InterestRates

Revision on interest rates on loans & advances

In line with the regular revision in repo rate and changes in interest rate on SLR by RBI from time to time, most of the Banks are revising interest rates on advances. It has become imperative for our Bank also, to revise our interest rates on advances, so as to maintain our competitive edge in the market.

In view of the above, our Board revised interest rates on various loans & advances & penal interest on overdue loan accounts of the Bank, vide resolution nos. 3074,3075 and 3093, as detailed below:

Head of Loans/Advances Rate of Interest(%)

CKCC/Crop loan/RMG/JLG

Up to Rs.3,00,000/- durinq subvention period 7.00
Up to Rs.3,00,000/- after subvention period 13.00
Above Rs.3 00,000/- 14.00

CKCC / CROP LOAN IN CASE OF NURSERY CROPS

Up to Rs.3,00,000 during subvention period 7.00
Up to Rs.3,00,000/- after subvention period 10.70
Above Rs.3,00,000/- 10.70

Agri. Gold Loans ( No subvention)

Rythu Swarna Gold Loan (RSWGL) 8.50
Aqri. Gold loans without subvention (AGLNS) 10.00
Aarl. Term loans aqainst pledge of gold (ATLSW) 12.00
Non Aq. Gold loans up to Rs.2.00 lakh 12.00
Non-Aq. Gold loans above Rs.2.00 lakh 12.50
Farm mechanization / power tillers / Harvesters 12.00
Other Aqriculture term loans including Rural Godowns 12.00
Dairy, sheep and other allied activities 12.50
Kisan Chakra Loans - 2 wheeler / 4 wheeler 12.00
Non-Aqrl Term loans ( RTO, BE,RT,P&SE,RCC)
Up to Rs.50000/- 12.50
Above Rs.50000/- 13.50
SSI 13.00
General Credit Card ( Max. limit Rs.25000/-) 14.00
SCCGN ( Max. limit Rs.50000/-) 13.00
NFSJL Up to Rs.50000/- per qroup 13.00
NFSJL Above Rs.50000/- per qroup 14.00

SHGCC ( both farm sector and non-farm sector)

NRLM Districts (Guntur & East Godavari)
Up to Rs.3,00,000/- ( with subvention) 7.00
Above Rs.3,00,000/- 13.50
Non-NRLM Dist. ( West Godavari) - Total Loan Amount 13.50
Housing loans for construction / purchase of plot - General 8.75
Housing Loans - Rural Housinq Fund (RHF) 8.61
Housinq Loans - Urban Housinq Fund (UHF) 8.61
Housing loans for repair/renovation 10.00
Educational loans up to Rs.4.00 lakh 11.50
Educational loans above Rs.4.00 lakh 12.50
Staff Children Education Loans up to Rs 4.00 lakh 10.50
Staff Children Education Loans above Rs 4.00 lakh 11.50
SOD to traders 12.00
SOD/Term loan to traders under MSME 12.00
OCC up to Rs.2.00 lakh 12.00
OCC above Rs.2.00 lakh based on ratinq
A+++ - 12.50
A++ 13.00
A+ 13.25
A 13.50
B 15.00
C 15.00
Commercial Real Estate 13.00
Solar home liqhtinq 12.50
Clean loans/TOD/COD 18.00
Personal loans for four wheeler 10.00
Personal loans for two wheeler 11.00
Property Overdraft (POD)/ Property Term Loan (PTL) 11.00
Loans aqainst NSC,KVP,LIC 16.00
Other Term loans 16.00
Produce loans 12.00
Loans against Merchandise (LAMS) Maximum limit of Rs.50.00 lakh
Farmers 12.00
Traders 15.00
Invoked Bank Guarantees 18.00
Returned bills from the date of purchase / discount till the date of adjustment 18.00

Overdue / penal rates of interest & Allowing Ad-hoc Limits:

A.

Overdue Interest Rate Over the Applicable Normal Rate

%

Aggregate credit limits exceeding Rs.25000/- in the case of priority sector advances and Rs.SOOD/- in the case of Non-priority sector advances 2.00

B.

Penal interest over the Applicable Normal Rate

%

i) For Non-submission/delayed submission of monthly stock statements to be charged for delayed period 1.00
ii) For Non-submission of renewal proposal / additional informatio n / requirements on the renewal proposal for the delayed period and other cases
a) Outstanding exceeds limit/Drawing Power in the accounts including unpaid interest for a period exceeding seven days from the date of closure of the quarter 2.00
-b) Working Capital limits which are overdue for renewal even if the limits are reviewed (from the due date of the limits till date of submission of renewal application with complete information) 2.00
c) For OCC / SOD limits of Rs.10 Lakhs & above, where submission of Audited Balance Sheet / Financial Statements is required, Penal Interest is to be charged for non-submission of such statements within 6 months from the date of closure of Financial Year 2.00
iii) Loans pre-closed by taking over by other banks / institutions ( on loan balance as on date of closure) 2.00
iv) Overdue instalments / interest in case of term loans and entire-nutstanding amount in case of recalled advances 2.00
v) Invoked Bank Guarantees and deferred payment Guarantees 2.00
vi) Returned bills from the date of purchase/discount till the date of adjustment 2.00
vii) The total overdue interest / penal interest to be charged on account of any of the above reasons should not exceed 2.00
viii) Allowing Ad-hoc Limits 2.00
iii) Loans pre-closed by taking over by other banks / institutions ( on loan balance as on date of closure) 2.00
iv) Overdue instalments / interest in case of term loans and entire-nutstanding amount in case of recalled advances 2.00
v) Invoked Bank Guarantees and deferred payment Guarantees 2.00
vi) Returned bills from the date of purchase/discount till the date of adjustment 2.00
vii) The total overdue interest / penal interest to be charged on account of any of the above reasons should not exceed 2.00
viii) Allowing Ad-hoc Limits 2.00

General Conditions:

  • The interest rates mentioned are per annum and are to be applied on monthly basis for Non-Agricultural advances as per RBI norms.
  • The aggregate fund based limits (Term loan and working capital limits) enjoyed by the borrower shall be taken together into consideration to decide the applicable rate of interest.
  • Penal interest shall not be charged in the following cases:
    • a. All Priority Sector advances with sanctioned limits up to Rs.25,000/-
    • b. All Non-Priority Sector Loan accounts with sanctioned credit limits up to Rs.5,000/-
  • On Agricultural Advances, interest is to be charged on principal amount up to the due date of the principal/instalment.
  • While sanctioning / conveying sanction of credit facilities, it should be specifically brought to the notice of the borrowers in writing that Bank is at liberty to revise the rate of interest from time to time without reference to the borrower.
  • Branches have to communicate to the borrowers in writing regarding the changes in the applicable interest rates on their advances, wherever there is a hike for the existing advances.

The above mentioned interest rates come into force, w.e.f. 01.04.2020, for fresh sanctions only.

Branches are advised to take note of the above revision in interest rates & display a copy of this circular in the branch notice board without fail & confirm having displayed the same in their notice board to Credit Department, Head Office, in the format prescribed in Annexure I.

T Kameswara Rao

Chairman