Penal Charges for Construction Finance

Sr. No.

Type of Charge

Description of Charges

1

Foreclosure charges for Take over cases

4% of loan Principal outstanding for Term loan and 4% of the sanctioned amount for Working Capital Facility (plus taxes). Micro & Small Enterprises as defined under MSMED Act 2006 are exempted irrespective of the limits/out standings.

2

Charges for Overdue / delay / default of any monies payable

4% over the contracted rate of the transaction

3

Penal charges on customer exposures, overdue for renewal of credit facilities

4% over the contracted rate of the transaction

4

Higher levy of charges in case account conduct deteriorates

4% over the contracted rate of the transaction

5

Breach of facility covenants (if any)

4% over the contracted rate of the transaction

6

EMI bounce charges for term loans

Rs 450 (plus taxes) Per EMI bounce

7

Penal charges for customers not submitting the Letter Acknowledging their Debt (LAD)

Rs. 5000 per week from the due date

8

Non-Submission of Project MIS as applicable (monthly/ quarterly)

Rs. 5000 per week from the due date

9

Maintaining Current Account with Other Bank while facility is granted under Sole Banking (Applicable where specific permission is not taken by the customer). Notice to be sent for immediate closure

Rs. 5000 per week from the date identified, till the closure

10

Not complying with documentation for the credit facility.

Other than security document, Rs. 5000 per week from the due date