Interest rates for NSSF loan to Centre and States for FY 2016-17 revised and fixed at 8.8% in place of 9.5%.

Interest rates for NSSF loan to Centre and States for FY 2016-17 revised and fixed at 8.8% in place of 9.5%. 

In line with the revision of interest rates of small savings schemes, interest rates for the National Small Savings Fund (NSSF) loan to Centre and States for FY 2016-17 has been revised and fixed at 8.8% in place of 9.5%. 

The National Small Savings Fund (NSSF) invests its net collection as loan to Centre and State/UT Governments. The interest rate of NSSF loan to Centre and States for Financial Year 2015-16 was 9.5%. This interest rate was felt to be burdensome on States’ economies. 

In the context of easing the transmission of the lower interest rates in the economy, the Government has taken a comprehensive view on the social goals of certain National Small Savings Schemes. The interest rates for First Quarter of the Financial Year 2016-17 in respect of various small savings schemes were communicated through O.M. dated 18.3.2015. 

Source:PIBNEWS