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Schedule of Penal Charges

(Effective 1st April 2024)

Sr. No. Parameters / Events Description Charges
1. Non-payment of Dues - either interest and / or principal (Penal Charges levied on the amount under default (not on entire outstanding or sanctioned limit) for the period under default). 2% of the amount under default.
2. Breach of Financial Covenants. (Penal Charges levied retrospectively from the reference date on which, covenants are to be tested, for the period of breach). 0.50% of the outstanding amount.
3. Non-Submission or Delay in submission of Stock Statement in succeeding month within timelines stipulated in the Facility Letter / Sanction Letter. (Penal Charges levied from next day of the expiry of the stipulated time period till the receipt of Stock Statement). 0.05% of the sanctioned amount
4. Non-Completion or Delay in completion of Creation & Perfection of Security within timelines stipulated in the Facility Letter / Sanction Letter. (Penal Charges levied from next day of the expiry of the stipulated time period for creation & perfection of security till the security is perfected). 0.25% of the sanctioned amount
5. Non-Renewal of Insurance Policy in a timeline manner or inadequate insurance cover. (Penal Charges levied for the period during which there is either inadequate or no insurance cover). 0.05% of the sanctioned amount
6. Failure or Delay in obtaining External Credit Rating from an agency authorised by the RBI within timelines stipulated in the Facility Agreement. (Penal Charges levied from next day of the expiry of the stipulated time period till external credit rating is obtained on the facility granted by the Bank). 0.50% of the sanctioned amount
7. Non-Submission or Delay in submission of End-Use Certificate within timelines stipulated in the Facility Letter. (Penal Charges levied from next day of the expiry of the stipulated time period till the receipt of End-Use Certificate). 0.05% of the sanctioned amount
8. Non-Submission or Delay in submission of requisite Documents / Certificates / Information as part of Conditions Subsequent, within timelines stipulated in the Facility Letter. (Penal Charges levied from next day of the expiry of the stipulated time period till the receipt of requisite Documents / Certificates / Information). 0.10% of the sanctioned amount
9. Non-Submission or Delay in submission of Audited Balance Sheet within:
  1.    Six (6) months from closure of financial year in case of listed companies. Audited Balance Sheets, if available on the Borrower’s website prior to completion of 6 months, shall be considered as submitted.
  2. Eight (8) months from closure of financial year in case of non-listed / private companies. Audited Balance Sheets, if available on the Borrower’s website prior to completion of 8 months, shall be considered as submitted. 
(Penal Charges levied from next day of the completion of six (6) / eight (8) months as applicable, till receipt of Audited Balance Sheet).
0.05% of the sanctioned amount
10. Non-Submission or Delay in submission of Covenant Compliance Certificate within timelines stipulated in the Facility Letter / Sanction Letter / Facility Agreement. (Penal Charges levied from next day of the stipulated time period till receipt of Covenant Compliance Certificate). 0.10% of the sanctioned amount
11. Non-Submission or Delay in submission of renewal data including latest available financial information one (1) month before the stipulated review date due date. In case of term loans, requisite data to be provided two (2) months before the stipulated review date due date. (Penal Charges levied from next day of the stipulated time period till receipt of renewal data including latest available financial information). 0.05% of the sanctioned amount
12. Drawals in excess of the limit sanction by the Bank (even if such overdrawing has been permitted by the Bank at its sole discretion in such circumstances as may be deemed exceptional by the Bank. (Penal Charges levied for the period during which drawals are in excess of limit sanctioned by the Bank). 0.25% of the excess drawal amount over sanction limit
13. Prepayment of loan (Penal Charges levied on the prepaid loan amount on the prepayment date.
NIL Penal Charges in case of Mandatory Prepayment of loan).
Upto 1% of the prepaid amount

Note:

a.Overall, Penal Charges shall not exceed 3.5% per annum of the sanction limit / outstanding, whichever is higher.

b.The Bank reserves the right to reduce and / or waive any of the above penal charges applicable to a Borrower at its sole discretion.

c.Penal Charges are not applicable in case of Sick Units under rehabilitation and non-compliance on account of natural calamities / extraneous reasons as decided by the bank.

d.In the case of trade credits, structured obligations, rupee/ foreign currency export credit (Pre Shipment Facility / Post Shipment Facility) and other foreign currency loans, the aforesaid provisions related to the payment of Default Charges / Penal Charges shall not be applicable and the Borrower shall be liable to pay default interest/ additional interest (as the case may be), upon default in payment of the outstanding amounts and/or breach/ non-compliance of his/ her/ its obligations in the manner as more particularly stipulated in the terms and conditions of the said facilities under Facility Documents.

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