The OID Board determines the terms and conditions governing the loans from time to time on the basis of national importance of the project(s) being undertaken by the Oil PSUs and also the current market scenario for determining the rates of interest on OIDB loans. An independent Project Appraisal Cell has been formed to determine the eligibility of OIDB loan assistance. For details click
Review of Interest Rates on OIDB loan
The OID Board has constituted a Standing Committee for review of the interest rates on OIDB loans for different tenors after taking into account the interest rates prevailing in the market and giving its recommendations to the Board. The Committee meets once in every quarter to review the interest rates on OIDB loans. The formulation for charging interest rates on OIDB loans is as follows :
a) The month-end interest rates for Government Securities having different residual maturities as per the latest available RBI's monthly bulletin is taken as the benchmark rates for computing interest rates on OIDB loans for different tenures.
b) 50% of the Corresponding month-end margins of AAA rated Bond on Government securities available in page INCORP (Quote AAA INBMK) is added to the benchmark rate.
Discounts
As per the recommendations of the Committee, further discounts on rest rates on OIDB loans are also given to certain type of projects such as: -
Ø Projects of Strategic National Importance that have a direct bearing on the energy security of the country are eligible for a discount of 100 basis points on the effective interest rates.
Ø Environmental Improvement projects and projects for special areas, such as, North-East region, J&K state etc. are eligible for a discount of 50 basis points on the effective interest rates.
Click Here Applicable interest rates on OIDB loan
Click Here Project Appraisal Cell
Click for Loan Application Form
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