Schedule of Charges (In Rs.)
|Rate of Interest (Flat or Reducing) *||8% to 24% Per Annum|
|Loan Tenure||12 to 24 Months (Renewal Basis)|
|Loan Processing Fee||2% of the Sanctioned Loan Amount or ₹ 1000 + GST (whichever is higher)|
|Installment Bouncing Charges||₹ 500 + GST|
|Pre-payment in Part or Full||Nil|
|Late payment/ Delay/Overdue interest charges||2% Per Month on Overdue Amount|
|CIBIL Report Retrieval Fee||Nil|
|Legal Charges||As Per Actuals|
|No Due Certificate (NDC)/No Objection Certificate (NOC)||Nil|
|Pledge Creation Fees||Nil|
|Commitment Charges / Non-Utilisation Fee|
(Applicable for Overdraft Facility)
|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 Number||Opening Balance||Loan Repayment||Interest Charged||Principal||Closing Balance|
*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 Number||Opening Balance||Loan Repayment||Interest Charged||Capital Repaid||Closing Balance|