Islamabad: The federal government has announced the interest rate on the cash development loan given to the provincial governments for three years.
During the last three years, the federal government has provided cash development loans to provincial governments, loans to local governments and their financial and non-financial institutions and corporations, and capital outlays by the federal government in commercial departments, including vehicles and motorcycles to government employees. 11.20% to 17.84% interest rate has been announced on loans obtained for purchase and house building.
In this regard, a notification has been officially issued by the Budget Wing of the Ministry of Finance, which states that the cash development loans given to provincial governments, loans given to local governments and their financial and non-financial institutions and corporations and 11.20% interest rate for the financial year 2021-22 and 15.58% for the financial year 2022-23 and 17.84% for the previous financial year 2023-24 will be applicable on the capital outlay of the federal government in commercial departments.
Apart from this, the final interest rate of 17.84% will be applicable for the last financial year 2023-24 on the loans obtained for the purchase of vehicles and motorcycles and for house building.
