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14802/CPRMD/2016-17/ 16
Date: 10-01-2017
Parameters
Overnight MCLR
1 month MCLR
3 months MCLR
6 months MCLR
1 yr MCLR
Existing
(w.e.f
10.10.2016)
9.15%
9.20%
9.25%
9.35%
9.45%
Revised
(10.01.2017)
8.15%
8.25%
8.45%
8.55%
8.60%
1. All rupee loans sanctioned and credit limits renewed w.e.f. April 1, 2016, except those for
which exemptions have been granted, are priced with reference to the MCLR which is the
internal benchmark for such purposes as against Base Rate / BPLR.
2. There will be no lending below the applicable MCLR except exempted category.
3. The actual interest rate charged to customers will be equal to the applicable MCLR plus
applicable spread.The applicable spread has been reset based on credit risk premium and
business strategy premium.
4. The interest rate will be linked to the one year MCLR unless specified otherwise in the
enclosed guidelines.
5. The MCLR prevailing on the date of disbursement will be applicable till next reset date
irrespective of change in the applicable MCLR during the interim period. The branches are
required to specify the interest reset date in the sanction letter. The reset date should be linked
to the date of first disbursement of the loan / credit limits.
Page 1
6.
The periodicity of reset of applicable MCLR shall be yearly. However, monthly / quarterly /
half-yearly reset of MCLR for a specific borrower can be permitted by the sanctioning
authority of FGMLCC and above.
7. Bank shall review the MCLR of different maturity from time to time. Bank reserves the right
to change the spread based on business strategy, market competition, embedded option in the
loan product, market liquidity, credit risk, collaterals, customer relationships etc.
8. The existing loan and credit limits linked to Base Rate/BPLR will continue till repayment or
renewal as the case may be. Existing borrowers will have the option to move to MCLR linked
loan at mutually acceptable terms. However, this should not be considered foreclosure of
facility.
9. In case of existing Term Loan linked with Base Rate, where the borrowers opt to move to
MCLR linked rate, a switchover fee @ Rs.10000.00 or 0.50% of the outstanding Term Loan,
whichever is higher, will be levied.
10. No fixed rate interest loan and loans linked to market determined external benchmark, be
sanctioned other than by Head Office or unless clearly specified under any scheme.
11. Fixed Rate Loans upto three years shall be priced with reference to applicable MCLR.
12. The reference benchmark rate used for pricing of loans along with reset frequency shall form
part of the terms of the loan contract.
13. In view of the foregoing, branches & offices are advised to adhere to the instructions
contained in this circular. The Banks comprehensive guidelines on interest rates on loans and
advances are being enclosed for meticulous compliance with immediate
14. In case of any clarification, Field functionaries are advised to contact Shri Ardhendu De,
AGM (IRM) (M: 9874121110) or Shri Deepak Goyal, CM (IRM) (M:9831430662) for
necessary guidance in this regard. Alternatively, mail can be sent to them on
ho.cprmd@allahabadbank.in.
Page 2
Subject
Comprehensive Guidelines on Interest rates on
loans and advances
Interest Rate Guidelines for MSME Sector
Interest Rate Guidelines for Agricultural Credit
and other Priority Sector Credit
Interest Rate Guidelines for Export Credit
Interest Rate Guidelines for General Advances
Interest Rate Guidelines for Retail Credit
Rate of interest in Staff Loan
Concession in rate of interest in various segments
Miscellaneous Issues
Appendix & Enclosures
List of Intermediary Agencies
Additional Interest/ Penal Interest
Format for Proposals for interest rate reduction in
the account
Key Fact Statement
Annexure
Page No.
B
C
17
20
D
E
F
G
H
I
23
26
33
38
39
48
Appendix I
Appendix II
Appendix III
49
50
52
Appendix IV
55
Page 3
Annexure- A
1. Comprehensive Guidelines on Interest rates on loans and advances:
1.1. General Parameters:
Sl. Parameters
Existing
(w.e.f
Revised (10.01.2017)
No
10.10.2016)
1
Banks Overnight MCLR
9.15%
8.15%
2
Banks 1 month MCLR
9.20%
8.25%
3
Banks 3 months MCLR
9.25%
8.45%
4
Banks 6 months MCLR
9.35%
8.55%
5
Banks 1 yr MCLR
9.45%
8.60%
6
Banks Base Rate
9.70%
No change
7
Maximum Spread
6.00%
7.10%
8
Maximum Lending Rate (MLR)
Bench
BR + 6.00%
Mark*+6.00%
MCLR+7.10%
9
Maximum Additional /Penal Rate
2.00%
10 Maximum chargeable rate to any customer BM+6.00%+2.00% MCLR+7.10%+2.00%
Banks BPLR
11 ( for existing customer who have not yet
13.95%
switched over to Base Rate)
0.50% relaxation in rate of interest subject to minimum of benchmark rate will be allowed
to Women Beneficiary under MSME category, Food & Agro Processing Units, Seed
12
processing Units and Girl Students under Educational Loan Scheme, subject to minimum of
One year MCLR.
13
Concession of 0.10% for accounts covered under CGTMSE, subject to minimum interest @
benchmark rate, may be permitted by field functionaries.
14
Any relaxation in rate of interest will be effective from the date of sanction/ approval.
Retrospective effect of reduction in rate of interest will be considered by HLCCGM and
above.
15
No foreclosure charges/ pre-payment penalties will be levied on all floating rate term loans
sanctioned to individual borrowers.
*Benchmark rate will be defined as the Base Rate/One Year MCLR, as the case may be.
1.2. Definitions:
RBI has issued Master Direction in regard to interest rate on advances. As per such direction, unless
the context otherwise requires, the terms herein shall bear the meanings assigned to them below a) Bench Mark Rate means the reference rate (BPLR, Base Rate, One Year MCLR) used to
determine the interest rates on loans.
b) External benchmark rate means the reference rate published by an independent benchmark
administrator.
Interest Rate on Loans & Advances
Page 4
c) Fixed rate loan means a loan on which the interest rate is fixed for the entire tenor of the loan.
d) Floating rate loans means a loan on which interest rate does not remain fixed during the tenor
of the loan.
e) Advance against own deposit means advance sanctioned against Rupee/ FCNR(B) term
deposit and deposit stands in the name of the borrower, either singly or jointly; one of the
partners of a partnership firm and advance is made to the said firm; the proprietor of a
proprietary concern and advance is made to such concern; a ward whose guardian is
competent to borrow on behalf of the ward and where the advance is made to the guardian of
the ward in such capacity.
f) Benchmark Prime Lending Rate (BPLR) means internal Benchmark Rate used to determine
the interest rate on advances/ loans sanctioned upto June 30,2010.
g) Rests refers to periodicity of charging interest to borrowers.
h) Term Loan means a loan repayable after a specified term period.
All other expressions unless defined herein shall have the same meaning as have been
assigned to them under the Banking Regulation Act, or any statutory modification or
enactment thereto or as used in commercial parlance, as the case may be.
1.3.
Internal Benchmark:
1.3.1. Base Rate
a) All rupee loans sanctioned and credit limits renewed after July 1, 2010 till 31.03.2016, are
priced with reference to the Base Rate which is the internal benchmark for such purposes,
unless switched over to MCLR.
b) Base Rate includes all those elements of the lending rates that are common across all
categories of borrowers.
1.3.2. Marginal Cost of Funds based Lending Rate (MCLR)
a)
b)
c)
All rupee loans sanctioned and credit limits renewed w.e.f. April 1, 2016 are priced with
reference to the Marginal Cost of Funds based Lending Rate (MCLR) which is the internal
benchmark for such purposes.
MCLR is the tenor linked benchmark MCLR of a particular maturity.
MCLR prevailing on the date of first disbursement, whether partial or full, shall be
applicable on the floating rate loan and future reset date/s will be determined accordingly.
Page 5
Reference Rate
1-Month MCLR
3-Month MCLR
6-Month MCLR
1 Year MCLR
Page 6
1.5. Objective
1.5.1. The objective of issuing comprehensive consolidated guidelines on interest rates is to
provide a single point reference to the field functionaries for smooth functioning of the
branches.
1.5.2. To ensure that correct interest is charged and occurrence of any instance of revenue leakage
is prevented.
1.5.3. It is also aimed at enhancing transparency in lending rates so as to avoid complaints from
credit customers.
1.6. Benchmark Rate and Spread:
1.6.1. All rupee loans sanctioned and credit limits renewed w.e.f. April 1, 2016 are priced with
reference to the MCLR.
Bank is having following five tenor linked MCLR as benchmark:
o Overnight MCLR,
o One-Month MCLR,
o Three-Month MCLR,
o Six Month MCLR,
o One Year MCLR.
In addition to the above, ALCO is empowered to publish MCLR of any other longer
maturity.
1.6.2. In case of existing loan the Benchmark will be Base Rate or BPLR as per transition from
BPLR/Base Rate to MCLR.
1.6.3. Spread under Base rate system
a) The credit risk premium charged to an existing borrower shall not be increased except
on account of deterioration in the credit risk profile of the customer or change in tenor
premium.
b) The stipulation will not be applicable to loans under consortium / multiple banking
arrangements.
c) The spread guidelines mentioned above shall not apply to loans granted under BPLR
system, which continue till date. Such loans shall be covered under the terms of the
loan agreements.
1.6.4. Spread under MCLR system
The broad component of spread under MCLR system are as under:
a) Business strategy: The component is arrived at taking into consideration the business
strategy, market competition, embedded options in the loan product, market liquidity of
the loan etc.
b) Credit risk premium: The credit risk premium charged to the customer representing the
default risk arising from loan sanctioned shall be arrived at based on an appropriate
credit risk rating / scoring model and after taking into consideration customer
relationship, expected losses, collaterals, etc.
c) The spread charged to an existing borrower shall not be increased except on account of
deterioration in the credit risk profile of the customer. Any such decision regarding
Interest Rate on Loans & Advances
Page 7
change in spread on account of change in credit risk profile shall be supported by a fullfledged risk profile review of the customer.
d) It is not applicable to loans under consortium / multiple banking arrangements.
1.6.5. Changes in the Benchmark Rate (One Year MCLR or Base Rate or BPLR) shall be
applicable in respect of all existing loans linked to the Benchmark Rate, in a transparent
and non-discriminatory manner.
1.6.6. Since transparency in the pricing of lending products has been a key objective, bank is
required to exhibit the information on its BR/ MCLR at all branches and also on its
website. Changes in the BR/ MCLR should also be conveyed to general public from
time to time through appropriate channels.
1.6.7. Interest rate for any category of borrower / loans stipulated by RBI which is linked to the
Benchmark Rate (One Year MCLR/BR) and/or fixed rate (DRI at 4.00% etc.), the Bank
will adhere to such prescribed rates.
1.6.8. Spread over Benchmark Rate (BR or One Year MCLR as the case may be) would be
7.10% over One Year MCLR or BR+6.00% at the maximum which will be the
Maximum Lending Rate (MLR).
1.6.9. Benchmark Rate will be uniformly applicable in all branches/offices of the Bank.
1.7.
1.7.1. No fixed rate interest loan and loans linked to market determined external benchmark, be
sanctioned other than by Head Office or unless clearly specified under any scheme.
1.7.2. The rate of interest on all accounts with working capital & term loan , which is not
specifically mentioned will be charged at @ One Year MCLR+5.10% (Base Rate+4%, if
applicable)
1.7.3. Bank will have the freedom to offer all categories of loans on fixed, fixed with reset,
floating or floating with reset clause as approved/decided by the ALCO/Board of Directors.
However, any revision of interest rates whether upwards or downwards, the effect of
revised interest rate (change in MCLR) will come into force from the date of benchmark
reset date. However, the change in MCLR will not be applicable on fixed rate loan or any
other loan which has been specifically exempted.
1.7.4. Bank may also use external or market -based benchmark interest rates for pricing of its
floating rate loan products subject to minimum of benchmark Rate. The rate of interest
which has been fixed with reference to Benchmark Rate (Base Rate or One year MCLR)
and/or market benchmark will be treated as floating rate.
1.7.5. Fixed Rate Loans upto three years shall be priced with reference to One Year MCLR.
1.7.6. In respect of fixed rate loans sanctioned with reset clause, the change in rate of interest will
take place only after the specified period for reset as per terms of sanction. For example, if
a loan is sanctioned at fixed Interest rate of 11.00 % with reset clause of two years, the rate
of interest can be increased/decreased after expiry of two years, say to 11.25%, 11.50%
(and so on) as per the decision of the sanctioning authority. However, under force
Interest Rate on Loans & Advances
Page 8
majeure clause, the Bank is authorized to raise fixed interest suitably & prospectively in
the event of major volatility in interest rates.
1.7.7. The spread charged to an existing borrower shall not be increased except on account of
deterioration in its credit risk profile of the customer. Any such decision regarding change
in spread on account of change in credit risk profile shall be supported by a full-fledged
risk profile review and internal rating of the borrower/customer. Provided that the
stipulation contained above shall not be applicable to loans under consortium/multiple
banking arrangements.
1.7.8. To hedge interest rate risk arising due to change in market dynamics, where rate of interest
has been fixed at a rate lower than the rate prescribed in the Banks Policy / guidelines, the
following conditions must be incorporated in the sanction letter i.e.
Competent authority has permitted concessions in interest rate to the extent of ..% with
the stipulation that effective minimum rate would be..%.
1.8. Charging of Interest:
1.8.1. Term Loans and Working Capital advances should be clubbed together for the purpose of
determining the loan and applicable rate of interest, except in cases specifically exempted
as per RBI / Bank guidelines.
1.8.2. Interest at monthly rests may be applied in case of Term Loans, Working Capital Limits,
Bills and other advances in accordance with the directives on interest rates on advances
issued by the Bank / Reserve Bank of India from time to time.
1.8.3. Charging interest at monthly rests shall not be applicable to agricultural advances for which
under noted norms would be applicable.
Bank would charge interest on agricultural advances for long duration crops at annual
rests.
As regards short duration crops and allied agricultural advances such as dairy, fishery,
piggery, poultry, bee-keeping cold storage, rural godown, warehouses etc. bank may take
into consideration due dates fixed on the basis of fluidity with borrowers and
harvesting/marketing season or on half yearly basis while charging interest. Compounding
of the same will be done if the loan installments become overdue.
On all other loans (Indirect Agriculture & MSME), interest will be applied at monthly
rests.
For Short Term Loans granted to small and marginal farmers (in case of crop loan up to 12
months & in case of other loans, loans having maturity up to 12 months), classified as
Standard Asset, the interest applied shall not exceed the principal amount. However, in
case of NPA, Suit Filed, OTS accounts, the notional interest rate will be continued to be
calculated, from the date of last charged interest in the account and kept in the Record
Section of NPA Ledger.
1.8.4. In case Education Loan, once the moratorium period is over, the entire outstanding along
with interest during moratorium, will be added back to principal amount and compounding
of interest will start at monthly rests and will continue till liquidation of the entire loan.
Page 9
1.8.5. In case of loans upto Rs. 2.00 Lac, interest including processing and other charges
(excluding additional charges / pre-payment charges / actual charges etc.) for such Loans
would not exceed Maximum Lending Rate (MLR) i.e. Benchmark Rate (Base Rate +6.00%
or One Year MCLR+7.10%).
1.8.6. The interest to be charged shall be rounded off to the nearest rupee.
1.9.
1.9.1. The Additional/ Penal interest may be levied at the prescribed rate for reasons such as
default in repayment, non-submission of financial statements as provided in APPENDIX-II.
1.9.2. In the case of under noted category of loans, no additional (penal) interest will be charged
Working Capital limits sanctioned to Sick/Weak Units, which have remained closed.
The borrower is affected by political disturbances, natural calamities defaulting thereby in
submission of statements under QIS/Monthly Cash Budget System/ Stock Statement.
Limits sanctioned for export credit as well as against export incentives.
Drawings in excess of operating limit but within overall sanctioned limit / Drawing Power.
Priority Sector Credit upto Rs.25,000.00.
DRI advances irrespective of amount of limit sanctioned.
Educational Loan upto Rs.7.50 lac.
Advances against NSCs/KVPs/FDRs/LIC (Surrender Value) etc. provided stipulated
margin is available.
1.9.3. Unless and otherwise specified, the interest charged inclusive of penal/ additional interest
should not exceed MLR+2% for non-priority sector advances and it will be Applicable
Rate + 2% or MLR whichever is lesser for priority sector advances.
1.10. Withdrawal Against Uncleared Effect :
1.10.1. Where withdrawals are allowed against cheques sent for clearing i.e. uncleared effects
(e.g., uncleared local or outstation cheques) which are in the nature of unsecured advances,
the Bank would charge interest on such drawls as unsecured advance i.e One Year
MCLR+ 7.10%+2.00%.
1.10.2. The aforesaid clause will, however, not be applicable to the facility afforded to depositors
for immediate credits in respect of cheques sent for collection, as a measure of customer
service.
1.10.3. Banks Guidelines on withdrawal against uncleared effect will also be complied with.
Page 10
1.11.2. However, Bank may fall in line with the lead bank/ major lender, subject to minimum
of our Benchmark Rate. In such cases under CBS the spread will be adjusted with our
Benchmark Rate (Base Rate or One year MCLR) so as to match our interest rate.
1.12. Zero Percent Interest Finance Scheme for Consumer Durables :
Bank will refrain from offering low/zero percent interest rates on consumer durable advances
to borrowers through adjustment of discount available from manufacturers/dealers of
consumer goods.
Bank should also not promote such schemes by releasing advertisement in different
newspapers and media indicating that they are promoting financing consumers under such
schemes.
Bank should also refrain from linking its name in any form / manner with any incentive based
advertisement where clarity regarding interest rate is absent.
1.13. Refund of Interest:
1.13.1. Permissible /admissible refund to the account holder on account of correction
/rectification of bonafide mistakes, if any, may be made by the present incumbent-in
charge of the branch. In all other cases, the refund will be permitted by ZLCC and above.
1.13.2. The interest or other charges debited in account as per guidelines, some time needs to
be reversed by the bank to fall in line with the consortium decisions or some times in
genuine circumstances beyond control of the bank. In such cases the refund may be
permitted by FGMLCC and above.
1.13.3. Where loan has been allowed against Banks own Fixed Deposit Receipt and the
Branch, after maturity of the FD do not adjust the loan account thereby interest is charged
on the loan outstanding, excess interest charged thereof in the loan account will be
refunded to the customer.
1.13.4. Where Bank after adjustment of the loan account do not remit/credit the remaining
amount of FD to the customers account but keeps balance in sundry creditors account or
kept as Credit balance in the loan account, Bank will compensate to the customer the
interest as payable for the amount kept in the sundry creditors account at savings bank
interest rate, if and only if the customer has not been duly informed.
1.13.5. Where loan has been allowed against NSCs, KVPs, LIC policy and the Branch, after
maturity of the instruments do not collect the proceeds of the instruments in question from
the concerned Post Offices/LIC offices thereby charging of interest in the loan account is
continued, excess interest so charged in the loan account will be refunded to the customer.
1.13.6. In case of reversal of excess interest charged in a borrowal account due to nonadjustment of liquid securities like Fixed Deposit / NSC/KVP etc in time the branch
concerned will obtain prior approval from the respective ZLCC.
1.14. Interest Income Recognition
1.14.1. Income from Non Performing Asset (NPA) is not recognized on accrual basis but is
booked as income only when it is actually received.
Interest Rate on Loans & Advances
Page 11
1.14.2.
Thus, till the time an advance is performing one, income from the same should be
recognized on accrual basis. But, the date from which it is classified as NPA (i.e. it ceases
to be performing) the income is to be accounted for on realization basis not only for the
current year but also interest accrued and credited to the income account in a prior
accounting period with respect to that NPA account should be reversed or provided for in
the current accounting period, if remains uncollected.
1.14.3. Interest on advances against term deposits, NSCs, KVPs, IVPs , Life Insurance
Policies ( Surrender Value) may be taken into income account on accrual basis on the due
date provided adequate margins as stipulated during sanction is available in the accounts.
1.14.4. In case of NPA account where interest income has ceased to accrue, the fees,
commission and similar income to the same borrower should not be credited to income
and should be reversed or provided for to the extent to which it is uncollected.
1.14.5. In case of rescheduling or re-negotiation of outstanding debts, the fees, commission
etc. should be recognized on accrual basis over the period of time covered by the renegotiated or re-scheduled extension of credit. Thus, the income would be recognized on
accrual basis from the date of rescheduling as if it was a fresh account.
In case of implementation of Sustainable structuring of Stressed Assets (S4A)/SDR,
income on accrual basis will not be recognized, if interest is not serviced within 90 days
from the due date.
1.14.6. If Govt. guaranteed advances become NPA, the interest on such advances should not
be taken to income account unless the interest has been realized.
1.14.7. If any advance, including bills purchased and discounted, becomes NPA as at the close
of any year, interest accrued and credited to income account in the corresponding previous
year, should be reversed or provided for, if the same is not realized. This will apply to
Government guaranteed accounts also.
1.14.8. The Computation of notional interest for the purpose of arriving at Banks sacrifice on
compromise, following methods will be adopted:
(i)
For Sub-standard & Doubtful Assets- Simple interest @ Benchmark Rate (Base
Rate or One Year MCLR) will be charged from the date of NPA till payment of
compromise sum,
(ii)
For Loss Assets and written off debts- No interest to be loaded over and above
the ledger balance as on the date of NPA.
(iii) The amount by which the notional amount due exceeds the compromise offer
would constitute the sacrifice.
(iv)
Notional Interest for the purpose of processing compromise proposals will be
calculated from the date of last charged interest in the account up to the date of
final payment. However, the computation of notional interest in the record
section of NPA ledger will be continued to be made.
(v)
However, in the cases where the proponent offers to pay the settled amount in
installments with One year MCLR/Base Rate/ documents rate/ stipulated rate ,
notional interest will be calculated only up to the period to which compromise
sum bears no interest.
Interest Rate on Loans & Advances
Page 12
(vi)
Page 13
1.17.9. The bank would notify details of all charges payable by the customers in relation to their
loan account.
1.17.10. The bank would make available for the benefit of prospective customers all the details
relating to charges generally in respect of retail product s in the media.
1.17.11. Any revision in interest rate/ charges would be notified in advance and would also be
made available in the media.
1.17.12. The bank would clearly specify to charge interest and other charges, wherever
necessary and get a mandate for debiting the said account along with documentation.
1.17.13. The reference benchmark rate shall form part of the terms of loan contract.
1.18. Enabling Clause :
Following provision should invariably be incorporated in the loan agreements in case of all advances,
including term loans, thereby enabling the bank to charge the applicable interest rate in conformity
with the directives issued by RBI/Bank from time to time.
Provided that the interest payable by the borrower shall be subject to the changes in interest
rates made by the Reserve Bank and/or by the Bank from time to time.
However, the branches are required to inform the borrower regarding changes in interest rates
whenever made, well in time and should also preserve the proof of delivery of acknowledgement
of such information.
1.19. Interest Rate Subvention:
1.19.1. Branches are advised to follow the instructions of Priority Sector Department/ SME and
Retail Credit , Head Office regarding interest rate subvention for short term crop loans to
farmers, educational loan as well as other priority sector advances, if any, and charge
interest as per rate and methodology prescribed by them.
1.19.2. Similarly, instructions of Foreign Department, Head Office should be followed regarding
interest rate subvention for certain employment oriented export sectors and interest as per
rate and methodology prescribed by them should be applied.
1.20. Exemption from MCLR and Base Rate:
The guidelines prescribe that the following types of loans are exempt from being linked to MCLR.
Working Capital Term Loan (WCTL), Funded Interest Term Loan (FITL), etc. granted as
part of the rectification / restructuring package is exempted from being linked to Base Rate
/ MCLR as the benchmark for determining interest rate.
Page 14
Loans granted under various refinance schemes formulated by Government of India or any
Government Undertakings wherein Bank charges interest at the rates prescribed under the
schemes to the extent refinance is available is exempted from being linked to Base Rate /
MCLR as the benchmark for determining interest rate. Interest rate charged on the part not
covered under refinance shall adhere to the Base Rate / MCLR norms.
The following categories of loans are to be priced without being linked to Base Rate /
MCLR as the benchmark for determining interest rate:
a) Advances to banks depositors against their own deposits.
b) Advances to banks own employees including retired employees.
c) Advances granted to the Chief Executive Officer / Whole Time Directors.
d) Loans linked to a market determined external benchmark.
e) Fixed rate loans of tenor above three years .
However, in case of hybrid loans where the interest rates are partly fixed and partly floating, interest
rate
on
the
floating
portion
shall
not
be
exempted
from
MCLR
guidelines.
Provided that fixed rate loans (including fixed rate portion of hybrid loans) of tenor upto three years
shall not be below applicable MCLR at the time of sanction or renewal.
1.21. Other Guidelines:
1.21.1. The total fees/charges applicable on various types of loans to individual borrower
should be disclosed at the time of processing of loan, and it will be displayed on the
website of banks for transparency and comparability and to facilitate informed decision
making by the customers.
1.21.2. The field functionaries will provide a clear/concise one page key fact statement/fact
sheet as per Appendix IV to all individual borrowers at every stages of loan processing
and/or in case of any changes in terms and conditions. Such fact sheet may also be
included as summary box to be displayed in credit agreement. The detailed fact sheet
will be a part of the sanction letter as well as a part of the documents.
1.22. Authority for Amendments in the Policy :
1.22.1. This policy will be reviewed time to time by the Board. The Asset Liability management
Committee (ALCO) shall be the authority to review and approve MCLR, spread and
related issues. Bank will review and publish MCLR on a preannounced date on monthly
basis.
1.22.2. In the interim period, ALCO is authorized to implement any guidelines/ instructions
received from RBI/IBA and/or to revise/amend any clause of the policy to cope with
emerging competitive challenges with subsequent reporting to the Board.
Page 15
1.22.3. The ALCO is also authorised to allow relaxation in the spread which will be reported to
Board for information.
1.22.4. Subsequent guidelines issued, if any, will be treated as integral part of these guidelines.
1.23. The modifications in rate of interest shall be applicable to all fresh sanctions/ enhancement/
review/ renewals in case of working capital loan and on sanction of Fresh Term Loan as well
as switchover from BPLR/Base Rate to MCLR.
1.24. The concession /relaxations/ deviations granted by higher authorities will be allowed by
sanctioning authority on next review/renewal and there is no need to seek concession
/relaxations/ deviations subsequently, provided there is no change in Risk Rating .
1.25. The Rate of interest will be decided based on risk rating. In case of change in risk rating, the
applicable rate of interest according to Revised Risk Ratings will be charged on working
capital.
Page 16
A n n e xu r e B
(M C LR w i l l m e an O n e ye ar M C LR )
2.Interest Rate Structure/ Guidelines for MSME Category
No change in spread is proposed for existing loan linked with Base Rate, BPLR as
circularized by Bank
2.1. Interest rate for Micro, Small & Medium Enterprises (MSME) Advances :
(MCLR means One year MCLR)
S.
Loan Limit
No
1. Upto Rs.0.50 Lacs
Micro
Enterprises
MCLR
(MCLR)
MCLR+1.00%
(MCLR+0.50
%)
MCLR+1.50%
(MCLR+1.00
%)
Small
Enterprises
MCLR+0.50%
(MCLR+0.50
%)
MCLR+1.50%
(MCLR+1.00
%)
MCLR+2.00%
(MCLR+1.50
%)
Medium
Enterprises
MCLR+ 1.00%
(MCLR+ 1.00%)
MCLR+ 2.00%
(MCLR+ 1.50%)
MCLR+ 2.50%
(MCLR+ 2.00%)
Medium Enterprises
Existing
Revised
MCLR+ 2.50%
MCLR+ 2.80%
MCLR+ 2.50%
MCLR+ 2.85%
MCLR+ 2.60%
MCLR+ 3.00 %
MCLR+ 3.10%
MCLR+ 3.75%
MCLR+3.60%
MCLR+4.40%
MCLR+5.10%
MCLR+6.25%
MCLR+5.10%
MCLR+6.25%
Note: Authority for allowing Relaxation in rate of interest on MSME advances are prescribed
in Paragraph 8.2 of Annexure H
2.2.
Food & Agro Processing Units and Rice Shelling: [(Based on One Year MCLR)]
Sl No
Loan Limit
Rate of interest
1
2
MCLR (MCLR)
MCLR + 1.30% (MCLR+1.00%)
MCLR+1.30% (MCLR+1.00%)
MCLR + 2.75% (MCLR+2.00%)
Page 17
Sl No
Loan Limit
Rate of interest
AB 5
MCLR + 2.80% (MCLR+2.00%)
AB 6 to AB 7
MCLR + 6.00% (MCLR+5.00%)
*For Micro & Small Enterprises, the interest rate will be as applicable to micro & small enterprises
mentioned at 2.1 under the band Rs 2 lacs to 10 lacs.
Figures in bracket indicates existing rate of interest.
Illustrative list of activities to be covered under Agro Based & Food Processing Units subject to
investment in Plant & Machinery criteria which will qualify for MSME is given as below:
01
03
Sl.
No.
02
04
05
06
07
08
09
11
10
12
13
15
14
16
17
19
21
Coffee Processing
Mfg. of Other Food Products
Processing of Cotton like Ginning etc.
18
20
22
23
25
24
Sl. No.
Activity Description
Activity Description
Dal Mill
Meat: Slaughter, processing, preservation
2.3.
Category
AB-1 to AB-4
Micro Enterprises
MCLR+1.65% (MCLR+1.25%)
Small Enterprises
MCLR+2.00% (MCLR+1.50%)
Page 18
Page 19
A n n e xu r e - C
3.Inertest Rate guidelines for Agriculture and Priority Sector Advances
MCLR will mean One year MCLR
3.1. Interest on Agricultural Advances:
S. No.
1
2
3
4
Loan Limit
Rate of interest
Direct
Agriculture
Lending
to
Individuals or Jointly with Family
Members: Above Rs.10 lacs & upto
Rs.1 Crore (Not linked to Credit
Rating)
3.2.
Existing
Revised
MCLR
MCLR+1.00%
MCLR+2.00%
MCLR
MCLR+1.30%
MCLR+2.3%
MCLR+ 2.00%
MCLR + 2.50%
MCLR+3.50%
MCLR+ 3.50%
MCLR+5.00%
MCLR +2.50%
MCLR+ 2.30%
MCLR + 3.00 %
MCLR+4.25%
MCLR+ 4.30%
MCLR+6.00%
Not Applicable(As
rating is mandatory
in all accounts
above 10 lacs)
Rate of interest
Existing
1
2
1 and AB 2
3
4
5
Rating
of
Revised
MCLR+0.40%
MCLR+2.30%
the
MCLR+ 2.00%
MCLR + 2.50%
MCLR + 3.50%
MCLR+ 3.50%
MCLR+ 2.30%
MCLR + 3.00%
MCLR+ 4.25%
MCLR+ 4.30%
Page 20
AB 6 to AB 7
MCLR+5.00%
MCLR+ 6.00%
Interest on Crop Loans/ KCC/ Production Credit upto Rs.3.00 lacs will be charged @ 7% p.a.
as per directives of Govt of India, provided interest subvention is available from Govt of
India, otherwise, it will be charged as per Banks norm.
Rate of Interest for Agriculture Advances includes Ware House, Rural Godowns,
Poultry, Dairy, other Allied Activities, Supply Chain of Agriculture inputs, Rural Health
Care, Against Ware House Receipt etc.
3.3.
S. No.
Risk Grades
Existing
Revised
Existing
Revised
1.
AB 1 or AAA
MCLR + 2.00%
MCLR + 2.30%
MCLR + 2.00%
MCLR + 2.30%
2.
AB 2 or AA
MCLR + 2.50%
MCLR + 3.35 %
MCLR + 3.00%
MCLR + 3.35 %
3.
AB 3 or A
MCLR + 3.50%
MCLR + 4.75%
MCLR + 4.00%
MCLR + 4.75%
4.
AB 4 or BBB
MCLR + 4.50.%
MCLR + 5.25%
MCLR + 4.50%
MCLR + 5.25%
5.
AB 5 or BB
MCLR + 5.00%
MCLR + 6.00%
MCLR + 5.50%
MCLR + 6.00%
6.
AB 6 or B
MCLR + 5.50%
MCLR + 6.00%
MCLR +6.00%
MCLR + 6.00%
7.
AB 7 or C
MCLR + 5.75%
MCLR + 6.00%
MCLR + 6.00%
MCLR + 6.00%
3.4.
S. No.
1.
2.
Schemes
Interest Rate
MCLR+2.30% (MCLR+2%)
All Bank Liquid scheme for Artiyas
Allahabad Bank Potato Growers Credit Card
Scheme
Term Loan
MCLR+1.30% (MCLR+1.00%)
Working Capital Upto Rs. 3.00 lacs
3.
4.
5.
5.1.
5.2.
MCLR+0.40% (MCLR+0.25%)
Page 21
5.3.
5.4.
5.5.
5.6.
5.7.
5.8.
5.9.
3.5.
3.5.1.
S. N.
Loan Limit
1
2
*For loan upto Rs.50000 per member and Rs.5.00 lakh per group: MCLR
**For loan above Rs.50000 to Rs.1.00 lakh per Member and above Rs.5.00 lakh to
Rs.10.00 lakh per group:
MCLR+1.30%
3.5.2. Housing Loan Scheme to EWS/LIG upto Rs.5 lac in urban areas under Credit Risk
Guarantee Fund Trust for Low Income Housing (CRGFTLIH)
Existing
Revised
MCLR
MCLR+0.15%
Rate of interest for those schemes/ products/ Activities will be as applicable for Agriculture, if
not otherwise expressed.
Note: Authority for allowing Relaxation in rate of interest on Agricultural advances are
prescribed in Paragraph 8.3 of Annexure H
Note: Interest rate given in bracket are existing rate as per last guidelines.
Page 22
A n n e xu r e -D
4. Interest Rate Export Credit [Based on One Year MCLR]
4.1. Interest Rate Export Credit Indian Rupee: (MCLR will mean One Year MCLR)
Type of Export Credit
Interest Rate for Gold Card Holder Normal
Client
(Indian Rupee loan)
(Other than Gold
Card Holder)
AB 1 & AB 2
AB 3 & AB 4
4.1.1. Pre Shipment Credit (From date of Advance)
MCLR+1.35%
MCLR+2.00%
MCLR+2.40%
a. Upto 270 days
(MCLR+1.00%) (MCLR+1.25%)
(MCLR+1.50%)
b. Against incentives receivable from
MCLR+1.35%
MCLR+2.00%
MCLR+2.40%
Govt. covered by ECGC guarantee upto 90
(MCLR+1.00%) (MCLR+1.25%)
(MCLR+1.50%)
days
4.1.2. Post Shipment Credit (From date of Advance)
a. On demand bills for transit period (as
MCLR+1.35%
MCLR 2.00%
MCLR+2.40%
specified by FEDAI)
(MCLR+1.00%) (MCLR+1.25%)
(MCLR+1.50%)
b .Usance Bills(for total period comprising usance period of export bills, transit period as specified by
FEDAI and grace period wherever applicable)
MCLR+1.35%
MCLR +2.00%
MCLR +2.40%
(i) Upto 180 days
(MCLR+1.00%) (MCLR+1.25%)
(MCLR+1.50%)
(ii) Beyond 180 days and upto maximum
MCLR+1.60%
MCLR+2.25%
Not Applicable
period of 365 days
(MCLR+1.25%) (MCLR+1.50%)
c. Against incentives receivable from
MCLR+1.35%
MCLR+2.00%
MCLR+2.40%
Government covered by ECGC Guarantee
(MCLR+1.00%) (MCLR+1.25%)
(MCLR+1.50%)
(upto 90 days)
d. Against undrawn balances (upto 90
MCLR+1.35%
MCLR+2.00%
MCLR+2.40%
days)
(MCLR+1.00%) (MCLR+1.25%)
(MCLR+1.50%)
e Against retention money (for supplies
MCLR+1.35%
MCLR+2.00%
MCLR+2.40%
portion only) payable within one year from
(MCLR+1.00%) (MCLR+1.25%)
(MCLR+1.50%)
the date of shipment. (upto 90 days)
4.1.3. Export Credit not otherwise specified (ECONOS)
a. Pre shipment Credit (For Overdue
MCLR+7.10%
Period)
(MCLR+6.00%)
b. Post shipment Credit
(i) For overdue bills up to 180 days from
MCLR+1.85%
the date of advance.
(MCLR+1.50%)
(ii) For overdue bills beyond 180 days
MCLR+7.10%
from the date of advance.
(MCLR+6.00%)
MCLR+7.10%
(MCLR+6.00%
MCLR+7.10%
(MCLR+6.00%)
MCLR+2.25%
(MCLR+1.50%)
MCLR+7.10%
(MCLR+6.00%)
MCLR+2.40%
(MCLR+1.50%)
MCLR+7.10%
(MCLR+6.00%)
Note: Interest rate given in bracket are existing rate as per last guidelines.
Interest Rate on Loans & Advances
Page 23
4.2.
Interest Rate on Foreign Currency Export Credit:
Type of Export Credit
Interest Rate for Gold Card
Holder
AB 1 & AB 2
4.2.1. Pre Shipment Credit (From date of Advance)
LIBOR
a. Upto 180 days
+3.00%
AB 3 & AB 4
LIBOR
+3.25%
LIBOR +3.50%
LIBOR +3.50%
LIBOR +3.50%
LIBOR+5.50%
Note: Branches will not levy any other charges viz service charges, management charges etc. except
for recovery towards out of pocket expenses incurred.
Note in respect of Interest Rates on Rupee Export Credit:
In the case where the due date(s) / realization period (s) has been extended, the interest at the
applicable rate should be charged upfront till the extended due date (s) / realization date(s). Interest
should however be refunded proportionately to the exporter if the bill is realized before the extended
due date / maturity.
4.3.
S.
No
1
A
Interest on Foreign Currency Loans (In India /Outside India) against FCNR (B) deposit:
Parameters
Rate of interest
To the Depositors
If repaid out of Foreign Currency remittance or maturity
proceeds of FCNR (B) deposits
Page 24
B
2
4.4.
Interest for Rupee Loans against FCNR (B) deposits (Both Fund Based & Non-Fund
Based)
S.
No
1
Parameters
Existing
Revised
To the Depositors
To third parties
4.5. Loan against Banks NRO and NRE Deposits (No changes in existing rates)
S.
Parameters
Existing
Revised
No
1
To the Depositors
2% above Deposit Rate
No Change
2
To third parties
No Change
Page 25
A n n e xu r e - E
5. Interest Rate Structure/ Guidelines for General Advances: (MCLR means One Year
MCLR)
In case of Base Rate Linked accounts, existing rate of interest as per last guidelines will be
continued.
(Other than those covered in Annexure B, C, D, F, G,)
5.1. Advances Upto Rs.10.00 lac:
S. No Parameters
ROI Existing
ROI Revised
5.2.
MCLR + 4.00%
MCLR + 4.30%
MCLR + 5.50%
MCLR + 6.25%
Advances Above Rs.10.00 lac for Working capital/ WCDL,/Term Loan/Open Term
Loan/STCL (Excluding CRE) including NBFC-AFC:
5.2.1. Above Rs.10.00 lac to Rs.1.00 crore: (One Year MCLR)
S.no.
i.
ii.
iii.
iv.
v.
vi.
vii.
Risk
Grades
AB 1
AB 2
AB 3
AB 4
AB 5
AB 6
AB 7
Repayable up to 3 years
Existing
MCLR + 4.00%
MCLR + 4.25%
MCLR + 4.50%
MCLR + 5.50%
MCLR + 5.60%
MCLR + 5.85%
MCLR + 5.85%
Revised
MCLR + 4.30%
MCLR + 4.60%
MCLR + 5.25%
MCLR + 6.25%
MCLR + 6.40%
MCLR + 6.80%
MCLR + 6.80%
Revised
MCLR + 4.25%
MCLR + 4.50%
MCLR + 4.75%
MCLR + 5.75%
MCLR + 5.85%
MCLR + 6.00%
MCLR + 6.00%
MCLR + 4.55%
MCLR + 4.85%
MCLR +5.50%
MCLR + 6.50%
MCLR + 6.65%
MCLR + 6.95%
MCLR + 6.95%
Risk
Grades
AB 1
AB 2
AB 3
AB 4
AB 5
AB 6
AB 7
Repayable up to 3 years
Existing
Revised
Existing
Revised
MCLR + 4.00%
MCLR + 4.25%
MCLR + 4.50%
MCLR + 5.00%
MCLR + 5.60%
MCLR + 5.85%
MCLR + 5.85%
MCLR + 4.30%
MCLR + 4.60%
MCLR + 5.15%
MCLR + 5.65%
MCLR + 6.40%
MCLR + 6.80%
MCLR + 6.80%
MCLR + 4.25%
MCLR + 4.50%
MCLR + 4.75%
MCLR + 5.25%
MCLR + 5.85%
MCLR + 6.00%
MCLR + 6.00%
MCLR + 4.55%
MCLR + 4.85%
MCLR + 5.40%
MCLR + 5.90%
MCLR + 6.65%
MCLR + 6.95%
MCLR + 6.95%
5.3.
Advances above Rs.10.00 crore for Working capital/ WCDL,/Term Loan/Open Term
Loan/STCL (Excluding CRE)
The revised interest rate/s for loans and advances Rs.10.00 crore & above are based on Internal
Rating as well as External Rating and shall be as under:
[(Based on One Year MCLR)]
Interest Rate on Loans & Advances
Page 26
BBB
BB & B
C&D
Unrated
AB 1
MCLR
MCLR+0.50%
MCLR+1.00%
MCLR+2.00%
MCLR+3.00%
MCLR+3.50%
MCLR+2.50%
AB 2
MCLR+0.50%
MCLR+1.00%
MCLR+2.00%
MCLR+2.50%
MCLR+3.50%
MCLR+4.00%
MCLR+3.00%
AB 3
MCLR+1.50%
MCLR+2.00%
MCLR+3.00%
MCLR+3.50%
MCLR+4.25%
MCLR+5.00%
MCLR+4.00%
AB 4
MCLR+1.75%
MCLR+2.50%
MCLR+3.25%
MCLR+4.00%
MCLR+5.25%
MCLR+5.25%
MCLR+5.00%
AB 5
MCLR+2.00%
MCLR+2.75%
MCLR+3.75%
MCLR+4.25%
MCLR+5.60%
MCLR+5.60%
MCLR+5.35%
AB 6
MCLR+2.50%
MCLR+3.00%
MCLR+4.00%
MCLR+4.50%
MCLR+5.85%
MCLR+5.85%
MCLR+5.85%
AB 7
MCLR+3.00%
MCLR+3.50%
MCLR+4.50%
MCLR+4.75%
MCLR+5.85%
MCLR+5.85%
MCLR+5.85%
Revised
External
Rating
Internal
Rating
AAA
AA
BBB
BB & B
C&D
Unrated
AB 1
MCLR+ 0.30%
MCLR+0.80%
MCLR+1.30%
MCLR+2.30%
MCLR+3.30%
MCLR+3.80%
MCLR+2.80%
AB 2
MCLR+0.85%
MCLR+1.35%
MCLR+2.35%
MCLR+2.85%
MCLR+3.85%
MCLR+4.35%
MCLR+3.35%
AB 3
MCLR+2.25%
MCLR+2.75%
MCLR+3.75%
MCLR+4.25%
MCLR+ 5.00%
MCLR+5.75%
MCLR+4.75%
AB 4
MCLR + 2.60%
MCLR + 3.35%
MCLR + 4.10%
MCLR + 4.85%
MCLR + 6.10%
MCLR + 6.10%
MCLR + 5.85%
AB 5
MCLR + 2.90%
MCLR + 3.65%
MCLR + 4.65%
MCLR + 5.15%
MCLR + 6.50%
MCLR + 6.50%
MCLR + 6.25%
AB 6
MCLR + 3.65%
MCLR + 4.15%
MCLR + 5.15%
MCLR + 5.65%
MCLR + 7.00%
MCLR + 7.00%
MCLR + 7.00%
AB 7
MCLR + 4.15%
MCLR + 4.65%
MCLR + 5.65%
MCLR + 5.90%
MCLR + 7.00%
MCLR + 7.00%
MCLR + 7.00%
BBB
BB & B
C&D
Unrated
AB 1
MCLR + 0.25%
MCLR+0.75%
MCLR+1.25%
MCLR+2.25%
MCLR+3.25%
MCLR+3.75%
MCLR+2.75%
AB 2
MCLR+0.75%
MCLR+1.25%
MCLR+2.25%
MCLR+2.75%
MCLR+3.75%
MCLR+4.25%
MCLR+3.25%
Page 27
AB 3
MCLR+1.75%
MCLR+2.25%
MCLR+3.25%
MCLR+3.75%
MCLR+4.50%
MCLR+5.25%
MCLR+4.25%
AB 4
MCLR+2.00%
MCLR+2.75%
MCLR+3.50%
MCLR+4.25%
MCLR+5.50%
MCLR+5.50%
MCLR+5.25%
AB 5
MCLR+2.25%
MCLR+3.00%
MCLR+4.00%
MCLR+4.50%
MCLR+5.85%
MCLR+5.85%
MCLR+5.60%
AB 6
MCLR+2.75%
MCLR+3.25%
MCLR+4.25%
MCLR+4.75%
MCLR+6.00%
MCLR+6.00%
MCLR+6.00%
AB 7
MCLR+3.25%
MCLR+3.75%
MCLR+4.75%
MCLR+5.00%
MCLR+6.00%
MCLR+6.00%
MCLR+6.00%
Revised
External
Rating
AAA
Internal
Rating
AA
BBB
BB & B
C&D
Unrated
AB 1
MCLR+ 0.55%
MCLR + 1.05%
MCLR + 1.55%
MCLR + 2.55%
MCLR + 3.55%
MCLR + 4.05%
MCLR + 3.05%
AB 2
MCLR + 1.10%
MCLR + 1.60%
MCLR + 2.60%
MCLR + 3.10%
MCLR + 4.10%
MCLR + 4.60%
MCLR + 3.60%
AB 3
MCLR + 2.50%
MCLR + 3.00%
MCLR + 4.00%
MCLR + 4.50%
MCLR + 5.25%
MCLR + 6.00%
MCLR + 5.00%
AB 4
MCLR + 2.85%
MCLR + 3.60%
MCLR + 4.35%
MCLR + 5.10%
MCLR + 6.35%
MCLR + 6.35%
MCLR + 6.10%
AB 5
MCLR + 3.15%
MCLR + 3.90%
MCLR + 4.90%
MCLR + 5.40%
MCLR + 6.75%
MCLR + 6.75%
MCLR + 6.50%
AB 6
MCLR + 3.90%
MCLR + 4.40%
MCLR + 5.40%
MCLR + 5.90%
MCLR + 7.10%
MCLR + 7.10%
MCLR + 7.10%
AB 7
MCLR + 4.4%
MCLR + 4.90%
MCLR + 5.90%
MCLR + 6.15%
MCLR + 7.10%
MCLR + 7.10%
MCLR + 7.10%
5.4.
5.
Financing to Doctors/ Medical Practitioners for clinic/ nursing home and other purpose
not covered under MSME Category: (MCLR is one year MCLR)
Security coverage
Existing
Revised
Loans secured 100% by Collateral security (Real
MCLR + 2.00%
MCLR +
Estate or Cash Collateral)
2.35%
Loans secured 75% by Collateral security (Real Estate
MCLR + 3.00%
MCLR +
or Cash Collateral)
3.75%
Loans secured below 75% by Collateral security (Real
MCLR + 3.50%
MCLR +
Estate or Cash Collateral)
4.35%
For Vehicles
MCLR + 3.00%
MCLR +
3.75%
Personal Loan to Doctors
MCLR+5.00%
MCLR+5.75%
5.5.
Unsecured Loan and Advances & any other Loans & Advances not specified above
1
2
3
4
Loan Limit
Facilities having maturity of less than
3 years
Interest Rate on Loans & Advances
Existing
Revised
MCLR+5.85%
MCLR+7.00%
Page 28
MCLR + 6.00%
MCLR + 7.10%
Concession in such loans : CAC may allow relaxation upto applicable MCLR, HLCC ED upto
applicable MCLR + 3.00% and HLCC GM / FGMLCC upto One Year MCLR + 6.10%, considering
the business perspective and other parameters.
5.6. Interest for Other Non Priority Advance: ( MCLR means One Year MCLR)
S.
Parameters
Existing
Revised
No
1. Commercial Real Estates
Rating
ROI
Rating
ROI
above Rs. 10 Lacs
AB 1 to AB- MCLR+3.50% AB 1 to ABMCLR+4.00%
3
3
AB 4
MCLR+4.50%
AB 4
MCLR+5.25%
AB 5 to AB 7 MCLR+5.10% AB 5 to AB
MCLR+6.00%
7
2. Loan against shares to
MCLR+3.50%
MCLR+4.00%
individual
3. Loan against Shares to AB 1 to AB MCLR
+ AB 1 to AB MCLR + 4.50%
Corporate Stock Brokers
44.00%
4
4. Term Loan for construction Upto 2 lac
MCLR
+ Upto 2 lac
MCLR + 4.50%
of Banks Office/ Premises /
4.00%
Staff quarter
Above 2 lac
MCLR
+ Above 2 lac MCLR + 5.00%
4.50%
5. Loans
to
Intermediary Rating
Rate
of
Rating
Rate
of
Agencies including Housing
interest
interest
Intermediaries
AB 1 to MCLR+2.00%
AB 1 to AB MCLR+2.50%
AB 3
3
AB 4
MCLR+2.50%
AB 4
MCLR+3.25%
AB 5
MCLR+3.10%
AB 5
MCLR+4.00%
AB 6 & MCLR+4.10%
AB 6 & AB MCLR+5.25%
AB 7
7
6. DRI
4.00% (fixed)
Page 29
5.7. Interest for Discounting of Bills backed by Prime Bank L/C (Both Demand/ Usance)
(MCLR means One Year MCLR)
S. No Parameters
Existing
Revised
1
Demand Bills
MCLR +1.00%
MCLR +1.30%
2
Usance Bills upto 90 days
MCLR +1.50%
MCLR +1.80%
3
Usance Bills above 91 days to 180 days
MCLR+2.00%
MCLR+2.30%
4
5
MCLR + 2.00%
MCLR + 3.00%
MCLR + 2.30%
MCLR + 3.30%
As per regular As
per
regular
Working Capital
Working Capital
As per export credit rate based on tenure.
5.8. Relaxation in Interest Rate on Discounting of Bills under Prime Banks Letter of Credit
S.No
1
2
3
4
5.9.
Competent
Authority
Existing
Relaxation/
Concession
ZLCC
Upto applicable
AGM/DGM
MCLR
FGMLCC and Upto applicable
HLCCGM
MCLR
Applicable
MCLR +1%
HLCC ED
Upto applicable
MCLR
CAC & Above
Upto applicable
MCLR
HLCCGM and
above
Revised
Tenor
Relaxation/
Concession
Upto applicable With usance period upto 90 days
MCLR+0.30%
Upto applicable With Usance Period from 91 days and
MCLR +0.30%
upto 180 days
Applicable
With Usance Period from 181 days and
MCLR +1.30%
upto 270 days
Upto applicable With Usance Period upto 270 days
MCLR+0.30%
Upto applicable Any Usance Period permissible as per
MCLR
RBI Guidelines.
May Permit Interest rate upto applicable MCLR for Usance
period upto 90 days
Discounting of Bills under Non Prime Banks LC: As per Borrower Rating and as
applicable for other working capital limit.
LIPs (Surrender
Revised
No Change
No Change
Page 30
rate
No loan against
third party deposit
permitted
No loan against
third party deposit
permitted
MCLR+4.30% for
loan upto 2 lac
MCLR +7.10%
for loan above 2
lac
MCLR+4.30%
5.11. Restructuring of Potentially Viable Accounts (MCLR means one year MCLR)
S. Parameters
Relaxation in Rate of interest
No
1
In case of accounts referred to CDR/BIFR/ Joint As per package
Lending Forum
2
Working Capital
Interest Dues on
Cash Credit and
Term
Loan
(Including
proposed FITL)
Working Capital
Other advances
Interest @ 1.00% below the
prevailing rate subject to minimum
of MCLR (Revised).
Term Loan
Term Loan
Page 32
A n n e xu r e F
6.
Revised
MCLR
MCLR
MCLR+0.25%
MCLR +0.25%
MCLR+0.15%
MCLR+0.25%
MCLR+0.50%
MCLR +0.65%
MCLR+0.50%
MCLR+0.65%
MCLR + 2.00%
MCLR + 3.00%
5.
6.
All Bank
Scheme
6.2.
Credit
Loyality
For
Housing
Loan
Borrowers- of the BankMCLR+1.25%
For Borrowers under All
Bank Property SchemeMCLR+3.00%
MCLR+4.00%
(Scheme
has
discontinued.
MCLR + 5.50% (MCLR+5.00%)
MCLR+5.50% (MCLR +5.00%)
since
been
MCLR+5.00%
(Existing)
Existing
MCLR + 3.00%
MCLR + 4.50%
MCLR + 3.50%
MCLR+5.00% (Revised)
Revised
MCLR + 3.50%
MCLR + 5.00%
MCLR + 4.50%
MCLR + 2.50%
MCLR + 3.00%
7. All Bank Home Appliance Finance
Scheme
MCLR + 4.00%
MCLR + 4.00%
8. Term
Loan/
Overdraft
against
NSC/KVP
6.3. Different Vehicle Finance Scheme
1. All Bank Dream Car Scheme
For New Vehicle
MCLR + 0.25%
MCLR + 0.50%
For Pre-owned vehicles
MCLR+ 0.75%
MCLR+ 1.50%
2. All Bank Mobike Scheme
MCLR + 3.00%
MCLR + 3.25%
Existing
Proposed
3. All Bank Fleet Finance Scheme AB- 1
MCLR+2.50%
MCLR+2.80%
(Loan amount of Rs.2.00 crore AB- 2
MCLR+2.50%
MCLR+2.85%
and above)
AB -3
MCLR+2.50%
MCLR+3.00%
AB -4
MCLR+3.50%
MCLR+4.15%
AB-5
MCLR+3.50%
MCLR+4.30%
AB- 6
MCLR+6.00%
MCLR+6.95%
AB-7
MCLR+6.00%
MCLR+6.95%
4. All Bank Commercial Vehicle
Micro
Small Enterprises
Scheme ( Loan amount upto Loan
amount
Enterpris
Rs.2.00 crore)
e
Upto
MCLR
MCLR
+
0.50%
Rs.0.50
(MCLR)
(MCLR+0.50% existing)
lacs
Above 0.50 MCLR+
MCLR + 1.50% (MCLR+
lacs
to 1.00%
1.50% existing)
Rs.2.00
(MCLR+
lacs
1.00%
existing)
Above
2 MCLR + MCLR
+
2.00%
lacs
to 1.50%
(MCLR+2.00% existing)
Rs.10 lacs (MCLR+
Interest Rate on Loans & Advances
Page 34
Above
Rs.10 lacs
1.50%
existing)
N/A
Existing
AB 1
AB 2
AB 3
AB 4
AB 5
AB 6
AB 7
6.4.
1.
2.
Gyan Dipika
6.5.
6.6.
Revised
MCLR+2.00
%
MCLR+2.50
%
MCLR+3.00
%
MCLR+3.50
%
MCLR+5.50
%
MCLR+6.00
%
MCLR+6.00
%
MCLR+2.50
%
MCLR+2.50
%
MCLR+3.00
%
MCLR+3.00
%
MCLR+4.00
%
MCLR+5.65
%
MCLR+5.65
%
Revised
Other MCLR + 0.35%
MCLR + 1.85%
MCLR+2.00%
MCLR+2.00%
MCLR + 2.00%
MCLR + 2.00%
MCLR + 1.50%
BR+4.00%
MCLR + 2.00%
MCLR + 2.00%
MCLR + 1.85%
MCLR+4.50%
Existing
BR+5.50%
Revised
MCLR+5.50%
Existing
BR+4.00%
Revised
MCLR+4.00%
Page 35
6.7.
6.9.
1.
Existing
AB 1 to AB 2- BR+2%
AB 3 to AB 5- BR+4%
Revised
AB 1 to AB 2MCLR+2.50%
AB 3 to AB 5MCLR+4.50%
Page 36
2.
Tie up with BSNL for extending Car Loan upto 36 months- MCLR (Existing)
Car Loan above 36 months upto 84 monthsRetail Products to their employees
MCLR+0.25% (Existing)
Car Loan MCLR + 0.50% (Revised)
Saral Loan- MCLR+2.50% (Existing)/ MCLR+3.00%
(Revised)
Educational Loan
IIM, ISB - MCLR (Existing)/ MCLR +0.35% (Revised)
and subsequent guidelines
IIT & Premier Medical College*- MCLR + 1.00%
(Existing)/ MCLR+1.50% (Revised) and subsequent
guidelines
NIT/ Other colleges* - MCLR+2.00% (Existing) /
MCLR+2.00% (Revised) and subsequent guidelines.
Other institutions:
Loan upto Rs.4.00 lac- MCLR +2.50% (Existing)/
MCLR+2.00% (Revised).
Above Rs.4.00 lac and upto 7.50 lac- MCLR +2.50%
(Existing)/ MCLR+2.00% (Revised).
*(List of institute as per HO Circular No.
13950/Retail Credit/2015-16/09 dated 03.10.2015 &
subsequent guidelines)
Note: 0.50% rebate for girl students will be allowed.
1% concession will be allowed if interest is paid within
study period and moratorium.
Page 37
A N N EX U R E- G
7. Interest Rate guidelines for STAFF LOANS
S. No.
1
2
3
4
5
6
7
Scheme
Existing/Revised
Housing Loan
8.00% per annum (Simple)
Staff Conveyance Loan
8.50% per annum (Simple)
Clean Overdraft
One year MCLR + 2.00%
(Floating)
10.50% (fixed)
Consumer Loan
One Year MCLR +2.00%
Loan for purchase of Computer
One Year MCLR+4.00%
Term Loan against own deposit (including retired 0.50% over deposit rate (interest
employee)
at half yearly rests)
Term Loan against NSC/LIP/KVP/RBI RELIEF One Year MCLR+1.00%
Bonds/Transferable unit of UTI
Motor Cycle Loan (Conveyance Loan)
8.50% (simple)
Page 38
A N N EX U R E- H
8. RELAXATION & CONCESSION IN RATE OF INTEREST
8.1.
Page 39
AB-1 to AB-4
4. HLCC ED
AB-1 to AB-5
5. CAC
Any category
8.3.
S.No Competent
Relaxation/ Concession
Authority
1
ZLCC AGM/ Interest rate may be reduced by 0.50% in case of cold storage finance
DGM
where collateral is more than 100% by ZLCC and above.
2
FGM-LCC
HLCC GM
HLCC ED
CAC
For loan limit above Rs.2.00 lac and up to Rs 25.00 lac: 1% relaxation
subject to minimum MCLR+1% (Revised)
For loan limit above Rs.25.00 lac: For Internal Rating AB-1 to AB-4 or
External Rating BBB and above, 1% relaxation subject to minimum
MCLR+1.50%
For loan limit above Rs.2.00 lac and up to Rs 25.00 lac: 1.25% relaxation
subject to minimum MCLR+1.00% (Revised)
For loan limit above Rs.25.00 lac: For Internal Rating AB-1 to AB-4 or
External Rating BBB and above, 1.25% relaxation subject to minimum
MCLR+1.00 %
Applicable MCLR+1% (Revised)
Upto Base Rate (Existing)/ Applicable MCLR (Revised) including in
MCBOD cases.
Page 40
Financing to Doctors/ Medical Practitioners for clinics /nursing home etc., the
concessions at various levels subject to minimum of Base Rate (Existing)/ MCLR
(Revised), will be as under: (Other than MSME)
S.No:
Authority
Concession/ Relaxation
1.
ZLCC/ DGM
Upto 0.75%
2.
FGMLCC
Upto 1.25%
3.
HLCCGM
Upto 1.50%
4.
HLCC ED
Upto 2.25 %
5.
CAC
Applicable MCLR (Revised)
8.5.
HLCC ED
HLCC GM
FGMLCC
For Term Loan/ Overdraft against LIP (Surrender value), RBI Relief Bonds, Central Govt
Securities
1
ZLCC
Upto 0.50% concession from applicable rate not below MCLR,
subject to availability of margin of 25%
2
FGMLCC
Upto 1.00% concession from applicable rate subject to availability
of margin of 10% or more
Page 41
HLCCGM
HLCCED
CAC
8.7.
S.No
1
Rating
Competent Authority
ZLCC AGM / DGM
Relaxations
NA
AB 1 to AB 3
FGMLCC
3
HLCC GM
HLCC ED
No Concession
1% concession subject to Minimum of
MCLR+3.00% (Revised)
1.00% concession, subject to minimum
of MCLR+4.00% (Revised)
1.25% concession subject to Minimum
of MCLR+3.00% (Revised)
1.25% concession, subject to minimum
of MCLR+4.00% (Revised)
2% concession subject to minimum of
Applicable MCLR+2.00% (Revised)
upto Applicable MCLR (Revised)
Competent Authority
Relaxations
No Concession
FGMLCC
No Concession
HLCC GM
HLCC ED
8.8.
Competent Authority
Relaxations
HLCC ED
Upto Applicable MCLR+3.50% (Revised)
CAC (HLCC ED in absence of CMD) and Upto Applicable MCLR (Revised)
above
Page 42
8.9.
Relaxation in rate of interest on loans for all category of advances not covered above:
a. Based on Internal Rating : (External Rating not available):
Sl. No
1
2
AB-1 to AB-3
AB- 4 & AB 5
HLCC GM
AB-1 to AB-3
AB- 4 & AB 5
HLCC ED
AB 1 to AB 5
CAC
Any category
Competent
Authority
ZLCC
AGM/ DGM
FGML CC
HLCC GM
HLCC ED
CAC
Any category
MCLR (Revised).
Upto Applicable MCLR (Revised) even
In MCBOD sanctioned cases.
Note: ZLCC and FGMLCC shall report the reductions permitted by them with justifications,
during the month, in the monthly Discretionary Authority statement to the next higher
authority, as per the extant guidelines.
2.
HLCC GM
HLCC ED
CAC
ZLCC
FGMLCC
HLCC GM
HLCC ED
CAC
3.
4.
5.
FGMLCC
HLCC GM
Page 44
6.
HLCC ED
CAC
ZLCC
FGMLCC
HLCCGM
HLCCED
CAC
7.
FGM LCC
8.
9.
HLCCGM
CAC
13. All other Schemes
in CAC
Retail Credit, MSME &
Other
Priority/
Non
Priority
Sector,
not
specified above
Interest Rate on Loans & Advances
Page 45
COMPETANT AUTHORITY
CAC/ HLCC-ED (in absence of CMD)
HLCC ED
FGMLCC/HLCC GM
ZLCC/DGM
8.12. CAC is empowered to waive/reduction in Switchover fees in case existing Term Loan
linked with Base Rate and opt for MCLR linked rate.
8.13. Others:
a) The BH/ ZLCC/FGMLCC may permit the eligible maximum concessions in interest rate for
those borrowal accounts, where sanction is made by the Branches/ Zones within their purview
and also upto their own sanctioning powers.
b) FGMO/ZO/Branch should invariably put on record the rationale/ justification for permitting/
recommending any reduction in rate of interest on case to case basis.
c) The FGMLCC/ HLCC GM/HLCC ED/CAC who are involved in the loan sanctioning process
may permit concessions in the interest rate for loan up to their respective sanctioning powers.
d) The CAC / HLCC ED in absence of CMD may permit concessions in the accounts sanctioned
by the MCBOD, however the same will be reported to the MCBOD in subsequent meeting.
The MCBOD may also permit concessions in the interest rate upto Base Rate (Existing)/
MCLR (Revised) based on suitable justification on the same.
e) The concessions should not be perceived as the main or only strategy to attract / retain
business. The concessions/ relaxations may be passed on to the borrower in order to
effectively meet competitive pressures with minimum loss of income after fully satisfied
about the validity of reasons offered by the Borrowers/ Branches. However, in all such cases
where concessions/ relaxations are permitted, the Risk Grading and the pricing should be
indicated separately.
f) The Borrower enjoying any other benefits of interest rate reduction like festival bonanza etc
will not be eligible for further reduction in rate of interest.
g) The rate of interest applicable for proposals under Govt. Sponsored Schemes like PMRY,
SGSY etc and other schematic loans under Agriculture and MSME sector will be charged
without allowing any reduction.
h) In case of MSME advances, if the Branches are unable to assess original investment criteria, a
certificate with regard to investment in plant and machinery / equipment should be obtained
from a Chartered Accountant.
Page 46
i) If any concessions or authority to allow such concessions is mentioned in any specific scheme
of the Bank, the same will be followed for allowing concessions under the said scheme.
j) The concession /relaxations/ deviations granted by higher authorities will be allowed by
sanctioning authority on next review/renewal and there is no need to seek concession
/relaxations/ deviations subsequently, provided there is no change in Risk Rating.
k) A letter of such revision / reduction in interest rate in case of existing borrowers stipulating all
the terms of interest rate revision/reduction should be given to borrowers and their
acknowledgement/acceptance will be obtained and held with the security document.
l) Where concessions are extended to customer in rate of interest & if he/she/they does/do not
avail the facility at this rate within two months of the sanction or from the scheduled date of
disbursement, the concessions in the rate of interest may be reviewed / withdrawn by the
sanctioning authority considering the prevailing interest rate scenario, liquidity position of the
Bank/ Market etc. While accepting any proposal from the borrower for reduction of interest
rate, the above terms must be communicated to the borrower through the sanction letter.
m) Concurrent auditors/ Inspecting officials will check the cases of concessions in Rates of
Interest at Branch level and ensure that the same have been approved by the appropriate
authority and charged as per guidelines.
Page 47
A N N EX U R E- I
9. Miscellaneous Issues on rate of interest:
9.1. General Guidelines:a) Construction Contractors - The rate of interest as applicable to the category of advance of the
borrower at the time of availing the loan shall be applicable.
b) Open Term Loan to existing units of the bank/other banks - The rate of interest as applicable
to the category of advance of the borrower at the time of availing the loan shall be applicable.
c) Reset clause must invariably be incorporated in all the sanctions viz loans sanctioned at fixed
rate of interest or loan sanctioned on floating rate of interest aiming to hedge interest rate risk
arising out of change of any regulatory conditions, market changes etc.
d) Procedure for resetting Interest Rate:
The condition of reset clause will invariably be part of sanction letter. The reset may be
subject to other external bench marks like SBAR, LIBOR, G-Sec as per practice or mutually
agreed terms.
Page 48
APPENDIX-I
An Illustrative list of Intermediary Agencies
1. State sponsored organizations for on-lending to weaker sections. Weaker sections
include
i) Small and marginal farmers with landholdings of 5 acres and less, and landless labourers, tenant
farmers and share-croppers;
ii) Artisans, village and cottage industries where individual credit requirements do not exceed Rs.
50,000/-;
iii) Beneficiaries of Swarnjayanti Gram Swarozgar Yojana (SGSY);
iv) Scheduled Castes and Scheduled Tribes;
v) Beneficiaries of Differential Rate of Interest (DRI) scheme;
vi) Beneficiaries under Swarna Jayanti Shahari Rozgar Yojana (SJSRY);
vii) Beneficiaries under scheme of Liberation and Rehabilitation of Scavengers (SLRS);
viii) Advances to Self-Help Groups (SHGs);
ix) Loans to distressed poor to repay their debt to informal sector, against appropriate collateral or
group security; Loans granted under (i) to (viii) above to persons from minority communities as may
be notified by Government of India from time to time. In states, where one of the minority
communities notified is, in fact, in majority, item (ix) will cover only the other notified minorities.
These States/Union Territories are Jammu and Kashmir, Punjab, Sikkim, Mizoram, Nagaland and
Lakshadweep.
Housing Finance Companies approved by National Housing Bank (NHB) for refinance.
State sponsored organizations for SCs / STs (for purchase and supply of inputs to and/or
marketing of output of the beneficiaries of these organizations).
Micro Finance Institutions / Non-Government Organizations (NGOs) on-lending to SHGs.
Page 49
APPENDIX-II
Realization of Additional Interest/ Penal Interest
Sl No
Parameters
1
6
7
8
9
Additional
interest
2%
2%
2%
2%
2%
2%
2%
2%
2%
Page 50
Page 51
APPENDIX III
Format for Proposals for interest rate reduction in the account.
Zone:
Branch :
Account :
Whether existing or new connection :
Risk Grading :
Previous
Financial Risk
Management Risk
Business Risk
Activity/Industry Risk
Overall
External Rating:, if any:
Name of Rating Date of finalization
Agency
external rating
Present
Remarks
of Long
Term Short
Rating
Rating
Term Valid
upto
A. Present Proposal :
To consider reduction in rate of interest.
Facility
Interest as per
Interest rate
guidelines
Sanctioned
rate of interest
Proposed Rate
of interest
No of times rate of
interest reduced
excluding present
claim
B. Borrower Profile :
1. Name of the Account
2. Business / Activity
3. Borrowing since
4. Asset Classification
5. Lending Arrangement
6. If consortium, Lead Bank & our % of share
C. Facilities sanctioned :
Last sanction/Review
Details of Limits from our Bank :
Sr. Facility
Interest Rate on Loans & Advances
: dated
(Rs/Lacs)
Sanctioned Limit
Outstanding as on
Page 52
no
a.
b.
c.
Packing Credit
FBP/FBN
Fresh Term Loan
D. Security :
Particulars
Value &
Date
(Rs./lac)
Primary :Collateral:-
TOTAL
E. Position Of account:a. In case of Working Capital:Particulars
Value of Stock
Margin
Outstanding
Page 53
Rectification
Page 54
Appendix IV
Key Fact Statement: (to be included in sanction
a) Name of the Customer:
b) Nature of the Loan:
c) Details of Credit Facilities:
Sl No
1.
Particulars
Facility
Amount
Total
2.
3.
4.
Loan Term
Interest Type
Interest Chargeable
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Page 55
15.
16.
17.
papers, if any,
EMI / Installment payable
Details of securities
Primary Security
Collateral Security
Guarantee
Date of documents
Date of registration of charge
with CERSAI/ ROC as
applicable
Date on which annual
outstanding balance statement
will be issued
Page 56