PGB - Processing Charges

Processing/upfront fee is to be charged as under:

 

i)    For all loans upto one year, processing fee is to be charged.


ii)  For loans over one year,

 

(a) upfront fee is to be charged in case loans are sanctioned to meet capital expenditure and

(b) processing fee is to be charged proportionately for the period of sanction in case loans are sanctioned for working capital requirements.

 

Working Capital


     UptoRs. 25000/-.
    
     Above Rs.25000/-&uptoRs. 2 lakh


     Above  Rs.2  lakh 


For Non-Fund Based Limits.

 

 

NIL


Rs.500/-*


Rs.225/- per lac or part thereof **


50%  of  the  charges  as  applicable  to fund based limits.

*In case of advances to Micro Enterprises upto Rs. 2 lakh.
**         In case of advances to MSME@ Rs.225/- per lakh or part thereof.

 

No processing charges are to be levied in case of advances against deposits, Govt. securities, UTI, Mutual Fund Units, NSCs, KVPs, IVPs and IRDP cases and in case of Self Help Group Accounts (SHGs), below poverty line.

 

Further, no processing fee/service charges/ledger folio charges are to be levied in respect of borrowers who have been issued Kisan Credit Card against the security of FDR, NSCs, KVPs or other such liquid securities.


Besides, no processing fee is to be charged for processing the cases of setting up of Agri Clinics and Agri Business Centres by Agricultural Graduates under ‘Central Sector Scheme’.

 

The above charges will also be applicable in respect of working capital limits to traders.


Processing fee/upfront fee already deposited by Micro and Small Enterprises at the time of submission of loan proposals for working capital/term loans uptoRs.5 lacs, shall be refunded if the loan is not sanctioned.

 

Recovery of Processing Charges

 

Processing fee is to be recovered as under:

 

i) For all existing limits including specific BG limits, processing charges be recovered in the month of April (max. upto 31st May) for the entire year. In   the   first   year   of   its   implementation,   charges   be   recovered proportionately only.

ii) For  fresh  proposals,  the  charges  be  recovered  proportionately  for  the remaining months upto 31st March.

iii) In  case  of  adhoc  working  capital  limits,  the  processing  charges  be recovered proportionately for the adhoc limits sanctioned for the period of such limits, irrespective of the financial year.
iv) In  case  of  enhancement  in  credit  limits  during  the  year,  the  charges recovered earlier may have to be appropriated and proportionate charges are to be levied on the enhanced portion for the remaining period in the financial year.

v) Charges once recovered by the bank for a particular period for specified limit will remain valid for the entire financial year.   As such, the revised
charges  in  existing  accounts  where  processing  fee  has  already  been recovered   prior   to   revision   shall   be   effective   at   the   time   of
review/renewal/enhancement.  In other words, the processing charges once recovered in April in existing accounts, prior to the date of revision,
if any, shall remain valid upto 31st March i.e. complete financial year.

 

(i)     Recovery in Fresh Proposals

 

The processing charges in case of fresh proposals may be recovered in stages as follows:

 

-10%  of processing fee on receipt of proposal. However, Regional Head and above may relax the condition on merits of the case.

-  Minimum 50% of processing fee on the amount of limit sanctioned (inclusive of fee charged at the time of receipt of proposal) at the time of handing over letter of sanction and balance  50%  at the time of disbursement.

In case the loan proposal is declined or the limit sanctioned is not availed by  the  customer  within  a  period  of  six  months  the  processing  fee recovered shall be forfeited after giving due notice to the borrower.


(ii)     Sanction of Adhoc/Enhanced Working Capital Limits


- In case of adhoc working capital limits, the processing charges may be     recovered proportionately for the adhoc limits sanctioned for the period of such limits, irrespective of the financial year.
- In  case  of  enhancement  in  credit  limits  during  the  year,  the  charges recovered earlier may have to be appropriated and proportionate charges are to be levied on the enhanced portion for the remaining period in the financial year.

 

Consortium Advances


In  case  of  lending  under  consortium  arrangement  whether  as  a  leader  or  a member bank, the processing charges as stipulated by our bank or as agreed in the consortium, whichever is higher be levied by the branches on the credit limits  sanctioned  to  the  borrower  by  the  bank.  These  charges  would  be  in addition to the lead bank fee, wherever leviable.

Out of Pocket expenses are to be recovered from the borrowers in addition to the processing fee in case such expenses relate to the post-sanction stage of the credit facilities granted to the borrowers.