Service and Penal Charges
Penal Charges
Penal charges are the additional charges levied by the lender on the borrower in case of delay in repayment and/or non-payment of loan by the borrower.
Quantum of Penal Charge
Quantum is the amount of the additional charges levied by the lender on the borrower in case of delay in repayment and/or non-payment of loan by the borrower. The quantum of penal charges shall be reasonable and commensurate with the noncompliance of material terms and conditions of the loan contract without being discriminatory within a particular loan/product category.
Table for Penal Charges
| Sl.No. | Penal Charges in case of Bullet Loans | Penal Charges in Case of EMI Loans |
| 1. | In case of delay in payment of amount due, Penal charges shall be @10% on Principal o/s subject to a minimum of INR 100 and a maximum of INR 3, 000 excluding taxes. | In case of delay in payment of amount due, Penal charges shall be @10% on Principal o/s subject to a minimum of INR 100 and a maximum of INR 3, 000 excluding taxes. |
Bounce Charge/ Penal Charges Grid:-
a) Minimum criteria to levy bounce/ penal charges will be: Rs. 100/- or 10% plus applicable taxes whichever is lower.
b) Maximum criteria to levy bounce/ penal charges will be: Rs. 3,000/- or 10% plus applicable taxes whichever is lower.
| Bounce Charge | |
| Amount | Bounce Fee (excluding GST) |
| 0-2000 | 100 |
| 2001-5000 | 200 |
| 5001-8000 | 300 |
| 8001-10000 | 400 |
| 10000+ | 500 |
Criteria, applicability, exclusion and quantum for above mentioned charges
- 1. Bounce changes are incident based i.e. whenever the repayment instrument (NACH/ECS/PDC) get bounced on the date of presentation of such instruments.
- 2. These bounce charges are being levied by the Lender.
- 3. The presentation of the instrument are as per the NPCI guidelines which is being amended on time to time.
- 4. As per the guidelines issued by NPCI, the above mentioned instrument can be presented once in a month and can be re-presented only twice in a month.
- 5. Minimum criteria to levy bounce/ penal charges will be: Rs. 100/- or 10% plus applicable taxes whichever is lower.
- 6. Maximum criteria to levy bounce/ penal charges will be: Rs. 3,000/- or 10% plus applicable taxes whichever is lower.
- 7. The penal charges mentioned in point no 5 and 6 are applied to an individual customer on a particular loan bearing unique loan number or account and that too only once in a tenure till the date when the final repayment has been done by the customer i.e. the customer may only be able to take new loan only when he has paid all his due including the principal plus the normal interest, any other penal/default charges as levied on him till the date of actual payment.