Applicable Rate of Interest from 10.07.2018 based
On MCLR of 8.50% (for 1 Year)
|Sr. No.||Particulars||1-Year MCLR is 8.50 % p.a.
w.e.f. 10th July 2018.
|A- i||Crop loan:||The applicable rate of interest will be 0% over 1 Year MCLR+ BSS 0.30% Presently 8.80% p.a. (security documents will carry this rate only). However, branches should charge interest @7% p.a. upto a limit of Rs.3 lakh till the due date of the crop loan.|
|a.||upto Rs.3 lakh irrespective of other limits (whenever interest subvention is available)|
|b.||over Rs. 3 lakh up to 10 lakh||8.50% (1Yr. MCLR)+BSS (0.30%) +2.20% (CRP) i.e.Minimum 11.00%|
|A-ii||Other than Crop Loan:|
|a.||Aggregate limits upto Rs.3 lakh||8.50% (1Yr. MCLR)+BSS (0.30%) +1.80% (CRP) i.e.Minimum 10.60%|
|b.||Aggregate limits over Rs.3 lakh and upto & inclusive of Rs.10 lakh||8.50% (1Yr. MCLR)+BSS (0.30%) +2.20% (CRP) i.e.Minimum 11.00%|
|Credit Rating||SL->0.10cr but below 1 cr
or turnover 0.50 cr and above but
below 5 cr.
|SL->1cr but below 5 cr
or turnover 5 cr and above but
below 50 cr.
|> 5 cr upto 10 cr. or turnover 50 cr to <150 cr.||>10 cr to upto 30cr. or turnover 150 to 300 crore||> 30 cr or turnover >300 cr|
Above mentioned spread are over & above MCLR+ Business Strategy Spread (BSS). While mentioning the ROI, branches must mention about the linkage with applicable MCLR (i.e., MLCR + Business Strategy Spread (BSS)+ Credit Risk Premium).
For example, if the aggregate limits of an account carrying internal rating of SBS-1 falls within the range of over Rs.10 lakh to upto & inclusive of Rs.1 core and the applicable MCLR is say ‘1 Year MCLR’, then ROI will be 1 Year MCLR i.e. 8.50% + BSS of 0.30% + Credit Risk Premium of 1.60 %, presently 10.40 % p.a.
The final rate of interest applicable to all new advance accounts sanctioned and all credit limits renewed on or after 07.01.2017 shall be as under:-
Rate of Interest = 1 Year MCLR + Business Strategy Spread (BSS) + Credit Risk Premium *
* No other component to be added over & above these three components.
Exempted categories of rating under Priority Sector – Agriculture
There are certain agricultural activities, which are exempted from credit rating. The details/ list of such categories are furnished in Branch Cir. No.104/96 dated 16.11.2010 (Annexure-IV). In such cases, where the limit is Rs.10 lakh and above, the branches should charge interest as if advance has secured entry level credit rating such as SBS-5/ SME5/MS-5.
In case of loan up to Rs.50 lakh against pledge/hypothecation of agriculture produce (including warehouse receipts) to farmers for a period not exceeding 12 months, irrespective of whether the farmers were given crop loan for raising the produce or not, interest will be charged as under:
|Quantum of Finance||Rate of Interest|
Loans extended to PACS, FSS, and LAMPS
For loans extended to PACS, FSS, LAMPS interest will be charged at 1.70% + BSS (0.30%) over 1 Year MCLR presently 10.50% p.a.
With the introduction of MCLR, No Tenor Premium is further to be added over & above the applicable ROI (i.e. Applicable MCLR + BSS + Credit Risk Spread)