Rates and Charges on Loans

INTEREST RATES AND SERVICE CHARGES ON LOANS AND ADVANCES
BASE RATE 10.25%
MCLR MCLR (w.e.f 01.08.2017)
Overnight MCLR 8.10% p.a.
One Month MCLR 8.20% p.a.
Three Months MCLR 8.50% p.a.
Six Months MCLR 8.90% p.a.
One Year MCLR 9.80% p.a.
Interest Rate Range of Contracted Loans for the past quarter
Retail Loans Disbursed during Q4 (2016-17)
Product Interest Rate Range Mean
Housing Loans 10.10 - 10.50 10.21
Education Loans 13.75 - 14.75 14.02
Loan Against Property 11.00 - 14.25 13.34
Vehicle Loans 10.25 - 10.75 10.72
Personal Loans 12.00 - 19.00 16.16

Processing Fee

Sl no. Nature of credit facility Rate of PF
1 Funded facilities  
  (a) Regular facilities-General (Other than those specifically mentioned below) Up to Rs 25,000/- Nil
Above Rs 25,000/- For new credit facilities and enhancement in existing working capital limits (enhanced portion): 1.00% of loan/ limit sanctioned subject to minimum Rs 250/-
Above Rs 25,000/- For renewal of existing working capital limits: 0.50% of limit sanctioned, subject to minimum Rs 250/-
  (b) Temporary enhancements/ ad-hoc facilities 0.25% of amount sanctioned without any upper ceiling
  (c) UBD (Rubber bills) Rs 100/- per lakh (subject to minimum Rs 100/-) for fresh as well as renewal.
  (d) Housing Loans 0.50% of loan amount
  (e) Non funded facilities 50% of rates applicable to funded facilities

The above rates are the minimum amount of Processing Fee, unless higher amount is stipulated by the sanctioning authority and do not have any upper ceiling on the amount of PF.

Documentation Charges

Documentation charge should be collected for all fresh advances and for renewal and enhancements where fresh/additional documents are executed, at the rates given in the following schedule.

Sl. no. Nature of advance Amount of credit facility Documentation charge (Rs)
1 General- other than housing loans Above Rs 10,000/- up to Rs 1.00 lakh 100/-
2 Above Rs 1.00 lakh up to Rs.10 lakh 300/-
3 Above Rs 10 lakh 500/-
4 Housing loans All amounts 500/-

Documentation charge should be collected at the time of execution of documents.

The following categories of credit facilities are exempted from levying documentation charges:

  1. Staff loans
  2. Loans under Govt. Sponsored Schemes and DRI loans
  3. Advances against deposits, IVP, KVP, NSC, UTI units and Life Insurance Policies
  4. One-time discount of bills, cheques, DDs and other instruments.
  5. Gold Loans (Ordinary & Agriculture)

Ledger Folio Charges

Particulars Folio Charges
Savings Bank Accounts Free
Current/OD Accounts Average Monthly Balance (AMB) in the Account Charges per folio consumed
Credit Balance up to Rs. 50,000 Rs. 50 + Tax
Credit Balance above Rs. 50,000 & up to Rs. 1 lakh Rs. 25 + Tax
Credit Balance above Rs.1 lakh Free
OD Accounts/ Accounts withe Debit balance Rs. 50 + Tax
Folio charges will be debited at the end of the respective quarter
Minimum folio charges for the first two categories of accounts- Rs. 50 per quarter
Note: 40 customer transactions constitute one folio

Service Charges for Advance Accounts

Service Charges should be levied at the rates specified in the schedule below on all advance accounts except the following:

  1. Loans against deposits, Gold Loans (Ordinary & Agriculture) and all staff loans
  2. Advances to Weaker Sections under Govt. Sponsored Schemes and DRI loans
  3. Recalled, Suit Filed, Decreed Debt and Revenue Recovery Initiated accounts

Rate of service charges (Rs per account per annum):

Credit Limit (Rs) Service charge (In Rs) Credit Limit (Rs) Service charge (In Rs)
Upto 25000 10 Above 10 lakh to 25 lakh 250
Above 25000 to 2 lakh 25 Above 25 lakh to 50 lakh 500
Above 2 lakh to 3 lakh 75 Above 50 lakh to 75 lakh 750
Above 3 lakh to 5 lakh 125 Above 75 lakh to 1 crore 1000
Above 5 lakh to 10 lakh 175 Above 1 crore 2000

Service charges are being debited by CBS automatically at quarterly intervals

In the case of housing loans, additional service charge @ Rs 100/- per Rs 1.00 lakh of loan amount should be collected at the time of disbursal.

Service tax etc: - Service tax, Swachh Bharat Cess and all other applicable taxes and levies should be collected, at the appropriate rates (currently 14.50%) on the amount charged as PF, documentation charges and service charges.

Stock Audit Fee

  • Advance of Rs.1 Crore and above upto Rs.2 Crores. Rs.2000/- + Service Tax.
  • Above Rs.2 Crores and upto Rs.3 Crores. Rs.3000/- + Service Tax
  • Above Rs.3 Crores and upto Rs.4 Crores. Rs.4000/- + Service Tax
  • Above Rs.4 Crores. Rs.5000/- + Service Tax

Commission on Bank Guarantee

Nature of BG Rate of Commission  
Cash margin - less than 50% Cash margin - more than 50% and less than 100% Cash Margin – 100% or More
Performance Guarantee Rs 100/- plus 2% p.a. or part thereof Rs 100/- plus 1.00% p.a. or part thereof Rs 100/- plus 0.50% p.a. or part thereof
Other than Performance Guarantee Rs 100/- plus 3% p.a. or part thereof Rs 100/- plus 1.50% p.a. or part thereof Rs 100/- plus 0.75% p.a. or part thereof

Valuation Expenses and Inspection charges are also being levied for advances at actuals.