PGB - Upfront Fee

1. For Term Loans (Including DPG) - Other than Retail Segment

Upfront fee is to be charged in lieu of processing charges in case of term loans (including DPG),   as under except term loans under Retail Segment for which separate rates have been prescribed:



UptoRs. 25,000


Above Rs. 25,000 and uptoRs. 2 lakh

Rs. 500/-*

Above Rs. 2 lakh &uptoRs. 50 crore

1.25% of the loan amount**

Above Rs. 50 crore&uptoRs. 100 crore

0.75% of loan amount,
Minimum Rs. 62.50 Lakh

Above Rs. 100 crore

0.50% of loan amount,
Minimum Rs. 75.00 Lakh

For Schemes where refinance is obtained

As    specified    by    refinancing agency.


*    In case of advances to Micro Enterprises uptoRs. 2 lakh and Self Help
        Groups (SHGs) below poverty line, no upfront fee is to be recovered.

** Upfront fee for term loans above Rs.2 lakh and uptoRs. 25 lakh to Micro Enterprises/Agricultural activities is to be charged  @  0.60%+ST of the loan amount.

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.

Upfront  fee  is  to  be  recovered  as  a  one  time  fee.  Where  financing  is  in participation  with  financial  institutions,  upfront  fee  be  levied/shared  in  line with  those  charged  by  financial  institutions.  However,  this  fee  is  not  to  be charged for the schemes where refinance is obtained  (e.g. NABARD assisted/ refinanced projects).


The processing/evaluation fee in NABARD assisted/Refinanced Projects is to be levied as under:

 “For advances where capital outlay of the project does not exceed Rs.2 lakh, no charges be levied.


Where  capital  outlay  of  the  project exceeds Rs.2  lakh branches  may  charge evaluation fee once-and-for-all (in lieu of processing fee) @ 0.60% of the capital outlay of the project. The evaluation fee covers the cost relating to pre-sanction, inspection/visit  fee,  legal  fee  for  examination  of  title  deeds,  encumbrance certificate fee etc.   However, expenses relating to follow up of utilization in the form  of  post-sanction,  supervision  etc.,  branches  may  charge  out  of  pocket expenses in addition to evaluation.


2. For Term Loans (under Retail Loan Segment)


For   Term   Loans (Under   Retail   Loan Segment)

Charges @

Housing Loans

For Loan Amount uptoRs.  100 lacs-0.50%*  of  loan  amount, Maximum Rs. 20000/-
*For Defence Personnel- NIL

Earnest Money Deposit (EMD) Scheme


Car Loans

1.00% of loan amount Maximum Rs.6000/-
(Including Documentation charges)

Two Wheeler Loan


Loan against Mortgage of IP

0.90%   of   the   loan   amount.
Maximum Rs.45,000/-

Education Loan (PGB Vidyalakshyapurti)

For Studies in India- NIL
For studies abroad- 0.50%, Max.Rs.5000/- (Refundable)

Personal Loans

.80%* of loan amount
*For Defence personnel- NIL

Personal loan to Pensioners


However,  while  recovering  charges,  circulars  issued by  Credit  section
HO on the subject from time to time may be referred.


3. For Term Loans (Other Schemes)


For   Term   Loans (Other Schemes)  


Traders, Future Lease Rentals, Doctors,

0.70% of loan amount.



Upfront fee is to be levied in the same way as processing charges are recovered in stages as under:

       - 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 term loan sanctioned is not availed by the customer within a period of  6 months, upfront fee recovered shall be forfeited after giving due notice to the borrower.