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RATES OF INTEREST ON LOANS & ADVANCES - with effect
from 01.04.2009
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Click here to have a
QUICK GLANCE on INTEREST RATES & CHARGES on Deposits , Advances & Services
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RETAIL LENDING SCHEMES
CHART-I - Various RETAIL LENDING Schemes
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CHART-II
PART A
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Priority Sector Advances
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PART E -
Export Credit
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PART F -
Advances against Term Deposits
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Vijaya Bank’s Special Festive Offer for Home Loans & Vehicle Loans
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Interest Rates & Processing Charges SLASHED as a “Special Festival Offer”
during the period from 14.9.09 to 15.01.2010.
THE OFFER IS NOW EXTENDED UPTO 31.03.2010
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The highlights of the “Special Festival Offer” are as follows:
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The reduction in Interest rate & Processing Charges is applicable
only to Fresh Loans sanctioned during the period including take over of loans.
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The ‘Fixed Interest Option’ is introduced up to loan tenure of 20
years, with reset clause at the end of /on completion of every 3 years period.
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Graded interest rate slab is introduced with attractive interest rate
during the initial 5 years period.
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The Maximum quantum of loan under V-Wheel scheme is restricted to
Rs. 25 lakh only during this Special Festival Offer period.
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The Revised interest rate on V-Home & V-Wheel loan schemes are detailed
below:
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A : Special Interest Rate for V-Home Loan borrowers:
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Loan Period
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Loan up to Rs. 30 lakh
(% p.a.)
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Above of Rs. 30 lac & up to Rs. 1 crore ( % p.a.)
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I -Floating Rate Option
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1
st year
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8.00
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8.50
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2
nd & 3
rd year
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9.25
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9.75
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4
th & 5
th year
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9.50
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10.00
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After 5 years & up to
20 years
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BPLR-2.25% with a minimum of 10%
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BPLR-1.75% with a minimum of 10.5 %
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II-
Fixed Rate Option -
up to 20 years
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10.75%
with interest reset at the end of every 3 years period
from the date of first disbursal/availment of loan as decided/fixed by the Bank.
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11.50%
with interest reset at the end of every 3 years period
from the date of first disbursal/availment of loan as decided/fixed by the Bank.
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III
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V-Niwas Loan
Scheme
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Loan up to Rs. 5 lakh (inclusive of Rs. 5 lakh)
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Above Rs. 5 lakh to Rs.20 lakh (inclusive of Rs. 20 lakh)
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1
st year
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8.00
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8.00
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2
nd - 5
th year
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8.5
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9.25
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After 5 years & up to
20 years
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Interest rate should be reset after 5 years from the date of drawal of the
first installment at the option of the borrower
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Interest rate should be reset after 5 years from the date of drawal of the
first installment at the option of the borrower
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B : Special Interest Rate for V-Wheel borrowers:
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Period
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4 wheeler/2 Wheeler
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1
st year
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8.5%
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2 - 5 years
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10%
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After 5 years
up to 6 years only
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10.5%
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Processing Charges:
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ONLY 50 % of the applicable Processing charges for
V-Home & V-Wheel loan schemes
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No processing charges
for V-Niwas loan scheme
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RATE OF INTEREST ON
RETAIL LENDING
SCHEMES
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with effect from 01.04.2009
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RETAIL LENDING SCHEMES:
CHART - I
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BPLR = 12.25 %
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Sl.
No.
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Schemes
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REVISED rate wef 1.4.09
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1
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V – Cash
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BPLR+1.50 = 13.75%
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For women beneficiaries including working women
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BPLR+1.00 = 13.25%
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For marriage and purchase of consumer durables
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BPLR+1.50 = 13.75%
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For Pensioners
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BPLR+0.50 = 12.75%
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For V-Shikshak borrowers
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BPLR+1.00 = 13.25%
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2
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V - Solar
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-for Lighting
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BPLR+0.50=12.75%
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-for Heating
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12.50%
(Refer HOC 156/07 dated 24.09.2007)
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3
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V – I P O
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If paid within 30 days= BPLR+0.50=12.75%
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If paid after 30 days to 36 months = BPLR+1.50=13.75%
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For finance to employees to subscribe shares of their own companies
under ESOP/ IPO
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BPLR + 1.50 = 13.75%
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4
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V – Professional
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Rural/ Semi-urban : BPLR+0.50= 12.75%
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Others : BPLR + 1.50= 13.75%
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5
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V - Trade
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BPLR +1.75%= 14%
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6
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V-Wheels
(for individuals, corporate clients, partnership firms) (Repayable
within 5 years)
For V- Shikshak borrowers
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BPLR – 1 =11.25%
BPLR – 1 =11.25%
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7
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V – Equip
For V – Shikshak borrowers
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BPLR + 0.50 = 12.75%
BPLR=12.25%
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8
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V – Mortgage Loan
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BPLR + 2.50 = 14.75%
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9
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Educational Loan
(Irrespective of amount)
for girl students (0.50% interest concession for all fresh loans
w.e.f 01.11.08 to 31.12.10
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Irrespective of amount :
BPLR-1.25=11%
BPLR-1.75 = 10.50%
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10
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Jewel Loan
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BPLR = 12.25%
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Agricultural loans
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As applicable to other Agricultural loans
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11
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V-Rakshak
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BPLR–0.50%=11.75%
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12
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V-Reverse Mortgage
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11.00% [Fixed]
(With reset clause once in every 5 years)
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13
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V Rent
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BPLR+ 1.50 = 13.75%
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14
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For Commercial Real Estate Loans* [other than V-Rent and Home
Loans]
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As per Risk Rating or BPLR + 2.50= 14.75% p.a. whichever is
higher
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15
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Small Road Transport Operators (SRTO)
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As applicable under MSE (Service)
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16
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VIJAYA HOME LOAN w.e.f. 1.4.2009
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Period
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For loans up to Rs 30.00 Lakh
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For Loans above Rs 30.00 Lakh
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Floating
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Fixed
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Floating
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Fixed
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Upto 5 years
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9.25%
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10.75%
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10.00%
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11.50%
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Above 5-10 years
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9.50%
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No fixed
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10.25%
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No fixed
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Above 10 to 15 years
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9.75%
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No fixed
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10.50%
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No fixed
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Beyond 15 to 20 years
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10.00%
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No fixed
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10.75%
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No fixed
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VIJAYA NIVAS SCHEME
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SCHEME WILL IN FORCE UPTO 31
ST DECEMBER 2009 ONLY
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Particulars
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Rate of interest
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For First 5 years from the date of loan
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For the next period upto 20 years
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Loans with amount sanctioned upto Rs.5.00 lakhs
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8.50% p.a
(FIXED)
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subject to reset (at Fixed or Floating rate at the option
of the borrower)
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Loans with amount sanctioned above Rs.5.00 lakhs to Rs.20
lakhs
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9.25% p.a
(FIXED)
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RETAIL LENDING SCHEME: CHART-II
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PRIORITY SECTOR ADVANCES
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[Existing loans and advances [floating] linked to BPLR
should be
reduced by 0.50% wef 1.4.09 across the board]
BPLR = 12.25% p.a
THE FLOATING RATE LOANS ARE THOSE LINKED TO BPLR FROM TIME TO
TIME
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1)
Agriculture
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(a)
Crop Loans
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ROI p.a
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Upto Rs.3.00 lakhs
(Under 3% interest subvention
scheme.*)
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7% (Fixed
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Above Rs.3.00 lakhs
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BPLR-1 =11.25%
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*Interest rate for crop loan upto Rs. 3 lakh disbursed from
01.04.2008 and to be charged at 7% p.a. only, in view of the 3% interest subvention scheme. Even if
the loan sanctioned/ disbursed is above Rs.3 lakhs, interest at 7% p.a. shall be charged for amount
upto Rs.3 lakh and at BPLR–1% =11.25% for amount above Rs.3 lakh. For Kharif
crops (loans disbursed from 1.4.09 to 31.9.09) interest subvention is available for a period of
nine months from the date of disbursement or date of repayment or 31.3.2010 whichever is
earlier. For Rabi crops (loans disbursed from 1.10.09 to 31.3.10) it is available
for aperiod of 9 months or date of repayment or 30.6.2010 whichever is earlier.
If the loans are not repaid after 9 months by 31.3.2010 for Kharif
crops and by 30.6.2010 for Rabi crops applicable ROI as shown below to be charged.
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Upto Rs.50000/-
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9.25% (Fixed)
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Above Rs.50000 upto Rs.2
lakh
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BPLR-2
=10.25%
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Above Rs.2 lakh upto Rs.3 lakh
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BPLR-1
=11.25%
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(b)
Other Short Term Loans and Term Loans
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Upto Rs.50000/-
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9.25% ( Fixed)
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Above Rs.50000 upto Rs.2
lakh
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BPLR-2
=10.25%
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Above Rs.2 lakh
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BPLR-1
=11.25%
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Note: In case of Tractor loans financed under MOU, henceforth,
there will
not be any
concession of 0.50% below the above mentioned applicable slab rates on account of on the
board reduction in rate of interest.
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(c)
Loans granted through Societies
Loans
routed through PACS/LAMPS/FSS
irrespective of repayment period and size of
the
loan.
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BPLR-0.50% =11.75%
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Note:
Broader guidelines on charging and compounding of interest rates on
agricultural advances have been reiterated vide HO Circular No. 158/2006 dated 28.08.2006. However,
the salient features are furnished in
Annexure
to this Circular.
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2)
For SGSY loans
: (Term Loans- 5 years to 9 years)
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Irrespective of activity financed and irrespective of Individual or
Group.
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Upto Rs.
50,000
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8.75%( Fixed)
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Above Rs.
50,000
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9.00%(
Fixed)
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3)
For Vijaya General Credit Card
(VGCC):
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Vijaya General Purpose Credit Card
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(HOC No. 71/2008 dated 13.05.2008)
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9.25% (Fixed)
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4)
for Self Help Groups
(SHGs):
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Bank to SHGs/
JLGs
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BPLR-2.00 =10.25%
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Bank to NGOs /
VAs for on-lending to SHGs/ JLGs
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BPLR-0.50 =11.75%
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6)
MICRO MEDIUM AND SMALL ENTERPRISES (MSME)
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(A)
Micro Manufacturing Enterprises
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(Where investment in Plant and Machinery does not exceed
Rs.25 lakh)
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Sanctioned Limit
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ROI
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Loans upto Rs.50000/-
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BPLR-2.75 =
9.50%
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Above Rs.50000 upto Rs.2 lakh
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BPLR-2.25 =10.00%
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Above Rs.2 lakh upto Rs.25 lakh
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BPLR-1.00 =11.25%
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Above Rs.25 lakh upto Rs.50 lakh
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BPLR-0.50 =11.75%
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Above Rs.50 lakh upto Rs.1 crore*
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BPLR
=12.25%
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Above Rs.1 crore to Rs.10 crore
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BPLR+0.50 =12.75%
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(B)
Micro Service Enterprises
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(Includes
SRTO/ Professional/ Self-employed/ Small Business and
other service enterprises. Where the investment in equipment does not exceed
Rs.10 lakh)
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Limit
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ROI
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Loans upto Rs.50000/-
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BPLR-2.25 =10%
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Above Rs.50000 upto Rs.2 lakh
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BPLR-1.75 =10.50%
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Above Rs.2 lakh upto Rs.25 lakh
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BPLR-0.25 =12.00%
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Above Rs.25 lakh upto Rs.50 lakh
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BPLR
=12.25%
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Above Rs.50 lakh
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BPLR+0.50 =12.75%
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(C)
Small Manufacturing Enterprises :
(Where investment in plant and machinery is above
Rs. 25 lakh but upto
Rs.5 Crore.)
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Limit
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ROI
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Loans upto Rs.50000/-
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BPLR-2.25 = 10.00%
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Above Rs.50000 upto Rs.2 lakh
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BPLR-1.75 =10.50%
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Above Rs.2 lakh upto Rs.25 lakh
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BPLR-0.25 =12.00%
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Above Rs.25 lakh upto Rs.50 lakh
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BPLR
=12.25%
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Above Rs.50 lakh upto Rs.1 crore*
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BPLR+0.50 =12.75%
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Above Rs.1 crore to Rs.10 crore
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BPLR+1.00 =13.25%
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(D)
Small Service Enterprises :
(where investment in equipments is
above Rs.10 lakh & upto Rs. 2 crore)
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ROI
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Loans upto Rs.50000/-
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BPLR-1.75 =10.50%
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Above Rs.50000 upto Rs.2 lakh
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BPLR-1.25 =11.00%
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Above Rs.2 lakh upto Rs.25 lakh
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BPLR
=12.25%
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Above Rs.25 lakh upto Rs.50 lakh
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BPLR+0.50 =12.75%
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Above Rs.50 lakh upto Rs.10 crore
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BPLR+1.00 =13.25%
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7)
For other categories of Priority sector
other than (1) to (5) above and other than Housing
& Education (both
for working capital inclusive of bills facility
and term loans)
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For limits upto & inclusive of Rs.2.00 lakhs
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BPLR
=12.25%
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Above Rs.2.00 lakhs & inclusive of Rs.25 lakhs
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BPLR+1 =13.25%
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Above Rs.25 lakhs
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BPLR+1.50 =13.75%
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NON PRIORITY SECTOR ADVANCES
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WORKING CAPITAL LIMITS (INCLUDING BILLS) AND TERM LOANS WITH AGGREGATE LIMITS OF ABOVE
RS.2.00 LAKH
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Medium & Large Industries including Medium Enterprises [MEs]
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Medium Manufacturing and Service Enterprises
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(Manufacturing enterprises
: Where investment in Plant & Machinery exceed Rs.5.00 crore but
upto Rs.10.00 crore;
Service enterprises
: where investment in equipment exceeds Rs.2.00 crore but upto Rs.5
crore)
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Limit
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ROI
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Loans upto Rs.2 lakh
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BPLR
=12.25%
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Above Rs..2 lakh upto Rs.1 crore
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BPLR+1 =13.25%
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Above Rs.1 crore and upto Rs.10 crore
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BPLR+2.00 =14.25%
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Above Rs.10 crore
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BPLR+3.00 =15.25%
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All other Non-priority loans and advances
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This includes premises loans to Landlords of Branch premises,
Pronote loan*/ Clean Loan, Non Priority Transport Operators.
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Also for Pronote Loans [Non-priority] upto and inclusive of Rs.2
lakh.
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As per Risk Rating [wherever applicable]
OR
BPLR+3 = 15.25%
[wherever Risk Rating is not applicable]
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For term loans exceeding 5 years other than to
Agriculture/ MSE/ Retail Advances/ Staff loans.
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0.25% to be added as ‘term premium’ besides risk premium (interest computed based on risk
ratings).
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PART C
Advances to Sick Industrial Units
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Non-MSE units
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As per HO Circular 67/95 dt.10/4/1995
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MSE units
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As per HO Circular 92/2002 dt.05.8.2002
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Please refer Chart IV of Delegated powers (HOC 44/2008 dated 01
st April 2008 in respect of Delegated Powers for granting concessioal rate of interest
to Sick Industrial Units.
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PART D
DISCOUNT ON BILLS COVERED BY LC (BDLC)
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(exclusively for Borrowers enjoying sanctioned Bill Discount Limit)
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Tenor
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rate
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DA upto 90 days
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BPLR-3.25 =9.00% p.a.
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Above 90 days to 180 days
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BPLR-2.75 =9.50% p.a.
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The ROI quoted earlier for the tenor above 180 days upto 270 days
stands withdrawn with immediate effect.
The ROI quoted earlier for discounting of bills other than under LC
stands withdrawn with immediate effect
. BD under LC is taken up as a composite limit and higher limits are
approved only at HO level.
Hence, interest applicable to working capital limits are to be applied.
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For concessions if any, the matter may be referred to the Competent
Authority at Head Office.
Note
:
- The rates stipulated shall be for inland bills limit and not for
foreign bills which are guided by separate guidelines.
- The tenor of the bills discounted shall be generally for maximum
period of 90 days. Based on the assessment, Regional Managers can approve maximum tenor up to 180
day’s period. The competent authority to approve bills of tenor exceeding 180 days shall be General
Manager, Credit (C&I), HO and above as per extant delegated powers.
- Bills drawn on/accepted by Co-operative Banks shall not be
discounted. Similarly, branches shall not discount bills drawn against Letter of Credit issued by
Co-operative Banks.
- There shall not be any cap on the aggregate amount of bills
discounted and such exposure ceiling shall not be there in respect of bills drawn under Letter of
Credit/accepted by any PSU Banks, ICICI Bank, HDFC Bank, Axis Bank. In respect of other Scheduled
Commercial Banks, a system will be put in place to monitor the exposure ceiling and necessary
guidelines will be issued.
- Bills discount limit (L.C/ Non-L.C) is permitted only to borrowers
with assessed working capital limit. In case bills drawn under L/C of Prime Banks of non-borrower
constituents of the Bank is permitted upon assessment (say in the case of restricted L/C on our
Bank), it shall be ensured that the proceeds are remitted directly to the account of the
beneficiary’s bank’s account or the main/Lead Bank on the written request from the
party.
- Bills discounted shall be on account of genuine trade transaction and
accommodation bills/service agencies bills shall not be discounted/ purchased.
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PART- E
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EXPORT CREDIT
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(1) PRESHIPMENT CREDIT – (RUPEE )
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Upto 270 days or due date whichever is earlier
*
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BPLR–2.50 =9.75%
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Against incentives receivable from Government subject to availability
of ECGC cover upto 90 days
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BPLR–2.50 =9.75%
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Advances as above for the period beyond 270 days or the due date
(whichever is earlier).
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BPLR+2.00 =14.25%
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(2) POST SHIPMENT CREDIT – (RUPEE )
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Against D.P Bills – Rupee Credit
a) For Transit Period (NTP)
b) Beyond transit period
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BPLR–2.50 =9.75%
BPLR + 2 =14.25%
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Against Usance Bills – Rupee Credit (up to notional due date
comprising of NTP, Usance Period and grace period as applicable/ actual due date, whichever is
earlier with permitted tenor in force upto 30
th April 2009)
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a) For first
180 days *
b) For periods beyond
180 days but up to six months from the date of shipment*.
c) For periods beyond
six months from the date of shipment*.
d)
Upto 365
days
OR the working capital cycle whichever is least, for exporters under the Gold Card
Scheme*.
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BPLR–2.50 = 9.75%
BPLR –1 = 11.25%
BPLR + 2 = 14.25%
BPLR-2.50 =9.75%
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*
However, the maximum period allowed in individual cases shall be
based on working capital cycle and concessional sub-BPLR rate will be available only for
the normal working capital cycle or the permitted period as stipulated above, whichever is
least. If the advance is outstanding beyond the normal stipulated period, interest at BPLR+2=14.25%
p.a shall be charged in such cases. If the advance is outstanding beyond 360 days, interest at
BPLR+2=14.25% p.a will be applicable right from day one of advance.
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Note : Interest Subvention Scheme on Rupee Export Credit to certain specified Categories of Exporters is extended upto
30/9/2009 .
1. The Government of India has decided to extend Interest Subvention
of 2 percentage points w.e.f. December 1, 2008 till Sept 30, 2009 on pre and post shipment rupee
export credit, for certain employment oriented export sectors as under:
(i) Textiles (including Handloom), (ii) Handicrafts, (iii) Carpets,
(iv) Leather ( (v) Gems and Jewellery (vi) Marine Products, and (vii) Small & Medium
Enterprises
2. As per the existing guidelines, banks charge interest
rate not exceeding BPLR minus 2.5 percentage points on rupee pre-shipment credit up to 270 days and
post-shipment credit up to 180 days. Banks will now have to charge interest rate not exceeding BPLR
minus 4.5 percentage points on pre-shipment credit up to 270 days and post-shipment credit up to
180 days on the outstanding amount for the period December 1, 2008 to Sept 30, 2009 to the above
mentioned sectors. However, the total subvention will be subject to the condition that the interest
rate, after subvention will not fall below 7 per cent which is the rate applicable to
the agriculture sector under priority sector lending.
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Other Post-shipment advances against incentives receivable from
Government and covered by ECGC guarantees/ un drawn balances/ retention money (for supplies portion
only) payable within one year from the dates of shipment/ Duty Draw Back receivable (financed
otherwise than under Duty Draw Back Credit Scheme – 1976)
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a) For
first 90 days
b)
Beyond 90 days upto one year
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BPLR–2.50 =
9.75%
BPLR+2.00
=14.25%
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(3) PRE-SHIPMENT – FOREIGN CURRENCY
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Packing Credit – Foreign Currency
a) For the agreed period – upto 180 days
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350 basis points over LIBOR/ EURIBOR/ EUROLIBOR
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b) For agreed period – beyond 180 days upto 360 days
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Rate for initial period of 180 days prevailing at the time of
extension plus 200 basis points
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c) For advances crystallized
|
Interest as applicable to packing Credit (rupee) from the date of
crystallization.
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Beyond 180 days to be permitted on case to case basis by the
Sanctioning Authority.
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(4) POST-SHIPMENT – FOREIGN CURRENCY
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(4) POST-SHIPMENT – FOREIGN CURRENCY
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Against DP Bills/Usance Bills – Foreign Currency Credit
a) On demand bills for transit period (as specified by
FEDAI)
b) Usance bills (for total period comprising usance period of export
bills, transit period as specified by FEDAI and grace period wherever applicable) Up to 6 months
from the date of shipment
c) Export bills (demand or usance) realised after due date but up to
date of crystallisation
d) For Bills crystallised (as per FEDAI rules)
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350 basis points over LIBOR/ EURIBOR/ EUROLIBOR
350 basis points over LIBOR/ EURIBOR/ EUROLIBOR
Rate as per 8(a) or 8(b) above plus 200 basis points
Interest to be charged from the date of the crystallization as
applicable to Post shipment Rupee Credit as prevailing as on the date of crystallisation.
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NOTE : PLEASE NOTE THAT FOREIGN CURRENCY DENOMINATED PRE-SHIPMENT AND
POST-SHIPMENT ADVANCES [PCFC/ BPFC/ BDFC] SHALL BE ALLOWED ONLY WITH THE APPROVAL OF GENERAL
MANAGER [CREDIT – C&I] & GM [IBD] HEAD OFFICE.
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(5) EXPORT CREDIT NOT OTHERWISE SPECIFIED
(vide H.O Circular No.86/2000 dt.8/4/2000)
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a) Pre-shipment credit (Also applicable for pre-shipment advances not
liquidated within 360 days from the date of advance till the date of closure, even when they are
repaid in the prescribed manner).
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BPLR + 2 = 14.25% OR rates as charged to the working capital limits +
2% whichever is higher, from the date of advance.
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b) Post-shipment credit (Also applicable for post-shipment advances not
liquidated;
( i) upto 180 days from the date of
advance
till the date of closure, even when they
are
repaid in the prescribed manner).
(ii) beyond 180 days from the date of advance
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BPLR- 2.50= 9.75% OR rates as charged to the working capital limits +
2% whichever is higher.
BPLR+2=14.25% OR rates as charged to the working capital limits+2%
whichever is higher.
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(6)
ALL TYPES OF EXPORT CREDIT LIQUIDATED FROM
LOCAL SOURCES
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From the date of advance
till date of closure :
a. Pre-shipment credit
b. Post-shipment credit
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BPLR +2 = 14.25% OR rates as charged to the working capital
limits + 2% whichever is higher.
BPLR + 2 = 14.25% OR rates as charged to the working capital limits +
2% whichever is higher.
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(7)
DEFERRED CREDIT
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BPLR + 1.50 = 13.75%
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PART F
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ADVANCE AGAINST TERM DEPOSITS
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INTEREST ON LOANS AGAINST DOMESTIC TERM DEPOSITS
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Sl.
No.
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Particulars
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Margin on amount of deposits
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Rate of interest
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i.
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LTD against own domestic deposits
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Minimum 15%
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2% above the Deposit rate
|
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LTD against own domestic deposits
[for Staff and Ex-staff]
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Minimum 10%
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1% above the Deposit rate
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ii
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LTD against own domestic deposits as CC (M) limit
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Minimum 15%
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2% above the Deposit rate
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iii
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Loan against own JND balances
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Minimum 20%
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At BPLR from time to time (12.25% presently)
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iv
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All advances against third party deposits
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Minimum 15%
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Rate applicable relevant to the borrower with a minimum of BPLR from
time to time (12.25 presently)
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INTEREST ON LOANS AGAINST NON RESIDENT TERM DEPOSITS
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NON RESIDENT EXTERNAL DEPOSITS (NRE)
|
|
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Margin
|
Rate
|
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i. Advances to depositors against their own
deposits
ii. Advances to residents against third party deposits
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10%
10%
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1.50% above the interest rate payable on deposits.
Upto Rs.2 lakhs
: 2% above the interest rate payable on the deposit OR 2% below BPLR,
whichever is higher.
Above Rs.2 lakhs
:
Personal purpose
:
2% above the interest rate payable on the deposit OR 1% below BPLR,
whichever is higher.
Business
:
2% above the interest rate payable on the deposit OR BPLR whichever
is higher.
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FOREIGN CURRENCY NON RESIDENT [FCNR (B)] DEPOSITS :
|
|
|
Margin
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Rate
|
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i. Advances to depositors against their own
deposits.
ii. Advances to residents against third party
deposits
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15%
15%
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BPLR – 2 = 10.25%
Upto Rs.2 lakhs
: 2% above the interest rate payable on the deposit OR 2% below BPLR,
whichever is higher.
Above Rs.2 lakhs
:
Personal purpose
:
2% above the interest rate payable on the deposit OR 1% below BPLR,
whichever is higher.
Business
:
2% above the interest rate payable on the deposit OR BPLR whichever
is higher.
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Branches/ ROs are advised not to grant fresh loans or renew existing
loans in excess of Rs.20 lakh against NR(E)RA and FCNR(B) deposits, either to depositors or to
third parties. It is further directed that branches should not undertake artificial slicing of the
loan amount to circumvent the ceiling. [Refer HOC No.26/07 dated 9.2.07]
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In all the above cases, the branches should ensure the
following:
(a) Prompt recovery of interest debited to the loan account on monthly
basis and
(b) The outstanding liability in the account is not allowed to exceed the
value of the deposit at any point of time.
Note
:
With regard to margin in all the above cases, Regional Heads have powers to approve
reduction subject to maintenance of minimum margin of 10%. Concession if any, in interest rate
shall be approved only by the Chairman and Managing Director or by Executive Director in the
absence of CMD. |
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PART G
For certain specified categories
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(irrespective of the quantum of the loan and repayment period)
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1.
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Loans on the security of IVPs/ KVPs/ NSCs/ Units/ Capital Investment
Bonds/ SV of life insurance policies.
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BPLR =12.25%
|
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2.
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Adhoc sanctions (other than export credit facilities)
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1% above the rate applicable
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3.
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a. Interest on all advances of temporary nature such
as Current Account TODs and excess drawings in the sanctioned limits/
DP, drawals against instruments sent in clearing, etc. (irrespective of the rate of interest for
regular limit).
b.Overdrawing due to credit card transactions in
Savings/Current/Overdraft/Cash Credit and other operative accounts (Ref. HOC 137/2006)
c.
In case of card holders opting for revolving credit:
(i ). On the revolving credit balance retained at CCD HO
(ii) After transfer of liability to the Branch
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BPLR+4=16.25%
27% p.a (i.e. 2.25% per month)
21% p.a
27% p.a
|
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4.
|
Overdue/ returned unpaid bills, invoked BGs, defaults under DPG/Bills
co-acceptance, devolvement under Inland & Foreign Letters of Credit.
|
BPLR+4=16.25%
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5
.
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PENAL INTEREST:
a) For Priority Sector advances upto Rs.25,000/-
b) For Priority Sector Advances above Rs. 25,000/- and all other
Advances [including Export credit not otherwise specified (ECONOS)], overdue/ overdrawn loan
accounts and excess over sanctioned limits outstanding beyond the stipulated time and for
non-submission/ delayed submission of stock statements/ QIS statements/ renewal proposal/ diversion
of funds/ non adhering lending discipline etc. as per H.O Circular No.67/2000 dated
21/3/2000.
c) Levy of commitment charges for under utilization of limits, i.e. in
case of consortium advances, as per the consensus arrived at the consortium and in case of
facilities extended by us, if the under-utilisation in the limit is beyond the tolerance level of
50%, as per H.O Circular No.96/05 dt.04.06.05 and 213/05 dated 07.12.05 [Also refer H.O. Cir
No.22/07 dated 2.2.07]
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Nil
2%
1%
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6.
|
Maximum applicable rate of interest including penal interest (other
than Credit card overdrawings)
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BPLR+6=18.25%
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PART H
APPLICABLE RISK BASED PRICING
|
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Above 90.01% scoring
|
BPLR
=12.25%
|
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Above 80.01 to 90%
|
BPLR +1.00 =13.25%
|
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Above 70.01% to 80 %
|
BPLR+1.25 =13.50%
|
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Above 60.01% to 70 %
|
BPLR+1.50 =13.75 %
|
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Above 45.01% to 60%
|
BPLR+2.00 =14.25%
|
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Upto & below 45%
|
BPLR+3.00 =15.25%
*
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* Proposals not to be entertained.
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NOTES
:
1. In respect of existing loans sanctioned specifically under fixed
rate, there will not be any change in the interest rates across the board and the existing rate of
interest shall continue to be charged
till closure of such loans / till reset.
2. Pricing guidelines laid down in Lending Policy and Risk Rating Matrix
as approved by Risk Management Committee should be complied with in all cases.
3. As existing in respect of fresh term loans with repayment period beyond five years, additional
interest of 0.25% p.a shall be chargeable as term premia besides risk premium (interest computed
based on risk ratings) other than to exempted advances where HO has specified interest rates, such as to
Agriculture/ SMEs/ Retail advances/Staff loans.
4. The applicable rate of interest (fixed/floating) as well as the
foreclosure charges (wherever applicable) as per HOC 157/2008 dated 21.10.2008 should be clearly
and correctly stipulated in the loan sanction communication to the borrower as well as in the loan
documents.
5. In respect of all loans except the exempted category, interest should
be charged and compounded on monthly basis as conveyed in HOC 12/2003 dated 30/1/2003 in terms of
RBI guidelines.
6. Documentary bills purchased are to be treated as overdue only after
10 days from the date of purchase (inclusive of grace days) and overdue/penal interest should be
charged only from 11
th day. However, if bills returned unpaid or reimbursed by the borrower themselves/
overdue interest should be charged from the date of purchase till the date of recovery. In
respect of DA bills, it has to be reckoned overdue from the due date of payment of the bill and
overdue/ penal interest should be charged from the date of purchase of the bill till the date of
recovery if the bills are returned unpaid/ regularized by the borrower themselves.
7. In respect of Loans & Advances where a slab rate system is
applicable, for fixation of correct rate of interest, the size of the loan and the system of
aggregation of liabilities, as dealt with in HOC 174/96 dt.3.10.96 to be followed along with the
following guidelines:-
a. Loans under Schematic Lending (Retail Lending Schemes) and
against Term Deposits
should not be aggregated.
b. In respect of crop loans upto Rs.3 lakh, interest should be
charged at 7% p.a. only
without any aggregation.
c. In case a farmer who has been sanctioned a crop loan of Rs.3
lakh, has subsequently sought another crop loan facility of Rs.2 lakh, the interest rate for crop
loan of Rs.3 lakh should continue to be at 7% p.a. only. However, the interest rate for the crop
loan of Rs.2 lakh should be based on aggregation of crop loans and the applicable interest rate
should be charged only for the crop loan of Rs.2 lakh. In this case, the interest to be charged on
the crop loan of Rs.2 lakh should be 11.75% p.a. (BPLR-0.50%)
d. A crop loan of Rs.3 lakh has been sanctioned to a farmer.
Subsequently, a term loan of Rs.2 lakh has been sanctioned to him. In this case, the interest rate
to be charged on the crop loan of Rs.3 lakh should be 7% p.a. only. However, the interest rate to
be charged on the term loan of Rs.2 lakh should be 10.75% p.a. (BPLR-1.50%), based on
aggregation.
8.
Computation of interest on monthly compounding basis in all
advances:
Herein-after, all sanctions shall stipulate without any ambiguity the
mode of charging and compounding interest on monthly basis as against earlier practice of charging
interest at quarterly rests except for Agricultural advances. Detailed guidelines for
charging/ compounding of interest for agriculture advances are furnished in the Annexure.
Also, the borrower should be intimated specifically mentioning the annualized interest rate
in which case also interest at monthly discounted rates (effective rate) are to be collected at
monthly intervals.
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ANNEXURE - 2
GUIDELINES ON CHARGING AND COMPOUNDING OF
INTEREST RATES ON AGRICULTURAL ADVANCES
(as per RBI guidelines)
(A).
Guidelines on charging interest rate on agricultural advances:
(1).
Payment of interest should be insisted upon,
only at the time of repayment of loan / instalments so fixed i.e. coinciding with
the due dates i.e. interest should be demanded at the time of repayment of principal in the case of
crop loans, and along with the instalment in the case of term loans.
(2).
In the case of direct agricultural advances,
interest on crop loans (i.e. Vijaya Kisan Card / Vijaya Planters Card /
Agricultural Cash credit/ Vijaya Krishi Vikas)
and instalments
not falling due in respect of term loans should not be compounded. In other words,
interest on
current dues should not be compounded.
Only overdue portion can be compounded. Current dues mean the principal / instalment which
has not become due for payment.
(3).
When crop loans or instalments under term loans
become overdue
, banks can add interest outstanding to the principal and compound the interest. However,
total interest debited to an account
should not exceed the principal amount in respect of
short term advances to
small and marginal farmers.
(4).
No penal interest should be charged for all Priority Sector loans including
Agricultural loans upto Rs.25,000/=. For limits over Rs.25,000/=, the aggregate penal / additional
interest should not exceed 2% over and above the rate of interest applicable / normally charged to
the borrowers.
(5).
In respect of loans above Rs.25000/=, penal interest should be charged
only on the
overdue portion and not on the balance outstanding.
(B).
Charging of interest under VKC and Modified Vijaya Krishi Vikas:
Guidelines on charging of interest rates for loans sanctioned under Vijaya Kisan
Card Scheme have been stipulated vide HO Circular no:1/99 dated 01-01-1999. However, the salient
features are reproduced below for ready reference:
The rate of interest will be the same as applicable to crop loans. The interest rate
shall be fixed based on the total card limit fixed for which the card is issued and this rate shall
be entered in all the loan documents.
However, the interest rate shall be charged on the basis of the operative limit fixed for
each year. The operative limit may vary depending upon the cropping pattern; change in
scale of finance etc., and as and when the operative limit undergoes change, the rate of interest
may also undergo a change depending upon the slab rate.
The same procedure may be followed for operative limits sanctioned under Modified Vijaya
Krishi Vikas for crop loans upto Rs.3 lakh.
(C).
Periodicity of Charging & Compounding Interest rates on Direct Agricultural
advances:
Guidelines regarding charging and compounding of interest rates on crop loans and
term loans are as follows:
(i).
Crop loans:
Guidelines for charging and compounding of interest rates for crop loans
(1).
In respect of advances for cultivation of
short-duration crops, interest shall be debited and compounded at
half-yearly rests, as on the last reporting Friday of
September and March and the same may be compounded, if not paid.
(2).
In respect of cultivation of
long-duration crops, interest may be debited at
annual rests as on last reporting Friday of March and
compounding in such cases shall be done at
annual rests.
(3).
In respect of such of those cases, where the borrowers approach for financial
assistance for cultivation of
both short-duration and long-duration crops, the periodicity of debiting interest,
i.e.
half-yearly or yearly shall be decided based on the
major crops cultivated.
(4).
Long-duration crops are those crops with crop season longer than one year; crops
which are not long-duration crops, would be treated as short-duration crops.
(ii).
Investment credit and Allied activities:
Guidelines for charging and compounding of interest rates for investment loans (term
loans) and loans to allied activities are as follows:
(1).
In respect of
term loans to Agriculture, the periodicity of debiting interest and compounding
the same i.e., half-yearly or annually shall be decided
based on the duration of the crops cultivated (i.e., short duration or annual
crops) and compounded.
(2).
In respect of
allied activities, interest shall be debited and compounded at
half-yearly rests.
(iii).
Collection of Interest during moratorium /gestation period in respect of Agricultural
Development loans:
As regards collection of interest during the moratorium period, depending upon the
income stream of the activity, and if the income is not generated during the moratorium/gestation
period requiring capitalization, this aspect should be clearly brought out in the sanction
communication letter by the sanctioning authorities.
Besides, sanctioning authorities should also specifically mention the periodicity of
debiting interest and compounding the same in the sanction communication.
(D).
Periodicity of Charging and compounding of interest rates on Indirect Agricultural
Advances:
Interest on all Indirect Agricultural Advances shall be charged on monthly basis
except the following;
(1) Loans to PACS/LAMPS/FSS - Quarterly rests but not to be
compounded.
(2) Loans granted for Agriculture and allied activities to Corporates/Partnership
Firm and institutions, 2/3 of loans in excess of Rs.1 crore in aggregate per borrower is treated as
indirect Agriculture, the charging and compounding of interest for entire loan should be half
yearly or yearly as applicable to Direct agricultural advances referred as B(i) & (ii), as the
case may be.
(3) Loans to Agri-clinics/Agri-business
- Quarterly rests
(4) Loans under VGCC Scheme under
Financial inclusion
-
Half yearly
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