Schedule of Charges

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-closure Charges	Nil
Repayment Schedule	Nil
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 Notice	Nil
Legal Charges	As Per Actuals
No Due Certificate (NDC)/No Objection Certificate (NOC)	Nil
Duplicate NOC	Nil
Pledge Creation Fees	Nil
De-Pledge Fees	Nil
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 Number	Opening Balance	Loan Repayment	Interest Charged	Principal	Closing Balance
1	1,00,000	17,333	667	16,667	83,333
2	83,333	17,333	667	16,667	66,667
3	66,667	17,333	667	16,667	50,000
4	50,000	17,333	667	16,667	33,333
5	33,333	17,333	667	16,667	16,667
6	16,667	17,333	667	16,667	0
Total		1,04,000	4,000	1,00,000

*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 Number	Opening Balance	Loan Repayment	Interest Charged	Capital Repaid	Closing Balance
1	1,00,000	17,058	667	16,391	83,609
2	83,609	17,058	557	16,500	67,109
3	67,109	17,058	447	16,610	50,498
4	50,498	17,058	337	16,721	33,777
5	33,777	17,058	225	16,833	16,945
6	16,945	17,058	113	16,945	0
Total	–	1,02,346	2,346	1,00,000	–