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Service Charge Loan and Advances

Service Charge on Loan and Advances

 

Service Charges on Loans and Advances have been grouped into four categories for easy reference :as under:

(i) General Services Charges Annexure -A
(ii) Services Charges on ILC Annexure -B
(iii) Service Charges on Bank Guarantees and Annexure -C
(iv) Processing /Upfront Charges Annexure -D
 

ANNEXURE 1

Part A 

General Service Charges- Advances Related Services

S.N Head Charges
1 Documentation Charges



For supplying copy of documents
FB/NFB
i)upto Rs. 2.0 lac- NIL
ii) upto Rs. 25 lac- Rs. 2500/-
iii) upto Rs. 100 lac- Rs. 5000/-
iv) above Rs. 100lac- Rs.10000/-

Govt Sponsored Scheme/PS advances uptoRs. 25000/- - NIL
ii) upto Rs. 100 lac- Rs. 500/-
iii) above Rs. 100lac- Rs. 1000/- plus actual charges.
2 Allocation of limits Rs. 10000/-p.a. for allocation of limits to each branch (to be recovered by controlling branch)

In case of advance moved from one business unit to another at Banks instance no charges.
3 Commitment charges

Working capital for all fund based limits

Term Loan

Exemptions (from Working Capital limits mentioned in above)

i. Following charges to be levied on average unutilized portion of W.C. facilities exceeding 3.00 cr.

Undrawn balance as % of total fund based working capital limit Commitment charges (%p.a. on undrawn balance)
Up to inclusive of 25% Nil
Above 25% to 50% 0.50% p.a.
Above 50% 1.%p.a.

The unutilized portion will be ascertained by calculating the average utilization during the year. The difference between the average utilization determined as above and the sanctioned limit shall represent the unutilized portion.

The year for this purposes shall be taken as calendar year and the commitment charges shall be charged at the end of year say in the month of December of the respective year.

ii. For loans above Rs. 5 cr (irrespective of working capital limits) for delayed drawdown (as per drawdown schedule given at the time of sanction) beyond 3 months 0.50 %p.a. from the date fixed for availment to the date of actual availment.

  • Export credit
  • Rice sheller
  • Cold storage
  • Seasonal Credit Facilities
  • Bill finance including bill discounting/ purchase, limit or sub-limit sanctioned against bills for collection
  • Limits sanctioned to commercial banks, FIs, Co-operative banks including land development banks

Levy of commitment charges, as above, shall be in addition of the overall ceiling of 2% p.a. penal / additional interest stipulated as per Banks extant guidelines in vogue on interest rate structure

4 Revalidation/Amendments/modification of sanction terms (per reference)e.g change of constitution, merger, demerger, ROI, etc. Charges of Rs. 25,000. per request to be charged for the first time. For each subsequent request, Rs. 50,000 to be charged as amendment charges.

In Consortium accounts, Amendment charges to be charged in line with other lenders
5 Issuance of NOC for ceding first/second charge /other purposes Rs. 100/- per certificate
For all accounts above Rs. 5.0 crore Rs. 1000/-
6 TUF /subsidy application processing Fee i) for loan upto Rs. 1.0 cr - Rs. 1000/-
ii) above Rs. 1.0 cr.- Rs 2500/-
7 Issuance of any other certificate i.e no dues, interest certificate, balance confirmation, maintenance of account, etc on behalf of our clients as well as clients referred by other banks other then for Govt. sponsored schemes Rs. 100/- per certificate
Exempt: weaker section in P.S , and SHGs as part of weaker section
8 Issuance of Solvency Certificate Upto Rs. 1lac- Rs. 500/-
Upto Rs. 25 lac- Rs. 2500/-
Upto Rs. 50 lac- Rs. 5000/-

Above Rs. 50 lac upto Rs.100 lac- Rs. 15000/-

Above Rs. 100 lac- Rs. 20000/-
9 Lead Bank charges in consortium accounts

A.Term Loan facilities

  • i. Consortium limit upto Rs. 50 cr- 0.30 % of total Term loan facility under consortium with min. Rs. 5 lac
  • ii. Consortium limit above Rs. 50 cr.- 0.30% of Term loan facility under consortium with max. Rs. 50 lac

Above charges will be taken at the time of sanction. Thereafter, 0.05% is to be charged each year at the time of review.

B. Working Capital Limits : Following Lead Bank charges are to be recovered at the time of granting fresh/ renewal/ enhancement:

  • i. Consortium limit upto Rs. 50 cr- 0.25 % of total fund based and Non fund based limit with min. Rs. 5 lac
  • ii. Consortium limit above Rs. 50 cr.- 0.15% of total fund based and Non fund based limit with max. Rs. 50 lac

For cases where the borrower is availing both Term loan and Working capital facilities, the maximum amount should not exceed Rs. 50.00 lac.

This will be over & above to the usual processing fee/ upfront charges as per guidelines

10 Providing credit information/opinion including introduction in case of borrowal accounts if provided on request of the borrower Rs. 1000/- per occasion
11 Registration/modification/satisfaction of charges with ROC Actual + Rs. 1000/-
12 Registration of Power of Attorney Rs. 500/-per reference
13 For getting noted Banks lien on title deed/lease deed with State Industrial Corporation which leases out the land for industrial use to the borrower i)For Loan/Limit upto Rs. 1.0 cr.-
Actual charges + Rs. 1000/-

ii) for loan/limit above Rs. 1.0 cr.- Actual charges+ Rs.2000/-
14 Inspection Charges
Particulars Charges
For Limits up to Rs. 25000.00 Nil
Limit above Rs. 25000 up to Rs. 50000 For General: Rs. 200.00;
For Agriculture/ Weaker Section: Nil
Limits above Rs. 50000.00 up to Rs. 1.00 lac For General: Rs. 250.00
For Agriculture/ Weaker Section: Nil
Limits above Rs. 1.00 lac up to Rs. 2.00 lac For General: Rs. 300.00
For Agriculture/ Weaker Section: Nil
Limits above Rs. 2.00 lac up to Rs 5.00 lac For General: Rs. 500.00
For Agriculture/ Weaker Section: 300 once annually
Limits above Rs. 5.00 lac up to Rs 10.00 lac For General: Rs. 1000.00
For Agriculture/ Weaker Section: 400 once annually
Limits above Rs. 10.00 lac to Rs 1.00 Crore For General: Rs.1250.00 per inspection maximum of Rs. 5000/- annually
For Agriculture/ Weaker Section: Rs 500.00 once annually
Limits above Rs. 100.00 lac For General: Rs. 3000.00 per inspection maximum of Rs. 12000/- annually
For Agriculture/ Weaker Section: Rs 750.00 once annually

In Consortium As per Consortium decision

In Case of special Schemes As per the schemes

With regard to performance guarantee for more than one year, 200% of above amount to be charged, but same shall not exceed the maximum limit mentioned therein (i.e. Rs. 5000 annually/ Rs12000 annually.).

No Inspection charges to be levied in staff loan cases. This will exclude cases where staff is a co-borrower (except education loans).

The aforesaid charges are to be levied as per periodicity of inspection, stipulated in banks guidelines.

15 Presentation of usance bills for acceptance Rs. 100/- per bill
16 Noting + protesting on bills Rs. 500/- per bill plus legal expenses plus out of pocket expenses.
17 Obtaining of surrender value of policy of Life insuarance Rs. 200/- plus out of pocket expenses
18 Co-acceptance of Bills Rs. 150 + 1..0% per quarter or part thereof for the liability period , per bill
 

Part B 

Inland Letter Of Credit

S.N Head Existing charges Revised / Charges
1 USANCE CHARGES
(i) bills upto 7 days sight including demand bills
(ii) bills over 7 days upto 3 months sight
(iii) bills over 3 months sight
0.20% , Min. Rs.100/-

0.40% , Min. Rs.100/-

0.40% for first 3 months + 0.20 % p.m. in excess of 3 months Min. Rs.100/-
0.25% , Min. Rs.300/-

0.50% with min. Rs.300/-

0.50 % for first 3 m + 0.25% pm in excess of 3 m. With min. Rs. 300/-
2 COMMITMENT CHARGES
( In addition to Usance charges) For the period of liability( from the date of opening of credit to last day of its validity)
@0.20% for every period of 3 months or part thereof with minimum Rs. 100/- @0.30% for every period of 3 months or part thereof with minimum Rs. 300/-
3 Reinstatement of Revolving LC Normal usance and commitment charges with minimum Rs. 100/- Normal usance and commitment charges with minimum Rs. 500/-
4 LC with 100% cash (liquid) margin Not specified 25% of regular charges with min. Rs. 500/-
5 Confirmation of LC As applicable to opening of LC As applicable to opening of LC
 

Inland Letter Of Credit

S.N Head Existing charges Revised / Charges
6 AMENDMENT
3A. Increase in value /amount of LC

3B. Extension of validity period

3C. Other amendments
Both usance and commitment charge on amount so increased with minimum Rs. 100/- extension may be allowed free of commitment charges if such an extension does not run into fresh period of 3 months , otherwise a fresh charge of 0.20 % for further period of 3 months with minimum Rs. 100/- Flat commission of Rs. 100/- Both usance and commitment charge on amount so increased with minimum Rs. 500/-

extension may be allowed free of commitment charges if such an extension does not run into fresh period of 3 months , otherwise a fresh charge of 0.25 % for further period of 3 months with minimum Rs. 300/-

Flat commission of Rs. 500/-
7 Advising of LC(including letters of authority , orders to negotiate)

Advising Amendment
0.05% of each LC with minimum Rs. 100/- if such LC does not carry confirmation Rs. 100/- per amendment 0.05% with minimum Rs. 500/- and maximum Rs. 5000/- if such LC does not carry confirmation

Same as above
8 Transfer of LC(Whether full or in part or whether endorsed on credit itself or not) Rs. 100/- per transfer except when the name of the beneficiary is changed under instruction from opening bank.

These charges are on account of first beneficiary unless otherwise specified. On LC calling for usance drafts drawn and accepted by banks , a commission @ 0.20% p.m. with minimum Rs. 100/- shall be levied. If beneficiary refuses to pay, then same shall be collected from applicant of credit
Rs. 500/- per transfer except when the name of the beneficiary is changed under instruction from opening bank.

These charges are on account of first beneficiary unless otherwise specified. On LC calling for usance drafts drawn and accepted by banks , a commission @ 0.20% p.m. with minimum Rs. 500/- shall be levied.

If beneficiary refuses to pay, then same shall be collected from applicant of credit
 

Inland Letter Of Credit

S.N Head Existing charges Revised / Charges
9 Negotiation Charges (a) for bills upto Rs. 2.50 lac 0.05 %

(b) Bills above Rs. 2.5 lac 0.05 % with min. Rs. 1000/- and max. Rs. 10000/- plus discount at applicable rate of interest from date of negotiation to date of disbursement
(a) for bills upto Rs. 2.50 lac 0.40 %

(b) Bills above Rs. 2.5 lac 0.30 % with min. Rs. 1000/- and max. Rs. 10000/- plus discount at applicable rate of interest from date of negotiation to date of disbursement
10 Acceptance charges --- An acceptance commission of 0.30 % with a minimum of Rs. 300/-
11 Out of Pocket expenses such as postages, telegrams, telexes, cables, swift etc From beneficiary unless otherwise specified From beneficiary unless otherwise specified
12 Guaranteeing discrepancies in documents negotiated under LC

Refund of Payment under Reserve
0.25% with minimum Rs. 100/- where payment received under reserve is credited to beneficiary account. However no such charges is levied , if amount received under reserve , on request of customer, is not parted with by the Bank The Bank will pay the negotiating bank the face value of the bill along with interest at commercial rate of the negotiating bank plus charges. Interest /charges , if any, would be for customers account 0.25% with minimum Rs. 100/- where payment received under reserve is credited to beneficiary account.

However no such charges is levied , if amount received under reserve , on request of customer, is not parted with by the Bank

The Bank will pay the negotiating bank the face value of the bill along with interest at commercial rate of the negotiating bank plus charges. Interest /charges , if any, would be for customers account
 

Inland Letter Of Credit

S.N Head Existing charges Revised / Charges
13 Clean Payment Received Under LC Flat charges of Rs. 100/- shall be levied by beneficiarys bank for receiving and crediting clean payment to beneficiary account. Flat charges of Rs. 250/- shall be levied by beneficiarys bank for receiving and crediting clean payment to beneficiary account.
14 Attestation of Commercial invoice subsequent to negotiation Rs. 10-/- per invoice with minimum of Rs. 20/- for each attestation Rs. 20 per invoice . Minimum Rs. 50/-
15 Service Tax and Education Cess To be Recovered on chargeable amount To be Recovered on chargeable amount
16 Genera 1. Commission to be charged on opening/amendment of LC and no refund is permitted under any circumstances whatsoever.

2. All charges in respect of advance bills and/or bills under LC are on account of applicant

3. When inland LC opened by a Bank is advised/ confirmed by its own branch, the advising/ confirming branch shall not be entitled to advising /confirmation commission.

4. If collecting bank is not the negotiating bank, then charges as applicable to collection of bills be levied by the collecting bank
1. Commission to be charged on opening/amendment of LC and no refund is permitted under any circumstances whatsoever.

2. All charges in respect of advance bills and/or bills under LC are on account of applicant

3. When inland LC opened by a Bank is advised/confirmed by its own branch, the advising/ confirming branch shall not be entitled to advising /confirmation commission.

4. If collecting bank is not the negotiating bank, then charges as applicable to collection of bills be levied by the collecting bank
 

Part C 

Bank Guarantee Issuance /Renewal Charges

S.N Head Existing charges Revised / Charges
1 Performance BG Rs. 100 plus 2 % p.a. or part thereof
WITH MIN. Rs. 100/- plus charges applicable for six months
Rs. 250/- plus 2 % p.a. or part thereof
WITH MIN. Rs. 250/- plus charges applicable for six months
2 Other than Performance Rs. 100 plus 3 % p.a. or part thereof
With min. Rs. 100/- plus charges applicable for six months No refund for un-expired period even if purpose of G.B issued gets fulfilled earlier
Rs. 250/- plus 3 % p.a. or part thereof
With min. Rs. 250/- plus charges applicable for six months No refund for un-expired period even if purpose of G.B issued gets fulfilled earlier
3 BG at 100% liquid margin 25% of charges at sr. no. 1 or 2 above. Rs. 250/- plus 25% of charges at sr. no. 1 or 2 above.
4 Letter of Comfort --- Backed by 100% discharge of liability(viz cash margin, sanctioned term loan, guarantee of first class bank, 100% lien on drawing power) 1.0% p.a.

Others-2.% p.a.

Subject to min. charges for 3 months
5 Exercise of Swing Option --- 0.02 % of amount involved , subject to a minimum of Rs. 500/- and a max. of Rs. 2500/-(no authority has been vested with discretion to reduce this service charge)
6 Refund No refund for un-expired period even if purpose of G.B issued gets fulfilled earlier No Refund for un-expired 6 months thereafter 50% refund for every full quarter.
7 Extension of validity Period --- Same charges as is levied at the time of issue of BG.
8 Remittance charges on invocation Remittance charges on invocation No Charges
 

Part D 

Processing/Upfront Charges

S.N Head Existing charges
1 Fund based limit/loan upto Rs. 25000/- Nil
2 Fund based limit/loan above Rs. 25000/- and upto Rs. 2.00 lac (including Real Estate Sector) Rs. 400/-
3 Exposure above Rs. 2.0 lac

other than to Real Estate Sector

  • W.C. Funded/Non-funded
  • Term Loans above Rs. 2.0 lac upto Rs. 50 lac
  • Term loans above Rs. 50 lac
  • Blue Chip Companies with minimum credit rating of AAA
  • Central/State govt. PSUs
050% with minimum of Rs. 500/- with no cap.at the time of sanction/renewal every year

1.00%(New Borrower)
0.75%(5 yr. Old Borrower)
050%(20 yr old Borrower)
(fee for reviewal*)

1.00% (New Borrower)
0.75%(5 yr. Old Borrower)
0.50%(20 yr old Borrower)
(fee for reviewal)*

0.10% with no cap.

0.10%
4

Exposure above Rs. 2.0 lac to Real Estate Sector

  • W.C. funded/non-funded above Rs. 2.0 lac and upto Rs. 50.0 lac
  • W.C. funded/non-funded above Rs. 50.0 lac
  • Term loan above Rs. 2.0 lac and upto Rs. 50 .0 lac
Rs. 500/- per lac or part thereof with no cap

1.0% with no cap and 50% of applicable charges on renewal every year

1.00% (New Borrower)
0.75% (5 yr. Old Borrower)
050% (20 yr old Borrower)
(fee for reviewal)*

1.00% (New Borrower)
0.75%(5 yr. Old Borrower)
0.50%(20 yr old Borrower)
(fee for reviewal*)
5 Consortium/ Multiple Banking Arrangement In case of consortium accounts fee to be charged in line with other banks. If other banks are charging higher fee same is to be charged by our Bank.

*Fees for reviewal of Term loans outstanding of Rs. 10 lac and above to be charged @ 0.05%.without any cap on every reviewal. However no processing fees to be charged in case of PSUs and for Systematically Important NBFCs with external rating of A and above from accredited rating agencies.

Inland Letter Of Credit

S.N Head Existing charges
6 Agriculture Advances except IRDP (i)Advances under a Scheme- as per scheme
(ii)Other Advances- 0.50% on total project outlay on one time basis
(iii)Advances to Weaker section -Nil
7 Advances against Deposits , Govt. Securities, Mutual Fund Units, UTI units, NSCs, KVPs and staff loans of any type. Actual out of pocket expenses at the time of noting of lien/collection of proceeds plus Rs. 25/- per security certificate with min. Rs. 100/-
8 Adhoc Sanction/Temporary Limits Normal charges
9 PMRY/SGSY/Other Govt. Schemes Service charges as per scheme
10 In principle sanction 10% of normal charges upfront, 15% of normal charges on in-principle sanction

75% of normal charges at the time of issue of regular sanction.
11 For schemes where refinance is obtained Service charges as per scheme
12 Recovery of Processing/Upfront fee

New business Group: Rs.50,000 to be charged upfront for each NBG proposal which will be adjustable against processing fees on regular sanction. In case the proposal is declined by the Bank, the same to be refunded

All cases including NBG: On regular sanction/enhancement of credit limits (FBWC/NFBWC/Term Loan), 50% processing fees to be charged before release of sanction/enhancement and remaining 50% to be charged before disbursement of credit facility.

 

 

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