyond 90 days, for the
entire period including aforesaid 90
days, during which the funds remained
unutilized.
c) Notwithstanding above, funds that are
not utilized at all, and are returned
without having been further disbursed to
the Beneficiaries, shall also attract, and
SCAs shall be liable to pay, a Rate of
Interest, equivalent to 4% above the
normal applicable rate of interest for the
scheme under which the funds were
disbursed, for the entire period,
including the aforesaid 90 (Ninety) days,
till the funds are returned to NHFDC.


6. Repayment of Loan/ Moratorium period
The loan released through Advance funding shall be repaid in twenty (20) quarterly instalments within five years. Other aspects regarding repayment of loan, moratorium period, etc. that have not been expressly stated hereinabove shall be governed in accordance with lending policy of the Corporation

7. Miscellaneous matters
Issues pertaining to implementation of this scheme, interpretation and application of the norms and matters incidental thereto shall be decided by CMD, NHFDC in the best interest of the Corporation.

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