1. No service charges/inspection charges should be levied on priority sector loans up to Rs.25,000/-
2. For loans above Rs.25,000/- ---- as per H.O. Guidelines.

• 
• 
• 
• 
• 
• 

No penal interest should be charged by banks for loans under priority sector up to Rs.25,000/-. However, the issue of charging penal interests that should be levied for reasons such as default in repayment, non-submission of financial statements etc. have been incorporated in the Lending Policy of the Bank for loans above Rs.25,000/-

• 
• 
• 
• 
• 
• 

Interest shall be charged at a rate as prescribed by Head Office from time to time. Interest shall be charged on this outstanding debit balance on working capital and on reducing balance in case of term loan.

• 
• 
• 
• 
• 
• 

Repayment programme should be fixed taking into account the sustenance requirements, surplus generating capacity, the break-even point, the life of the asset, etc., and not in an "ad hoc" manner. In respect of composite loan up to Rs.50,000/- to artisans, village and cottage industries, repayment schedule may be fixed for term loan component only (subject to SIDBI’s requirements being fulfilled).

In the case of other borrowers affected by natural calamities, banks may convert drawings in excess of the value of security into a term loan repayable over a reasonable period of time and provide further working capital and extend/re-phase the instalements due under term loans.

• 
• 
• 
• 
• 
• 

1. Interest on Working Capital Interest 1.5% below the prevailing fixed/prime lending rate, wherever applicable
2. Funded Interest Term Loan Interest Free
3. Working Capital Term Loan Interest to be charged 1.5% to 3% below the prevailing fixed/prime lending rate, wherever applicable.
4. Term Loan Concessions in the interest to be given not more than 2% (not more than 3% in the case of tiny/decentralized sector units) below the document rate.
5. Contingency Loan Assistance The Concessional rate allowed for Working Capital Assistance.

• 
• 
• 
• 
• 
• 

As per the revised definition, a unit is considered as sick when any of the borrower account of the unit remains substandard for more than 6 months i.e. if the principal or interest remains overdue for a period exceeding one year. The requirement of overdue period exceeding one year will remain unchanged even if the period for classification of account as substandard is reduced in due course, or, there is erosion in the net worth due to accumulated cash losses to the extent of 50% of its net worth during the previous accounting year and the unit has been in commercial production for at least two years. The revised criteria will enable Bank to detect sickness at an early stage and facilitate corrective action for revival of the unit. As per the revised guidelines the rehabilitation package should be fully implemented within six months from the date the unit is declared as potentially viable/ viable. During this six months period of identifying and implementing rehabilitation package Bank/Fls are required to do "holding operation" which will allow the sick unit to draw funds from the cash credit account at least to the extent of deposit of sale proceeds.

• 
• 
• 
• 
• 
• 

A composite loan limit of Rs.1 crore can be sanctioned by banks to enable the SSI entrepreneurs to avail of their working capital and term loan requirement through Single Window.

• 
• 
• 
• 
• 
•