SME Loan

Charge type - Small Medium Enterprise (SME) Term Loan / Drop line / Over Draft (OD)/ Hybrid Over Draft (OD)

Details

Processing Fees

Up to 3% on sanctioned amount + applicable taxes

Asset Valuation & Verification
(Term loan) (for Partially Collateralised Business Loan)

Up to 1% of loan amount + applicable taxes

Facilitation Fee*
* A facilitation fee is levied on the customer to cover the company’s costs related to facilitating the transaction between the borrower and LTF. It is based on acquisition expenses including digital processing, manpower and other services.

For loans with Sanction up to Rs. 25 lakhs - Up to Rs. 5,000/- + applicable taxes
For loans with Sanction above Rs. 25 lakhs – Up to Rs. 10,000/- + applicable taxes

EMI Dishonour/Bounce Charge*
*A bounce charge is a charge for
(i) dishonour of any repayment instrument; or
(ii) non-payment of instalment(s) on their respective due dates due to dishonour of payment mandate or non-registration of the payment mandate

As shown in the table below

Penal Charge/Late Payment Charge (LPC)

Up to 2% per month (p.m.) on overdue EMI + applicable taxes

Part Prepayment Charges (For Term Loan):

Up to 2% on total partprepayment amount + applicable taxes

Part Prepayment Charges (for Dropline Overdraft / Hybrid Overdraft)

Nil, Part - prepayment of Loan will not amount to limit reduction.

Original Title Documents (OTD) late collection charge (Term Loan) (for Partially Collateralised Business Loan)

Rs. 35 per day + applicable taxes

Annual Maintenance Charges (AMC) (For Term Loan):

NIL

Annual Maintenance Charges (AMC) (for Dropline Overdraft)

0.5% + applicable taxes, on the Dropline limit starting on the 13th Instalment and every anniversary thereafter
In the event the average utilization of the Dropline Limit Facility, calculated based on daily limit utilization of the Borrower, is less than 50% for the preceding 365 days, then the Lender shall charge the Borrower twice the Annual Maintenance Charges as stipulated in the Schedule

Annual Maintenance Charges (AMC) (for Hybrid Overdraft)

No upfront charges/Zero charges at the time of disbursement for the Hybrid Limit. 0.5% + applicable taxes, on the Hybrid Limit as on the 13th Instalment & every anniversary thereafter
In the event the average utilization of the Dropline Limit Facility, calculated based on daily limit utilization of the Borrower, is less than 50% for the preceding 365 days, then the Lender shall charge the Borrower twice the Annual Maintenance Charges as stipulated in the Schedule.

Non-Compliance charges (Term loan) (for Partially Collateralised Business Loan)

Up to 1% p.a. of principal outstanding loan amount _+ applicable taxes

Charges incurred by LTF for initiating action under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002: (Term loan) (for Partially Collateralised Business Loan)

Issue of Loan Recall Notice = Up to Rs. 500/ –
Issue of Demand Notice = Up to Rs. 1,000/ –
Issue of Possession Notice = Up to Rs. 2,000/ –
Applying District Magistrate Order = Up to Rs. 8,000/ -
Taking Physical possession. Up to Rs. 20,000/ –
Actual cost incurred will be debited for expenses pertaining to Publication of Possession Notice / Publication Demand Notice / Publication of Sale cum Auction Notice. All applicable taxes will be added.

Foreclosure Charges:

Repayment instrument Swap Charges (per swap):

Up to Rs.500/- + applicable taxes (applicable only for branch walk-ins)

Document retrieval / Duplicate NOC charges

Nil for digital copy.
Charge for paper copy is Up to Rs.1000/- + applicable taxes per statement/letter/certificate.

Legal fees and charges:

As per actuals or Up to Rs. 50,000/- whichever is lower + applicable taxes

Recovery charges:

As per actuals or Up to Rs. 15,000/- whichever is lower + applicable taxes

Field collection service charge:

Up to Rs.500/- per collection + applicable taxes

Auction Fees (Term loan) (for Partially Collateralised Business Loan)

Up to 1% of auction sale amount + applicable taxes