| Product | Applicable rate of interest (p.a.) | Methodology of applicability |
| Housing /Term/Vehicle Loans | 2% on arrears capital amount |
Penal interest rate of 2% p.a. shall be applicable if the loan capital is not repaid on the due date of the loan instalment. e.g. Loan instalment due date: 26th March 2026 Capital arrears amount: Rs 50,000/- Capital repaid date: 31st March 2026 Applicable penal interest rate -Rs 50,000 x (2/100) x (5X365) =Rs 13.70 Recovery; on daily basis, subject to availability of funds. |
| Short Term Revolving loans (STRL)/Import Finance (IF) | 2% on total capital amount |
Penal interest rate of 2% p.a. shall be applicable for the total capital loan outstanding amount if the loan fails to settle on the due date. e.g. Capital due date: 31st January 2026 Capital arrears amount: Rs 1,000,000/- Capital repaid date: 10th February 2026 Applicable penal interest rate -Rs Recovery; at settlement time. |
