Interest rates for NSSF loan reduced by 0.7% for FY 2016-17

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.

Interest rates for the National Small Savings Fund Loans have been reduced by  0.7% for the Fiscal 2016-17. The interest rates on loan now stands at 8.8% in as against 9.5%. This revision is in line with the revision in the interest rates of small saving schemes

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.