Credit Related Service Charges

Credit Related Service Charges


      a) Loan to Small and Medium Enterprises (Business Loan below Rs 500.00 lacs)

Working Capital (OD/TR/DL/STL) 0.75%
Term Loan (Other than Retail) 0.75%
Non Fund Loan 0.50%

    b) Other than Retail and SME Loan (NEW)

Working Capital Upto Rs. 500.00 lacs 0.75%
(OD/TR/DL/STL) 500.00- 1000.00 0.60%
Above 1000.00 0.25%
For Non Fund based limits Upto Rs. 500.00 0.50%
500- 1000.00 0.40%
Above 1000.00 0.25%
Term Loan Upto Rs. 500.00 0.75%
500- 1000.00 0.60%
Above 1000.00 0.25%

c) Retail Loan

Housing Loan/ Home Equity 0.75% of sanctioned loan
Vehicle Loan/ Two Wheeler/ HP loan (with 100% collateral)
Education Loan
All Other Schemes not covered above incl. FOD, FTL, HP loan (w/o collateral) etc.


Share Loan Upto Rs. 500.00 0.75% of sanctioned loan
Above Rs. 500.00 0.25% of sanctioned Loan
Charges for exposures to Government undertakings & PSUs (regular & adhoc FB & NFB limits) For Fund Based Limits 0.25% of sanctioned loan
For Non-Fund Based Limit 20% of the charges as applicable to fund based limits
Deprived Sector Lending  (direct lending) 0.10% however max. upto Rs. 5000.00
Advances against deposits, pension loans and government securities Nil
Loan against LIP 0.25%

d) Deprived Sector through MFIs

Fresh Sanction
Upto 1000.00 0.50%
Above 1000.00 0.30%


Agriculture Sector Lending  (Fresh Sanction)

Agriculture Sector Lending –  OD/TL/DL/TR 0.50%- Upto Rs. 100.00 Lacs

0.25%- above Rs.100.00 Lacs

  1. RENEWAL CHARGE : 20% OF APPLICABLE PROCESSING FEE (AS MENTIONED IN S.NO. -1 ) (Should not be more than 0.15% on any case)

In case of adhocs, the processing charges may be recovered as under:

Facility   Proposed
Fund Base Upto Rs. 500.00 lacs 0.50%
500.00- 1000.00 0.30%
Above 1000.00 0.25%
Non Fund Base 0.40%

Interchangeability/earmarking with the same account shall not attract the above charges.


For enhanced working capital limits, charges shall be levied as above (fresh sanction) on enhanced limit only and renewal charges will be levied on existing limits. 


No prepayment charge shall be levied on loan limit of Rs. 50.00 lacs. However, in order to dissuade the Borrowers from shifting to other banks, pre-payment charges shall be levied on the amount pre-paid in case of all Term Loans sanctioned as under:

  • 20% of applicable processing fee (As mentioned in S. No. -1) for loans swapped  to other banks((Should not be more than 0.15% on any case)
  • 20% of applicable processing fee (As mentioned in S. No. -1) for prepayment of loan. (Should not be more than 0.15% on any case)

However, no prepayment charges are to be levied in the following cases:

  • Where the loans are prepaid by the borrowers from their own sources due to change in upward revision in ROI;
  • Where the loans are prepaid by the borrowers due to change in terms of sanction from initial offered terms unilaterally by the banks,
  • Branches while conveying the sanction to the borrower(s) in respect of term loan sanctioned, should incorporate about the levy of pre-payment charges in the sanction letter itself.
  • Branches to ensure that term loan document should contain the clause to the above effect and in case the same is not available in the term loan document, supplementary agreement be obtained.

Commitment Charges on are to be levied on annual basis as under:

  • For all fund based working capital limits including Flexi OD limit, commitment charges as given below shall be charged on undrawn portion. 

Average Utilization Level Rate of Commitment Charges

Existing Charge
Average Utilization Level less than 60% 20% of applicable processing fee ( as mentioned on S. No. -1) (Should not be more than 0.15% on any case)
Average Utilization Level 60% & above Nil
  1. OUT OF POCKET EXPENSES (POSTAL, TELECOMMUNICATION & OTHERS e.g. travelling, consultant fee etc.):

Out of Pocket expenses if any, are to be recovered from the borrowers in addition to the processing fee/other fee in case such expenses relate to the post-sanction stage of the credit facilities granted to the borrowers.
Actual charges (rounded off to next higher rupee) to be recovered in full.

Bank shall not charge anything additional to the customers than its cost for out sourced services through other institutions e.g. CIC reports, Blacklisting, property valuations, insurance etc.