Penal and Service Charges applicable to Customer Accounts

Sr. No.

Nature of Charge/fees

Quantum of Penal Charges (Taxes extra)

1

Delayed payment of dues including Pre-EMI Interest, Principal and Interest, Service charges, Bills overdue etc

Penal charge is to be charged only on delayed payments (instalment and/or interest) for the overdue period and not on the entire liability.

2

Excess over the drawing limit due to insufficient stock and book debts in case of fund based working capital facility

1% on the overdrawn portion till the account is regularized.

Penalty shall be charged for the actual number of days of overdrawing and not on the entire liability.

3

Delayed payments in case of Ad-hoc limit sanctioned.

1% on the overdrawn portion till the account is regularized.

Penalty shall be charged for the actual number of days of overdrawing and not on the entire liability.

4

Excess limit used due to Invocation of Bank Guarantee.

1% on overdrawn amount for the overdrawn period and not on the entire liability.

5

Delayed / non- submission of hypothecated Stock & Book Debts statement or required data for credit facilities for the period beyond due date

1% on entire outstanding of fund based working capital facility for the default period subject to Maximum of Rs. 25000/-

6

Non-compliance of Financial Covenants as per sanction terms & condition

1% p.a for non-compliance of each condition.

7

Borrower delayed / failed to create equitable mortgage of immovable property/properties within a stipulated time or creation/ Registration of required charges, without extension of time from the Bank

8

If the insurance of Hypothecated stock / machinery / equipment/ mortgaged immovable property is not renewed or not submitted to the bank by the due date.

9

If the bank is not informed even after three months from the date of change in the constitution of the firm.

1% on entire outstanding of fund based working capital facility for the default period subject to Maximum of Rs. 25000/-

10

In case of company / LLP, the borrower has not created ROC charges in favour of bank within stipulated time

0.25% p.a. for delay / default period.

Penalty shall be charged for the actual number of days of delay/default.

11

Non-submission of Stock Audit certificate, wherever applicable.

Rs. 5,000/- per instance.

12

Delay in submission of Audited financial statements or required papers for renewal of credit facilities for the period beyond due date

13

Prepayment of Loan

As per the Terms of the Sanction subject to Max. Prepayment penalty of 4%@ shall be collected on the prepaid amount. In case of Waiver application, same shall be decided by the CEO / GM.