Interest Rates - Loans and Advances
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- Interest Rates – Loans and Advances
Interest Rate Effective From 1st Magh, 2077 (14th January, 2021)
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.) | – | 10.57% | 11.57% | 13.07% | BR+2.00% to BR+5.00% |
| Housing Loan (above 1 cr.) | – | 11.07% | 12.07% | 13.57% | BR+2.50% to BR+5.00% |
| Hire Purchase | 10.32% | 11.07% | 12.07% | – | BR+2.50% to BR+5.00% |
| Vehicle Loan | 10.32% | 11.07% | 12.07% | – | BR+2.50% to BR+5.00% |
| Education Loan | 10.57% | 11.32% | 12.32% | – | BR+2.75% to BR+4.00% |
| Flexi Loan-TL | 11.82% | 12.57% | 13.57% | – | BR+4.00% to BR+5.00% |
| Professional Loan | 10.57% | 11.32% | 12.32% | – | BR+2.75% to BR+4.00% |
| Future Lease Loan | 10.57% | 11.32% | 12.32% | – | BR+2.75% to BR+4.00% |
| Retail Space Loan | 10.57% | 11.32% | 12.32% | – | BR+2.75% to BR+4.00% |
| Loan against consumable goods | 10.57% | 11.32% | 12.32% | – | BR+2.75% to BR+4.00% |
| Loan against Pension | 10.07% | 10.82% | – | – | BR+2.25% to BR+4.00% |
| Advance against Life Insurance Policy | 10.57% | 11.32% | 12.32% | – | BR+2.75% to BR+4.00% |
| Agro Loan | 9.82% | 10.57% | 11.57% | – | BR+2.00% to BR+4.00% |
| Deprived Sector (Others) | 10.57% | 11.32% | 12.32% | – | 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.
Special Rates for Retail and SME Loan upto Chaitra End – 2077
| Credit Facility | Interest Rate |
| Housing Loan | BR+1%p.a. for 1st & 2nd year BR+2%p.a. from 3rd year onwards |
| Vehicle Loan (personal/official use, only with red number plate) | BR+1.50% p. a. |
| Motorcycle Loan | BR+2.50% p.a. |
| Flexi OD | BR+1.50% p.a. |
| Flexi Term Loan | BR+1.50% p.a. for 2 years BR+2.00% p.a. from 3rd year onwards |
| SME (OD/STL//DL/TR/TL) | BR+1% |
Processing fee for above loans (upto Chaitra – 2077) – 0.50% of loan limit
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.
