Loan Rates

Default and penal charges under any line of Credit

"Penal Charges for delayed servicing on interest/ principal"

Penal Charges shall be charged for the entire period of default on the amount in default on occurrence of any of the following events. The charges shall be applied every month during the occurrence of default. –

• 1. Delay of more than 15 days in servicing of monthly interest from the due date.
• 2. Delay of more than 15 days in repayment of monthly instalment of principal or EMI from the due date.
• 3. Delay of more than 15 days in repayment of quarterly instalment (principal) from the due date.
• 4. A Concession of 0.25% on the applicable Interest Rates shall be customarily passed on to each such borrower who brings in margin of more than or equl to 50% of the unit cost across all Vehicle Loan segments (Public/Farmers) only.
• 5. Interest rates on all activities , other than mentioned above, shall remain unchanged.

Penal Changes for delayed submission of financial statements/ stock statements/ other data

Penal Changes shall be charged for the entire period of default on the entire outstanding balance on occurrence of any of the following events. The charges shall be applied every month during the occurrence of default.

• 1. Delay of more than 30 days in submission of statement of stocks/ book-debts.
• 2. Financial statements/ other related data required for processing of review/ renewal proposal in respect working capital facilities/ Term Loans are submitted after the due date of renewal/ review.
• 3. Delay of more than 30 days in submission of audited financials. The period of delay shall be considered from the date of signing of the audit report.
• 4. Delay of more than 30 days in submission of any other information on project implementation, wherever prescribed in case of project loans.
• 5. Interest rates on all activities , other than mentioned above, shall remain unchanged.

Penal Charges on account of irregular drawings in Fund Based working capital limits, delayed adjustment of ad-hoc credit facilities/ TOD facilities and charging of Penal charges thereof.

Drawings in CC/ SOD accounts are to be permitted within the sanctioned limit or Drawing Power, whichever is lower. Also, ad- hoc / TOD facilities are required to be got adjusted within the period for which these types of facilities were allowed. In case of an out of order CC/SOD facility i.e. balance outstanding in the account being in excess of sanctioned limit/ Drawing Power, default charges at the applicable rate shall be charged on the irregular portion till the irregularity persists. Likewise, default charges at the applicable rate prescribed for ad-hoc/ TOD facility shall be charged in the event of delay in adjustment of the facility for the delayed period on the outstanding amount of ad-hoc/ TOD facility.