Schedule of Charges (In Rs.)

Rate of Interest (Flat or Reducing) *8% to 24% Per Annum
Loan Tenure12 to 24 Months (Renewal Basis)
Loan Processing Fee2% of the Sanctioned Loan Amount or ₹ 1000 + GST (whichever is higher)
Installment Bouncing Charges₹ 500 + GST
Pre-closure ChargesNil
Repayment ScheduleNil
Pre-payment in Part or FullNil
Late payment/ Delay/Overdue interest charges2% Per Month on Overdue Amount
CIBIL Report Retrieval FeeNil
Legal NoticeNil
Legal ChargesAs Per Actuals
No Due Certificate (NDC)/No Objection Certificate (NOC)Nil
Duplicate NOCNil
Pledge Creation FeesNil
De-Pledge FeesNil
Commitment Charges / Non-Utilisation Fee
(Applicable for Overdraft Facility)
Nil
Cheques/ACH swapping₹ 500 + GST
Non-Registration of NACH₹ 1500 + GST Every Month
e-NACH cancellation without enabling alternative e-NACH₹ 1500 + GST Every Month

*What is meant by flat interest rate?

In flat interest rate method, the interest rate is calculated on the total principal amount. The interest rate and the payable amount for every month remains constant.

For example, if you take a loan of ₹ 1,00,000/- with a flat rate of interest of 8% p.a. for 6 months.

Total interest charged = ₹ 4,000/- (8% of ₹ 1,00,000/- for six months)

EMI = ₹ 17,333/- Monthly (~₹ 16,667/- is the principal payment + ₹ 667/- is the interest payment)

Total re-payment done in 06 Months Loan tenure = ₹ 1,00,000 + ₹ 4,000 = ₹ 1,04,000/-

The repayment schedule is as below:

Repayment NumberOpening BalanceLoan RepaymentInterest ChargedPrincipalClosing Balance
11,00,00017,33366716,66783,333
283,33317,33366716,66766,667
366,66717,33366716,66750,000
450,00017,33366716,66733,333
533,33317,33366716,66716,667
616,66717,33366716,6670
Total 1,04,0004,0001,00,000 

*What is meant by reducing interest rate?

In reducing rate, the interest rate is accrued on the outstanding loan amount. The principal amount is reducing with each re-payment (EMI), which means that interest being paid also goes down gradually, so it is calculated against the remaining loan amount or outstanding balance, rather than the original principal amount.

For example, if you take a loan of ₹ 1, 00,000 with a reducing rate of interest of 8% p.a. for 6 months, then your principal amount would reduce with every repayment. The repayment schedule is as below:

Repayment NumberOpening BalanceLoan RepaymentInterest ChargedCapital RepaidClosing Balance
11,00,00017,05866716,39183,609
283,60917,05855716,50067,109
367,10917,05844716,61050,498
450,49817,05833716,72133,777
533,77717,05822516,83316,945
616,94517,05811316,9450
Total1,02,3462,3461,00,000