Credit (Except Schematic MSME Retail & Agriculture Credit)

SECTION C-CREDIT

(EXCEPT RETAIL & AGRICULTURE/ SCHEMATIC MSME ADVANCES)

S No

Particulars

Charges

1. INLAND LETTER OF CREDIT

1.1

Opening Charges (per LC)

Opening charges 1.00% per annum.

(Charges for the period of liability from the date of opening of credit to the last date of opening of Credit to the last date of its validity @ 0.25% for every period of 3 months or part thereof with minimum of ₹ 500/-.

Usance Charges 2.00% per annum.

(For the usance period for complete month or part thereof. In case of Sight bills/usance for less than 1month, minimum 1month charges @ 0.1675%, minimum ₹ 1000/-.

1.2

Charges for Confirmation of LC

Normal charges as mentioned in Para 1.1

1.3

Revolving Letter of Credit

Normal charges as mentioned in Para 1.1 to be applicable both at the time of opening and on reinstatement.

1.4

Advising of LC charges

Retirement charges:

@ 0.10% per Bill, maximum ₹1000/- .

1.5

Charges for discrepant documents negotiated/ discounted by our bank under LC opened by our Bank or any other bank

Flat 0.30% subject to minimum of ₹3000/- (If payment received and credited to beneficiary account).

1.6

Attestation Charges for Certificates/ Commercial Invoices

₹100/- per invoice on each occasion; (When the beneficiary asks for attestation of commercial invoice at the time of negotiation/collection, such attestation, may be done free of charge; however, if the beneficiary ask for attestation of invoices on a subsequent occasion then prescribed charges should be levied on each and every occasion if it is found necessary to do so.)

1.7

Transfer Charges for Transferable LC

₹ 1000/- Flat for each transfer

The transfer charges shall be levied on the account of first beneficiary of the credit, unless otherwise specified.

1.8

Negotiating Charges For bills negotiated /discounted under L/C opened by our Bank or other bank

₹ 1000/- plus interest per bill at the applicable rate of interest from the date of negotiation to the date of reimbursement of funds to the bank.

1.9

Amendment Charges

1.10

Charges for Letter of Credit based on Liquid Margin

1.11

Postage / Out of Pocket Expenses

Postages/Courier ₹ 200/-.

All out of pocket expenses shall be collected from the beneficiary, unless otherwise specified.

2. INLAND BANK GUARANTEE

2.1

Bank Guarantees

Renewal of Guarantee

Same as applicable for issuance of fresh guarantees except that the claim period be not charged if the renewal is affected before the expiry date of the original guarantee.

2.2

Charges for Bank Guarantees based on Liquid Margin

2.3

Bank Guarantee Counter Guaranteed by Central Government/State Government/ ECGC/Scheduled Commercial Bank having Minimum required Regulatory CRAR including CCB

50% of normal commission applicable on Bank Guarantee up to the extent of counter guarantee amount. Normal charges on guarantee amount not covered by counter guarantee.

2.4

Commission for Stand by LC (SBLC)

Commission at par with Financial Bank Guarantee shall be charged.

3. PROCESSING FEE (EXCLUDING SCHEMATIC MSME/RETAIL CREDIT/ AGRICULTURE CREDIT)

3.1

For Fund Based/Non Fund Based Working Capital Advances (Fresh/Renewal/Enhancement)

Expenses other than Process Fees (i.e. CIC/CERSAI/Insurance, etc.) shall also be borne by the borrower.

NOTE:

• Processing fee on setting up of limits for discounting of bills backed by ILCs of PSBs/ approved banks on standalone basis shall be charged @ 25% of the card rates applicable on working capital finance, subject to a minimum of ₹ 500/-.

CONSORTIUM ADVANCES: As decided in Consortium meeting or leader bank.

ENHANCEMENT: As per normal rates mentioned above in Para 3.1 and pro rata for the relevant period so as to coincide with the expiry date of original limit.

3.2

ADHOC Sanction

• 150% of normal charges mentioned above in Para 3.1 on the amount of ADHOC are to be charged on pro-rata basis for the period for which the ADHOC Sanction has been permitted to the borrowers.
• Additional interest of 2% shall be charged on ADHOC granted.

3.3

Annual Review for 6 months/ Extension of validity of sanction / Short review

Up to ₹10/- lakh- Normal charges

Above ₹10/- lakh– 150% of Normal charges

(The above clause shall be part of process note and sanction letter.)

3.4

Recovery of Process Fee

Recovery of process fee should NOT be insisted upfront in following cases and collected on conveying sanction:

• MUDRA /MSME loan up to ₹10/- Lakh
• Loan under Government Sponsored Scheme

Process Fee/Upfront Fee for Conveying NBG Approval if the proposal is approved in NBG meeting, charges of ₹ 2.00 lakh should be recovered by branch from the customer while conveying NBG approval and if:

1. Regular proposal is sanctioned and the limit has been availed/ disbursed, the recovered amount of ₹ 2.00 lakh should be adjusted towards upfront/ processing fee.
2. Regular proposal has been sanctioned but the limit is not disbursed the amount of ₹2.00 lakh should not be refunded.
3. Regular proposal is not presented within 6 months amount of ₹2.00 lakh should not be refunded.
4. Regular proposal is declined, 50% of the amount i.e. ₹1.00 lakh should be refunded.

• Such charges should be conveyed to the customer before placing the proposal in NBG. In case of syndication assignments, the pricing is not to be disclosed, till mandate is received.
• Amount of ₹2 lakh to be adjusted while recovering balance 50% of processing /upfront fee at the time of disbursement.

4. UPFRONT FEE FOR FRESH TERM LOANS / REVIEW OF TERM LOANS

4.1

Upfront Fee - Term Loans (Including DPG)

Upfront Fee - Term Loans (Including DPG)

*Expenses other than Upfront fee (i.e. CIC/ CERSAI/ Insurance etc.) shall be borne by the borrower.

4.2

Annual Review Charges for Term Loan

(applicable for the sanction after 01/10/2017)

5. COMMITMENT CHARGES

5.1

Fund Based and Non Fund Based Limit

1. FOR FB+NFB LIMITS OF ABOVE ₹ 1.00 CRORE:

Commitment charges shall not be levied in cases where existing/prospective borrowers have executed documents containing the required clause for unconditional cancellation (UCC) of limits. Operative limit if fixed on the basis of QRS/FFS form, shall be reckoned for calculating the commitment charges.

In case of partly drawn Term Loan, commitment charges to be levied irrespective of the fact whether the borrower has executed the necessary documents containing unconditional cancellable limit clause or not.

For FUND BASED Limit including TERM LOANS:

Unutilized portion in case of industries financed under monthly cash budget should be arrived at with reference to average utilization during the month and the monthly operative limit.

2. FUND BASED WORKING CAPITAL LIMIT OF ₹ 150.00 CRORE AND ABOVE FROM THE BANKING SYSTEM: Irrespective of whether unconditionally cancellable or not.

For FUND BASED Limit including TERM LOANS:

FOR NON-FUND BASED LIMIT: NFB Facilities of the above class of borrowers will be subjected to Commitment Charges as detailed at A above.

#All unrated claims on Corporates, AFCs and NBFC-IFCs having aggregate exposure from banking system of more than ₹.100.00 crore which were rated earlier and subsequently have become unrated will attract a risk weight of 150%.

NOTE:

1. CONSORTIUM ADVANCES: Charges as decided in Consortium meeting or leader bank. The quantum of charge should accordingly be determined by each member bank with reference to the operative/sanctioned limit allocated to it.
2. MULTIPLE BANKING ARRANGEMENTS: The charge should be determined by each bank based on the limits sanctioned by it.
3. TERM LOAN

1. Where the draw down is made in stages as approved by the bank, the commitment charges shall be computed on the undrawn portion reckoned with respect to the relative draw down limit fixed for the period and not with reference to the total limit.
2. In case of partly drawn term loans where no specific draw down schedule has been prescribed/borrower has not adhered to the specific draw down schedule, the commitment charges at aforesaid rates shall be levied on entire undrawn portion.

4. Commitment charges are to be recovered on quarterly basis

5.2

Exempted Cases for Levying Commitment Charges

1. FB + NFB limits of ₹ 1.00 crore and below
2. Working capital limits sanctioned to sick/weak units/ Export Credit
3. Credit limits granted to commercial banks, financial institutions and co-operative banks including land development banks.
4. Inland bill limits extended by way of bills purchased / discounted or overdraft / cash credit limit / sub-limit against bills for collection

Advance against units of LIP/Mutual Funds / NSCs / KVP/ IVP/ UTI/ Govt. Securities/Shares

1. Up to ₹ 1.00 lakh: Nil
2. Above ₹ 1.00 lakh to ₹ 1.00 crore: @0.25% (Max ₹ 25000.00/-)
3. Above ₹ 1.00 crore @ 0.25% Min- ₹25000/- Max.₹ 100000/-

This fee is only one time/ first sanction not applicable on Renewal.

Advance against Bank’s own time deposit Receipts

NIL

6. DOCUMENTATION CHARGES

6.1

Documentation Charges  (Fund Based)/ (Non-Fund Based)

• In case of enhancement of the facility, Documentation Charges shall be levied on enhanced portion only.
• Renewal/Review of limits: NIL
• Retail/Schematic Lending: As per scheme
• Loan Against 100% Liquid Securities (i.e. Bank’s own deposit/ NSC/ LIP, etc.): NIL

CONSORTIUM ADVANCES: Documentation charges shall be applicable in line with Consortium.

DOCUMENTATION CHARGES ON ADHOC: At par of normal documentation charges

7.  INSPECTION /SUPERVISION CHARGES

7.1

Inspection/ Supervision Charges

CONSORTIUM ADVANCES: As per decision taken in consortium meeting. However, if there is no decision in consortium meeting in respect of Inspection Charges, charges to be levied as per Para above.

8. LEAD BANK CHARGES

8.1

Lead Bank Charges where our Bank is the Lead Bank Under Consortium

9. TECHNO-ECONOMIC VIABILITY (TEV) STUDY CHARGES

TEV Study charges:

The charges of the Consultants shall have to be borne by the concerned borrower and the loan applicant should be clearly informed of the same. Moreover, the payment to the Consultant should be made by the Bank directly and TEV study should be conducted at the instance of the Bank and not at the request of the borrower.

The fee structure as approved by the Bank’s Board payable to the consultant is as under:

TEV Vetting Charges

Charges for vetting of TEV study shall be 50% of applicable TEV appraisal charges as mentioned above.

10. OTHER SERVICE CHARGES

10.1

Purchase / Discount of Bills / Cheques / Drafts

In addition to above charges, discount/interest* at applicable rate plus out of pocket expenses if any will be charged.

*For Borrowal Accounts– Rate of interest applicable for WC advance to the respective borrower.

For Non-Borrowal Accounts– Rate of Interest applicable to Clean OD.

10.2

Charges for Amendments / Modifications of Accepted Sanction Terms

0.02% of loan amount (Minimum ₹ 1000/- and maximum ₹ 5.00 lakh)

10.3

Revalidation of Sanction

50% of applicable Process Fee; subject to Max ₹ 2.50 lakh

10.4

Issuance of NOC for All Types i.e., Ceding First / Second Charge / Other Purpose

0.05% of limit, Min. ₹ 2000/- Max. ₹ 50,000/-

However, the same shall not be applicable to consortium banking arrangement

10.5

Issuance of Solvency Certificate (Non Commercial / Commercial)

0.10% of certificate amount with a minimum of ₹1000/- and maximum ₹25000/-.

NOTE: Any additional certificate issued within a period of 3 months of issuance of 1^st solvency certificate, only 50% of the applicable charges shall be levied.

10.6

Issuance of Any Other Certificate i.e. No Dues, Balance Confirmation, Maintenance of Account, etc. on Behalf of Our Clients as well as Clients Referred by Other Banks Other than for Govt. Sponsored Schemes

10.7

Fee For Opening / Operating TRA / ESCROW Account

10.8

Charges for Copy of Documents for Submission to Any Statutory Authority by the Borrower

10.9

Providing Credit Information / Opinion Including Introduction in case of Borrowal Accounts if Provided on Request of the Borrower

₹ 1000/- per occasion

10.10

Registration of Power of Attorney

10.11

Handling Charges

Wherever full waiver of Processing fee or Upfront fee is permitted, ‘Handling Charges’ @ ₹ 15.00 per Lakh or part thereof, subject to maximum of ₹ 1.00 lakh are to be recovered from borrowers availing limits of ₹ 1.00 crore & above, separately in lieu of Processing fee & Upfront fee.

10.12

Loan / Debt Syndication and Project Appraisal Charges

10.13

Fee for Underwriting Assignments

@ 0.25% of the total debt be recovered at the time of conveying our sanction. This fee is to be recovered over & above the syndication fee of 0.50% of total debt as mentioned above.

10.14

Additional Jobs/ Responsibilities on Behalf of Lender Banks, in respect of All Term Loans Sanctioned under Consortium/ Syndication/Multiple Banking Arrangement, Involving Total Term Loan Component of      ₹ 5.00 crore and Above

10.15

Processing Charges/ Upfront Charges/ Other Charges etc. for Advances to Honourably Retired Employee

50% of applicable charges in respect of Honourably Retired Employees of our bank/ Widows of Honourably Retired members of Staff.

NOTE: The term Retired Employee includes the employees retired honourably or leaving bank’s service including voluntary retirement or otherwise but does not include an employee retired compulsorily or in consequences of disciplinary action.

10.16

Pre-Payment / Foreclosure of Loan in Case of Take Over i.e. Loan is Prepaid by the Non-Individual Borrower for Shifting to Other Bank / FI

Pre-payment charges @ 4% of the pre-paid outstanding amount. However, no prepayment charges are to be levied in the following cases:

• MSE Borrower
• Floating rate term loan (Non Business) sanctioned to Individual Borrower.
• Loans sanctioned at fixed rate with reset clause, if the borrower exercises his option for floating rate interest at the time of reset.
• Where the loans are prepaid by the borrowers from their own sources 
• Where the borrower shift to other bank within 30 days from the date of issuance of circular for upward revision in the rate of interest to be charged in his account or change in other terms of sanction.
• Where the closure of loan is on the instance of the Bank on account of size of irregularity, possibility of default in future or any other technical or other specific reasons.

10.17

Additional Rate of Interest and Penal Charges

10.18

Concession Amount to be Recovered in Case of Takeover of the Account

In case of account is being taken over by the other bank/FI, in addition to levying prepayment charges, all the concession/relaxation/waiver in the service charge, ROI etc. granted since last sanction/review/renewal of the facility or sanction accepted by the borrower with such clause, whichever is earlier, in the account shall be withdrawn and respective amount shall be recovered from the borrower. The same clause shall invariably be incorporated in the sanction letter & acceptance of borrower in this regard shall be obtained & kept on record.

11. MISCELLANEOUS EXPENSES

11.1

Out of Pocket Expenses

All out of pocket expenses such as Registration / Modification /Satisfaction of charges shall be collected from the beneficiary, unless otherwise specified.

11.2

Credit Information Report (CIC) Charges (i.e. TU CIBIL, CRIF High Mark, Experian, Equifax)

11.3

NeSL Charges

11.4

CERSAI Charges

11.5

LSR / NEC Charges

*Plus actual out of pocket expenses to be recovered from borrower.

11.6

Mortgage Charges

11.7

VALUATION FEES

A)Valuation fees for property including Machinery - Retail/Agriculture advances:

B)  Valuation of properties for other than Retail/Agriculture advances – Including Plant & Machinery

11.8

Levy of Cash Order / Draft / RTGS / NEFT Charges While Disbursing Term Loan

While issuing instruments for remittance of funds directly in favour of supplier, for disbursement of term loan, no charges are to be recovered for issuance of Pay Order/Draft/RTGS/ NEFT/other mode.

12. CONCESSIONAL/ EXEMPTED CATEGORIES

12.1

Loyalty Bonus To Privileged Borrower

• Loyalty Bonus: 25% concession in applicable service charges by respective sanctioning authority to Privileged Borrower.

Definition of Privileged Borrower:

Existing borrower of our bank availing business loan for last 10 years under sole / Multiple / Consortium banking with satisfactory conduct* of account.

*Satisfactory Conduct of the account means:

• Internal rating of the borrower is not below CBI 4 since last 3 years
• Borrower does not fall under SMA-1/SMA-2 category since last 3 years.
• Borrower was not in NPA category since inception.

NOTE:

1. Concession to Privileged Borrower shall not be applicable in following cases:

• Concession already given under any schematic/customized loan scheme
• Retail Loans
• Any concession already given by respective/higher sanctioning authority

12.2

Concession to MSME Borrower in case of Applications Received through PSB Online Portal

20% Concession in Processing/ Upfront fee will be given in case of applications received through PSB online portal in respect of MSME category of borrowers to promote the digital platform (i.e. psbloansin59minutes.com which promotes the automation and digitization of various processes of Business Loan).

12.3

Other charges for using services of PSB loans portal

Actual charges for utilising other services of the portal viz. digital monitoring etc. are to be recovered from the customers.