Penal Charges on Loan Accounts
Penal Charges:
Penal Charge (as tabulated below) will be recovered in case of default other than normal interest rate, for the default events:
| Default Events | Penal Charges (Per Annum) w.e.f 01.04.2024 |
|---|---|
| Overdrawing/excess drawing in CC/OD account beyond the drawing power or Sanctioned limit including adhoc/ temporary sanctions, whichever is lower. | 3% |
| Non-submission of renewal papers beyond the tenability period | 3% |
| Non-submission of Stock/Book Debt Statements within the stipulated time period as per sanction terms | 3% |
| Default in repayment obligation | 3% |
- Penal charges as mentioned above shall be applicable on all credit facilities irrespective of nature, type etc.
- The penal charges shall be levied on the default amount (excluding penal charges levied previously) in the account as on the date of default in case of non-payment of repayment obligations/overdrawing in accounts
- Charges shall be levied only for the default period on pro rata basis.
- Notification
August 1, 2026
July 25, 2026
September 22, 2025
September 10, 2025