Interest Rates - Loans and Advances

Interest Rate Effective From 1st Ashwin, 2077 (17th September, 2020)

A. For individual borrower availing Term Loan (repayment period above 1 year)

CREDIT FACILITIES FIXED INTEREST RATES (in %)
           

REPAYMENT PERIOD

FLOATING INTEREST BAND (if opted by the borrower)
Upto 3 years Upto 5 years Upto 10 years Above 10 years
Housing Loan (upto 1 cr.) 10.98% 11.98% 13.48% BR+2.00% to BR+5.00%
Housing Loan (above 1 cr.) 11.48% 12.48% 13.98% BR+2.50% to BR+5.00%
Hire Purchase 10.73% 11.48% 12.48% BR+2.50% to BR+5.00%
Vehicle Loan 10.73% 11.48% 12.48% BR+2.50% to BR+5.00%
Education Loan 10.98% 11.73% 12.73% BR+2.75% to BR+4.00%
Flexi Loan-TL 12.23% 12.98% 13.98% BR+4.00% to BR+5.00%
Professional Loan 10.98% 11.73% 12.73% BR+2.75% to BR+4.00%
Future Lease Loan 10.98% 11.73% 12.73% BR+2.75% to BR+4.00%
Retail Space Loan 10.98% 11.73% 12.73% BR+2.75% to BR+4.00%
Loan against consumable goods 10.98% 11.73% 12.73% BR+2.75% to BR+4.00%
Loan against Pension 10.48% 11.23% BR+2.25% to BR+4.00%
Advance against Life Insurance Policy 10.98% 11.73% 12.73% BR+2.75% to BR+4.00%
Agro Loan 10.23% 10.98% 11.98% BR+2.00% to BR+4.00%
Deprived Sector (Others) 10.98% 11.73% 12.73% BR+2.75% to BR+4.00%

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%
Retail Loans under Tie Up Arrangement As per Tie Up Arrangement
Advance against Life Insurance Policy BR+2.75% to BR+4.00%
Finance against Salary to Confirmed Permanent Staff BR+3.00% to BR+4.00%
Finance against Salary to Confirmed Permanent Staff under Tie Up Arrangement As per Tie Up Arrangement

*subject to Internal Risk Rating

Fixed interest rates for Term Loan with repayment period above 1 year (other than mentioned above in case of individual) shall be applicable:

FIXED INTEREST RATES (in %)
PERIOD
Upto 3 years Upto 5 years Upto 10 years Above 10 years
applicable floating rate+0.75% (risk premium) applicable floating rate +1.50% (risk premium) applicable floating rate +2.50% (risk premium) applicable floating rate+4.00% (risk premium)

Borrowers other than individual can also opt for the above fixed rates for Term Loans with repayment period above 1 year.

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%

Notes:

  • Interest rates on consortium loans shall be as per consortium decision.
  • Penal interest @ 2.00% shall be applied on overdue amount/expired loan.
  • Risk premium of 2.00% p.a. may be charged for watch-list accounts.
  • Penal interest of 2.00% is to 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.