Finance Ministry Lowers Markup Rate for Development Loans

The Ministry of Finance has notified the markup rates for development loans and advances for the fiscal year 2024-25, showing a slight reduction from the previous year. The new rates, outlined in a notification issued by the Finance Division, set the mark-up at 17.74% per annum, slightly lower than the 17.84% charged in FY 2023-24. The revised rate of 17.74% will apply to the following categories: Additionally, the same rate will apply to loans and advances provided for the purchase of a conveyance and house building. While the new rate represents a minor reduction, it remains significantly higher than the 15.58% recorded in FY 2022-23.