SECTION 'B'
SERVICE CHARGES ON CREDIT RELATED ISSUES
I.A PROCESSING FEES & PREPAYMENT FEES FOR
RETAIL CREDIT/ SCHEMATIC ADVANCES
Name of Items |
Revised Rates |
| Processing Fees |
Prepayment Fees |
| Allahabad Bank Saral Loan |
1% of Loan amount, Minimum Rs.
500 |
2% of the Outstanding Balance if
prepaid within 1 year, after that 1% only in case of takeover |
| Personal Loan to Doctors &
Medical Practitioners |
1% of Loan amount, Minimum Rs.
500 |
NIL |
| Personal Loan to all Pensioners |
0.50% of Loan amount, Minimum Rs.
200 |
NIL |
| Two Wheeler Loan |
Rs. 250 |
2% of Outstanding Balance if
prepaid within 1 year, after that 1% only in case of takeover |
| Car Loan to salaried persons |
NIL |
2% of Outstanding Balance if
prepaid within 1 year, after that 1% only in case of takeover |
| Car Loan to others. |
1% of the loan amount, Minimum Rs. 2,000 |
2% of Outstanding Balance if
prepaid within 1 year, after that 1% only in case of takeover |
| Loan against NSC/KVP |
1% of loan amount, Minimum Rs.
250 |
NIL |
| Educational Loan |
NIL |
NIL |
| @Housing Finance |
0.50% of Loan amount, Maximum
Rs.10,000 |
2% of Outstanding Balance if
prepaid within 1 year, after that 1.50% only in case of takeover |
| Housing Finance for furnishing,
repair etc |
0.50% of Loan amount, Minimum Rs.
500 (Allahabad Bank Employees- NIL) |
NIL |
| All Bank Rent |
Upto Rs. 25 lac : 1%, Minimum Rs.
2,500> Rs. 25 lac to Rs. 150 lac : 0.50%, Min. Rs. 25,000> Rs.
150 lac : 0.25%, Minimum Rs. 75,000 |
2% of Outstanding Balance if
prepaid within 1 year, after that 1% only in case of takeover |
| All Bank property |
Upto Rs. 25 lac : 1%, Minimum
Rs.2,500> Rs. 25 lac to Rs. 150 lac : 0.50%, Min. Rs. 25,000> Rs.
150 lac : 0.25%, Min. Rs. 75,000 |
2% of Outstanding Balance if
prepaid within 1 year, after that 1% only in case of takeover |
| All Bank Abhushan |
Loan upto Rs. 50000 : Rs.500
Loan
above Rs. 50000 : Rs.1000 |
NIL |
| Merchant Credit / AL-Trade Scheme |
Rs. 200- per lac, Minimum Rs.1,000
Maximum Rs. 20,000 |
2% of Outstanding Balance in case
of takeover |
| Overdraft facility in Savings Bank
Accounts |
NIL |
NIL |
| All Bank Gold Loan Scheme |
NIL |
NIL |
| All Bank Gyan Dipika |
NIL |
NIL |
| Personal Loan for LICI Employees &
Officers |
1% of Loan amount, Minimum Rs. 500 |
NIL |
| Personal Loan to LICI Agents |
1% of Loan amount, Minimum Rs. 500 |
NIL |
| Clean Overdraft facility for LICI
Officers |
NIL |
NIL |
| Housing Loan to LICI Employees,
Officers & Agents |
0.50% of Loan amount, Minimum Rs.
10,000 |
NIL |
| Short term Loans for Financing by
local Housing Board & Development Authorities for Allotment of
Residential Plot/Flat House |
Loan amount upto Rs. 50,000: Rs.250
Loan amount above Rs. 50,000: Rs.500 |
NIL |
@Housing Finance: Conversion from floating to fixed & vice versa Charges- From fixed to floating: 2%, From floating to fixed: 0.5% (both on Outstanding Balance for onetime).
1.B
PROCESSING FEES FOR SANCTION/RENEWAL
OF ADVANCES OTHER THAN RETAIL CREDIT (BOTH FUNDED & NON FUNDED)
| Name of the Items |
Revised Rates |
| Proposals up to Rs.25,000 |
Nil |
| Proposals above
Rs.25,000 up to Rs.2 lacs |
Rs.250 per lac or
part thereof, Minimum Rs.250 |
| Proposals above Rs.2 lacs |
Rs.250 per lac or part thereof,
Maximum Rs.10 lacs |
| Restructuring of Debt |
50% of the usual charges |
| Adhoc Sanction & Short
Term Loan |
| Above Rs.20,000 and upto Rs.50,000 |
Rs.500 |
| Above Rs.50,000 and
upto Rs.25 lacs |
0.25% of the ad-hoc
facility,
Minimum Rs.750,
Maximum Rs.5,000 |
| Above Rs.25 lacs and
upto Rs.5 crore |
0.20% of the ad-hoc
facility, Minimum Rs.6250, Maximum Rs.1,00,000 |
| Above Rs.5 crore |
0.20% of the ad-hoc
facility,
Maximum Rs.10,00,000 |
2. LEAD
BANK CHARGES:
Charges for leadership in the Consortium Accounts, inclusive of the accounts, where the Bank is the leader in financing Term Loan
|
Name of the
Items |
Revised
Rates |
| Charges for Leadership in the consortium Account |
a. 0.25% p.a. of the aggregate funded limit from the banking system, negotiable but not below 0.125%, Maximum Rs.35 lac
b. In case of sick units/ units under restructuring, 0.12% of the aggregate funded limit from the banking system both working capital and term loan will be realized. |
3. UPFRONT
FEES
|
Name of the Items |
Revised
Rates |
|
Fresh Term Loan sanctioned excluding loans sanctioned under
Retail Credit |
1% of the Loan amount for over Rs.50,000. |
|
Standby credit assistance towards redemption of CP issued/to be issued by the borrower (to be charged on pro-rata for a Min. period of 3 months) |
1% per annum basis |
| Review/ Renewal of Term Loan |
Rs. 50 per Rs. Lac, Minimum Rs. 500, Maximum Rs. 50,000
Except Retail Credit Loans. |
Procedure for realization of Processing Charges/Upfront Fees.
For Working Capital
- The Processing Charges will be realized while sanctioning the accounts on per annum basis (minimum one year).
- The full Processing Charges will be realized while reviewing the accounts on per annum basis from the date of sanction.
- In case of Operational review for short period, a Processing Fee on pro-rata basis for the renewal period will be realized for minimum 1 quarter and thereafter multiple of quarters. The length of the renewal period will be reckoned from the original review date or the extended review date till the period for which operational review is done.
For Term Loan:
In case of fresh Term Loan, where Upfront fees at the rate more than 0.50% is being realized, no Processing Fee in the Term Loan will be levied additionally. However if it is less than 0.50%, normal Processing Fee will be realized.
4. CHARGES
FOR CREATION OF MORTGAGE
| Credit
limits (F & NF) |
Revised
Rates |
| Below Rs.10 lacs |
Rs.1,500 |
| Rs.10 lacs to Rs.25 lacs |
Rs.4,000 |
| Above Rs.25 lacs to Rs.50 lacs |
Rs.8,000 |
| Above Rs.50.00 lacs |
Rs.12,000 |
Note :
a) Not applicable for sanction under Allahabad Bank Housing Finance Scheme, for such cases only actual expenses incurred for creation of mortgages are to be realized.
b) Charges for creation of mortgage will be calculated on the amount of the mortgage and not on the value of the property, irrespective of the nature of the credit facility.
5. CHARGES FOR DOCUMENTATION
| Credit limits
(F & NF) |
Revised Rates |
| Up to Rs.25,000 |
Nil |
| Above Rs.25,000 to Rs.50,000 |
Rs.100 |
| Above Rs.50,000 to Rs.2 lacs |
Rs.500 |
| Above Rs.2 lacs to Rs.5 lacs |
Rs.1,000 |
| Above Rs.5 lacs to Rs.20 lacs |
Rs.1,200 |
| Above Rs.20 lacs to Rs.1 crore |
Rs.2,500 |
| Above Rs.1 crore |
Rs.3,000 |
Note :
No documentation charges are to be realized under
Allahabad Bank Housing Finance Scheme.
6. INSPECTION & SUPERVISION CHARGES
Credit
Limits |
Revised
Rates |
| Up to Rs.25,000 |
Nil |
| Above Rs.25,000 to Rs.50,000 |
Rs.100 per visit, Maximum Rs.500 per year |
| Above Rs.50,000 to Rs.1 lac |
Rs.200 per visit, Maximum Rs.1000 per year |
| Above Rs.1 lac to Rs.10 lakhs |
Rs.500 per visit, Maximum Rs.2500 per year |
| Above Rs.10 lakhs to Rs.100 lakhs |
Rs.750 per visit, Maximum Rs.3000 per year |
| Above Rs.100 lakhs |
Rs.2000 per visit, Maximum Rs.10000 per year. |
7. COMMITMENT
CHARGES
| Commitment
Charges |
Revised
Rates |
| For Funded Working Capital Limits of Rs.1 crore & above |
1% p.a. on the unutilized portion of the operating working capital limits subject to a tolerance level of 15% of such limits |
8. CHARGES ON PURCHASE/DISCOUNT OF CHEQUES/BILLS
8.A Charges on purchase/discount of Cheques
|
Name of Items |
Revised
Rates |
| Charges on purchase/discount of Cheques |
35 paisa% plus Collection Charges as applicable to collection of Cheques/Bills for respective slabs & out of pocket expenses. |
8.B Charges on
purchase/discount of Bills
i) DA Bills:
|
Name of Items |
Revised
Rates |
| DP Bills |
Interest/penal interest, as applicable, for the period of credit plus Normal Collection/Service Charge for collection plus out of pocket expenses. No discounting charges to be realized additionally |
For DA Bills:
- Applicable interest rate from the date of discounting bills till the date of maturity shall be charged.
- Penal interest, as applicable, will be recovered for the period of default from the borrower.
- Prescribed service charge for collection of bills and out of pocket expenses will be realized.
ii) DP Bills :
|
Name of Items |
Revised
Rates |
| DP Bills |
Discount charges @ 0.50% of the Bill Amount (for a period not exceeding 7 days) plus normal collection charges/ Service Charges (Normal Interest rate beyond 7 days) plus out of pocket expenses will be realized. |
9. COMMISSION ON
BANK GUARANTEE
9.(A) Performance Guarantee
|
Amount Slab |
Revised Rates |
| Up to Rs. 5 Crores |
Rs.200 + 0.55% per Quarter with
minimum of 2 Quarter, Minimum Rs.500 |
|
Above Rs. 5 Crores to Rs. 10 Crores |
Rs.600 + 0.50% per Quarter with minimum of 2 Quarter |
|
Above Rs. 10 Crores |
Rs.1000 + 0.45% per Quarter with minimum of 2 Quarter |
9.(B) Financial Guarantee
|
Amount Slab |
Revised Rates |
| Up to Rs. 5 Crores |
Rs.200 + 0.75% per Quarter with minimum of 2 Quarter,
Minimum Rs.500 |
|
Above Rs. 5 Crores to Rs. 10 Crores |
Rs.600 + 0.70% per Quarter with minimum of 2 Quarter |
|
Above Rs. 10 Crores |
Rs.1000 + 0.60% per Quarter with minimum of 2 Quarter |
9.(C) General
| Sl No. |
Name of Items |
Revised Rates |
| i) |
Renewal of
Guarantee |
The Charges will be the same as those applicable for issuance of fresh Guarantees, except that the claim period be not charged for, if the renewal is effected before the expire date of the original Guarantee. |
|
ii) |
Commission
on Amendments |
For amendments other than amount, period and purpose of Guarantee, commission at the flat rate of Rs. 500 will be recovered. |
|
iii) |
Guarantee
on account of payment of Statutory dues |
Field functionaries may consider proposal for issuing Guarantees favouring Customs/Excise Authorities for payment of Statutory dues. As the risk factors for issuing of such type of Guarantees are very high, no concession in Commission will be permitted for issuing such type of Guarantees. However, Guarantee should not be issued in favour of Income Tax/Sales Tax authorities for payment of statutory dues without obtaining specific permission from Head Office. |
|
iv) |
Cancellation Charge |
It is observed that borrowers are reluctant to arrange for return of original Guarantee, duly expired, from the beneficiaries, as a result of which the Branches are not taking prompt action to delete the outstanding Guarantees from the Register, which bear negative impact on computation Capital Adequacy.
In this regard, incase of Guarantees executed in favour of parties other than Government Departments, the Branch/es will be required to send a Registered Letter to the beneficiary, provided no demand or claim has been made by the beneficiary under the Guarantee, indicating therein clearly that if the original Guarantee is not returned to Bank within 15 days after the date of expiry thereof, the Bank will delete the said outstanding Guarantee from its Register/Book of Accounts. Accordingly, the following cancellation charges will be realized from the respective borrowers for non-return of original Guarantee after the date of expiry. The realization of Cancellation Charge will not be applicable for Guarantees issued to Government Authorities.
| Amount of Guarantee |
Cancellation
Charge |
| a. Upto Rs. 10 lacs |
Rs. 500 per Guarantee |
|
b. Above Rs. 10 lacs but below Rs. 20 lacs |
Rs. 1000
per Guarantee |
|
c. Rs. 20
lacs and above |
Rs. 2000
per Guarantee |
|
|
v) |
Refund of
Guarantee Commission |
For Gurantees tendered for cancellation, before the date of expiry, only a portion of the Guarantee Commission already recovered be refunded to the Customer. Accordingly an amount computed at half the original rate for the unexpired period of Guarantee less 3 months may be recovered. |
|
vi) |
Additional
Commission |
Additional Commission at applicable rates will be levied on the extended period of validity of Guarantees due to restraints imposed on Banks by Court orders, at the instance of Customers form meeting their obligation to beneficiaries when the Guarantee is invoked. In order to protect the Bank against possible disputes from customers, the following clause may be incorporated in the Counter Indemnity to be obtained from customers:
“That if for any reason the Bank is prevented by any action initiated by me/us from making payment to the beneficiary on the Guaranteed amount, I/We will also be liable to pay the Bank Guarantee Commission for the period for which I/We delay by such action, the payment of discharge of the Guarantee.” |
9.D Letter of Comfort in lieu of Bank Guarantee
In case letter of comfort is issued in lieu of Guarantee issued by the Bank, the Commission will be realized like the commission for Financial Guarantee as in 9(B) with a minimum for two quarter.
10. CHARGES ON INLAND
LETTER OF CREDIT (LC)
General :
- Commission must be charged when an LC is opened & amended and no
refund may be allowed in any circumstances whatsoever, whether a
credit is cancelled, partly availed of or expires wholly un-availed
of.
- When the Inland Letter of Credit opened by a bank is
advised/confirmed by its own branch, the advising/confirming branch
of the bank will not be entitled to the advising/confirming
commission.
- In case of invocation of Guarantee, devolvement of Letter of Credit
and if it is not regularized within a period of 30 days, all such
Concessions will be withdrawn.
- Out of pocket expenses such as postage, telegram, telex, fax cable
etc shall be collected in addition to the usual charges as detailed
below:
| Name of the Items |
Revised Rates |
| At the time of opening |
| 10.A Usance Charge (according to
the tenor of the bill at the rate of) |
|
(a) Bills up to 7 days |
0.25% of the Bill, Min. Rs. 250 |
(b) Bills over 7 days to
3 months |
0.50% of the Bill
Min. Rs.300 |
| (c) In excess of 3 months. |
0.50% of the Bill
for the first three months plus 0.25% p.m. in excess of three
months, Min. Rs.500 |
| 10.B Commitment Charge |
| For the period of liability i.e. from the date of opening of credit to the last date of its validity |
0.25% of the LC amount for every period of three months or part thereof. |
Note :
| LCs up to Rs. 5 crores – |
Normal rate as above . |
| LCs above Rs.5 crores up to Rs.10 crores : |
Up to Rs.5 crores normal rate & beyond Rs.5 crores up to Rs.10 crores 85% of the normal rate. |
| LCs above Rs.10 crores : |
Up to Rs.10 crores as above & beyond Rs.10 crores 70% of the normal rate. |
The above concessions for Inland LC above Rs. 5 crores is proposed to have more high value business |
| Name of the
Items |
Revised Rates |
| 10.C Amendment Charge |
| a. If LC is amended by way of increase in amount |
Both usance & commitment charges shall be levied on the amount of increase. Min. Rs.100 |
| b. If LC is amended by way of extension of period.
|
0.25% of the LC amount for every extended period of three months or part thereof. Min. Rs.100 |
| c. Amendment other than
above |
Rs.100 per occasion |
| 10.D Revolving
Letter of Credit |
| a. Opening Charge |
Normal LC opening charge |
| b. Reinstatement Charges |
On each reinstatement, usance charges according to the tenor as stated above and Commitment charge of 0.25% on the reinstated amounts only. |
| 10.E LC advising
charge |
|
(When advising Inland LC opened by Correspondent Banks, which shall include Letter of Authority/Order to negotiate but does not carry confirmation, the advising bank shall levy advising commission) |
0.05% on each LC, Min. Rs.500 |
| 10.F LC
Confirmation charge |
| (If, in advising bank confirm a Correspondent’s credit it should collect a commitment charge for the full validity of the credit) |
@0.20% for every quarter or part thereof, Min. Rs.500 as well as Usance charges according to the tenor of the bill at the rate specified in 10.A above. |
| 10.G Advise of
transfer in transferable LCs |
| (Whether full or part and whether endorsed on the credit itself or not) |
Rs.200 for
each advice of transfer |
| 10.H Acceptance Charge |
| (Commission on LC calling for usance bills to be drawn on and accepted by the bank) |
0.20% of the bill
per month, Min. Rs.500 |
|
10.I LC Negotiation
|
| Negotiating Branch shall levy negotiating charges at the following
rates
: |
| Bills : (a) Up to
Rs.2.50 lacs |
0.40% of the bill,
Min. Rs.500 |
| (b) Over Rs.2.50 lacs |
0.25%, Min. Rs.1,000 plus discount at applicable rate of interest from the date of negotiation to date of reimbursement. |
| 10.J Charges for giving
guarantee for discrepant documents. |
0.25%, Min. Rs.500 |
| 10.K Clean payment received under LC |
Rs.200 flat |
| 10.L Attestation of Commercial Invoice subsequent to negotiation |
Rs.20 per invoice Min. Rs.50 in each occasion. |
| 10.M Non-payment/ non-acceptance of demand/usance bills of exchange on presentation/on due date |
0.10% Min. Rs.100 |
| 10.N Allocation of sub-limit |
Rs.5,000 p.a. for allocation of limits to each branch |
| 10.O Charges for retirement of bills under LCs. |
0.25%, Minimum Rs.100 |
| 10.P Letter of Comfort in lieu of Letter of Credit |
In case letter of comfort is issued in lieu of Letter of Credit and extending the usance period of Inland Letter of Credit, the Commission will be realized like the commission for Usance Letter of Credit (Both Commitment charges and Usance Charges for the first case and only Usance Charges in the second case).
Similar charges may be considered for Buyers Credit issued by bank in case of Import Transactions. |
11. PREPAYMENT CHARGES FOR OTHER THAN
RETAIL CREDIT
At present there is no specific rate for prepayment charges in the circular, and it is stipulated on case-to-case basis in the sanction letter. However, it is recommended to consider the same as under:
|
Term Loan amount |
Revised Rates |
| All loans upto Rs.10 lac |
In case of Term Loan, if liquidated out of own source/ own generation- Nil.
In case availing loan from some other Bank/institution- 1% of the outstanding loan plus tax. |
| All loans above Rs.10 lac |
1% of the outstanding loan plus
tax. |
NOTE:
- Postage and other Out of Pocket Expenses to be realized on actual basis over and above the Service Charges.
- ‘Service Tax’ to be levied extra as per circularized instruction.
- Reporting: In case of limit sanctioned by MCBOD, reduction/waivement of Service Charges mentioned in Section B if permitted, the same should be reported to MCBOD within 60 days from the date of such sanction.
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