Interest Rates - Loans and Advances
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- Interest Rates – Loans and Advances
Interest Rate Effective From 1st Ashad, 2078 (15th June, 2021)
A. For individual borrower availing Term Loan (repayment period above 1 year)
|
CREDIT FACILITIES |
FIXED INTEREST RATES (in %) |
|||
|
REPAYMENT PERIOD |
FLOATING INTEREST BAND |
|||
|
Upto 7 Years |
Upto 10 years |
Above 10 years |
||
|
Housing Loan (upto 1 cr.) |
10.52% |
11.52% |
12.52% |
BR+2.00% to BR+5.00% |
|
Housing Loan (above 1 cr.) |
11.02% |
12.02% |
13.02% |
BR+2.50% to BR+5.00% |
|
Hire Purchase |
11.02% |
12.02% |
– |
BR+2.50% to BR+5.00% |
|
Vehicle Loan |
11.02% |
12.02% |
– |
BR+2.50% to BR+5.00% |
|
Education Loan |
11.27% |
12.27% |
– |
BR+2.75% to BR+4.00% |
|
Flexi Loan-TL |
12.52% |
13.52% |
– |
BR+4.00% to BR+5.00% |
|
Professional Loan |
11.27% |
12.27% |
– |
BR+2.75% to BR+4.00% |
|
Future Lease Loan |
11.27% |
12.27% |
– |
BR+2.75% to BR+4.00% |
|
Retail Space Loan |
11.27% |
12.27% |
– |
BR+2.75% to BR+4.00% |
|
Loan against consumable goods |
11.27% |
12.27% |
– |
BR+2.75% to BR+4.00% |
|
Loan against Pension |
10.77% |
11.77% |
– |
BR+2.25% to BR+4.00% |
|
Advance against Life Insurance Policy |
11.27% |
12.27% |
– |
BR+2.75% to BR+4.00% |
|
Agro Loan |
10.52% |
11.52% |
– |
BR+2.00% to BR+4.00% |
|
Deprived Sector |
11.27% |
12.27% |
– |
BR+2.75% to BR+4.00% |
|
Finance against Salary to Confirmed Permanent Staff |
11.52% |
12.52% |
BR+3.00% to BR+4.00% |
|
|
Finance against Salary to Confirmed Permanent Staff under Tie Up Arrangement |
As per Tie Up Arrangement |
|||
B. For “Others”:
|
CREDIT FACILITIES |
FLOATING INTEREST BAND |
|
WC-OD/ STL/ DL/ TR* |
BR+1.25% to BR+5.00% |
|
Term Loan (below 3 years)* |
BR+1.25% to BR+5.00% |
|
Term Loan (3 years & above)* |
BR+1.75% to BR+5.00% |
|
Margin Lending |
BR+2.75% to BR+5.00% |
|
Hire Purchase (other than individual) |
BR+2.50% to BR+5.00% |
|
Vehicle Loan (other than individual) |
BR+2.50% to BR+5.00% |
|
Flexi Loan-Overdraft (below Rs. 50 lacs) |
BR+3.25% to BR+5.00% |
|
Flexi Loan-Overdraft (Rs. 50 lacs and above) |
BR+3.75% to BR+5.00% |
|
Flexi Loan-TL (other than individual) |
BR+4.00% to BR+5.00% |
|
USD denominated FCY loan |
Linked with LIBOR as per tenure of facility subject to premium/ discount applicable |
|
FCY Loan against Sight LC |
6 months LIBOR+2.75% |
|
Loan against liquid assets (FDR, Govt. Bond/ National Saving Bond) |
2% above coupon rate |
|
Deprived Sector (MFI & NBFC) |
BR+2.25% to BR+4.00% |
|
Deprived Sector (Others) |
BR+2.75% to BR+4.00% |
|
Future Lease Loan |
BR+2.75% to BR+4.00% |
|
Retail Space Loan |
BR+2.75% to BR+4.00% |
|
Agro Loan |
BR+2.00% to BR+4.00% |
*subject to Internal Risk Rating
Further Borrowers other than individual can also opt for the fixed rates for Term Loans with repayment period above 1 year as under.
| FIXED INTEREST RATES (in %) | |||
| PERIOD | |||
| Upto 3 years | Upto 5 years | Upto 10 years | Above 10 years |
| applicable floating rate + 1.25% (risk premium) | applicable floating rate +2.00% (risk premium) | applicable floating rate +3.00% (risk premium) | applicable floating rate+4.00% (risk premium) |
Rating and applicable rates:
| S.No. | Score Band
(in %) |
Rating Grades | Corporate, SMEs & others (Rated accounts) |
| 1 | Above 80.00 | AAA | BR+1.25% |
| 2 | Above 77.50 up to 80.00 | AA + | BR+1.50% |
| Above 72.50 up to 77.50 | AA | BR+1.75% | |
| Above 70.00 up to 72.50 | AA – | BR+2.00% | |
| 3 | Above 67.50 up to 70.00 | A + | BR+2.25% |
| Above 62.50 up to 67.50 | A | BR+2.50% | |
| Above 60.00 up to 62.50 | A – | BR+2.75% | |
| 4 | Above 57.50 up to 60.00 | BB + | BR+3.25% |
| Above 52.50 up to 57.50 | BB | BR+3.50% | |
| Above 50.00 up to 52.50 | BB – | BR+3.75% | |
| 5 | Above 47.50 up to 50.00 | B + | BR+4.25% |
| Above 42.50 up to 47.50 | B | BR+4.50% | |
| Above 40.00 up to 42.50 | B – | BR+4.75% | |
| 6 | Above 30.00 up to 40.00 | C | BR+5.00% |
| 7 | 30.00 and below | D | BR+5.00% |
In order to remain competitive in the field of retail lending and direct deprived sector lending following relaxations are permitted:
• To tap retail business and to allow preferential interest rates for good retail customers, Branch Incumbents (not below the rank of AM) may offer concessions in outer band of published ROI (in case of HL, VL& Flexi loan) where loan is based on Rating Score Sheet which is as following:
|
Score |
Housing Loan |
Vehicle Loan |
Flexi Loan |
|
Minimum Score under Branch Power |
50 |
60 |
60 |
|
ROI |
|||
|
Above 90 |
1.25% below outer band |
1.00% below outer band |
1.00% below outer band |
|
Above 80 upto 90 |
1.00% below outer band |
0.75% below outer band |
0.75% below outer band |
|
Above 70 upto 80 |
0.75% below outer band |
0.50% below outer band |
0.50% below outer band |
|
Above 60 upto 70 |
0.25% below outer band |
0.25% below outer band |
0.25% below outer band |
• Where Loan to Value Ratio (Bank Value) in Housing Loan is below 0.50:1, Branch Incumbents (not below the rank of AM) may offer further concessions of 1% in outer band of published ROI over and above the above concession.
• Relaxation of 1% in ROI shall be extended to Senior Citizens, Dalit, Mukta Kamaiya, Baadi, Haliya, war victims, single women and disabled individuals under Deprived Sector Loan.
Notes:
• Interest rates on consortium loans shall be as per consortium decision.
• Penal [email protected]% shall be applied in irregular/watch-list/ NPA account.
• Penal interest of 2.00% shall be charged where audited financial statements are not submitted before Magh End of following financials year by those borrowers whose pricing is linked with Risk Rating.
• Fixed Interest rate will not be less than Base Rate at any point of time.
Base rate: Magh – 6.40%; Falgun – 6.21%; Chaitra – 6.10%; Average Base Rate of 6.24% will be applicable w.e.f 1st Baishak 2078 for all borrowers.
