Know fees for cash credit overdraft at Kotak Mahindra bank

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Type

Penalty Amount/Rate

Delay or Default in Payment or where amount drawn beyond the Maximum Overdraft Limit and/or the Drawing Power

All facilities except LCBD, Export Credit in INR/ Foreign Currency (FC), and Devolved Liabilities arising from Non Fund Based(NFB) facilities and all Other Foreign Currency Loans :-

Amounts standing unpaid on respective due dates shall attract penal charge at 8% per annum (to be charged for actual no. of days) on overdue amount plus applicable taxes

LC backed bill discounting (LCBD) facility: -

Amounts unpaid on due date shall attract penal charge at 2% p.a. (to be charged for actual no. of days) on overdue amount plus applicable taxes.

Devolved Liabilities arising from Non Fund Based(NFB) facilities (viz. Letter of Credit & Bank Guarantee):-

The devolved liabilities shall carry Rate of Interest commensurate with the credit risk premium of the borrower as per Bank’s pricing guidelines.

All such amounts standing unpaid shall also attract penal charge at 8% per annum (to be charged for actual no. of days) on devolved liabilities from the date of devolvement till its regularization, plus applicable taxes

Delay/ Non-Creation of Security in favor of the Bank by the Borrower/Security Provider

(* Refer Notes Below)

The Bank shall levy Penal charges at Rs. 5.50 per day per lac of exposure (or a part thereof) + applicable taxes for any delay beyond the original due date (“ODD”) as per sanction terms upto 180 days from the ODD.

Beyond 180 days delay, the Bank reserves the right to recall the facility (ies) or charge penal charges at Rs. 11 per day per lac of exposure (or a part thereof) + applicable taxes until the security is created to the satisfaction of the Bank.

(The said penal charges shall be calculated on sum of limits of revolving lines and outstanding under non-revolving lines of both fund and non-fund based facilities to which the security extends.)

Delay/ Non-submission of Stock / Property insurance policy

Upto Rs. 10 crs exposure - Rs. 5000/- per month + applicable taxes

Above Rs. 10 crs exposure - Rs. 10000/-per month + applicable taxes

Timelines for submission:

Cover note: 15 days from expiry of existing policy;

Renewed policy: 30 days from expiry of existing policy

for Takeover cases: Insurance policy to be submitted within 45 days from the date of first disbursement

Delay in submission of more than 60 days will result in reductions of limits at the absolute and sole discretion of the Bank.

Delay in submission of Documents under deferral

Rs. 2500/- per month + applicable taxes

The penalty would be applicable after 15 Days from the due date until receipt of the respective document to the satisfaction of the Bank.

Delay in Stock Audit

Rs. 5000/- per month + applicable taxes

Penalty will be applicable after 60 days from the due date until receipt of the stock audit report to the satisfaction of the Bank.

Delay in submission of Book Debt & Stock Statement

Rs. 5000/- per month + applicable taxes

Penalty will be applicable if the statement is not submitted on due date until the receipt of the statement.

If submission is not received 15 days beyond the submission due date, Bank may also drop the drawing power at its absolute and sole discretion.

Charges for recovery of Provision on account of inadequate hedging where Unhedged Foreign Currency Exposure (UFCE )declaration/certificate is submitted within the stipulated timelines

Self-Declaration – if not submitted within 2 months from the end of the applicable period- Rs. 125/- per quarter per lac + applicable taxes, on the Total Fund Based Outstanding exposure relevant for UFCE provision at the end of each quarter

Annual UFCE certificate from the Statutory Auditor if not submitted within 8 months from close of financial year- Rs. 500/- p.a. per lac + applicable taxes, on the Total Fund Based Outstanding exposure relevant for UFCE provision

Charges for recovery of Provision on account of inadequate hedging where UFCE declaration/certificate is submitted within the stipulated timelines

Likely loss/ Earnings before interest and depreciation (EBID) ratio¹	Charges for recovery of provision (to be charged on Total Fund Based Outstanding relevant for UFCE provision)
<= 15%	Nil
> 15%<=30%	Rs. 50 per quarter per lac + applicable taxes
>30%<=50%	Rs. 75 per quarter per lac + applicable taxes
>50%<=75%	Rs. 100 per quarter per lac + applicable taxes
>75%	Rs. 125 per quarter per lac + applicable taxes

Note: - The said charges should not exceed Rs. 500 p.a. per lac on Fund Based O/s exposure in a financial year.

Non-closure of account with other bank (unless specific permission is taken), wherever stipulated

Rs. 5000/- per month + applicable taxes

Commitment Charges for non-utilization of limits

If average utilization of facility limits for a quarter is below 60% of sanctioned limits, Commitment charges of Rs. 5.50 per day per lac of unutilized limits (or a part thereof) + applicable taxes.

Charges for Breach of Other Material Terms and Conditions

(i.e. breach of any Event of Default conditions (“EOD”) as mentioned in any loan/facility agreement or Sanction Letter or any other agreement or breach of any Specific Conditions mentioned in the Sanction Letter) and not covered specifically in this Schedule.

Rs. 5.50 per day per lac of exposure (or a part thereof) + applicable taxes (to be calculated from the day of breach until complied)

In addition to these charges/levies, Bank also reserves the absolute right to recall the limits and demand repayment of all facilities from the borrower.

Dishonor charges per Instance (Cheque / Standing Instructions / ECS / NACH) for loan repayment

INR 750/- per instance

Change/Release/modification/Replacement in security

INR 25,000/- plus applicable taxes per instance per borrower

Documentation charges

For New Limits/Enhancement/Modification (plus applicable taxes)

Digital Execution: INR 5,000/-

Physical Execution: INR 10,000/-

For Renewal (plus applicable taxes)

Digital Execution: INR 2500/- for every renewal

Physical Execution: INR 5000/- for every renewal

Extension of timeline for security creation

INR 10,000/- plus applicable taxes for each extension request (at the time of PDF extension in the system)

Renewal Extension Request

INR 5,000/- plus applicable taxes per instance

Stamp Duty and Incidental Charges

As per Actuals incurred

Swap Charges( Replacement of PDCs) / Change of SI Instructions / NACH

INR 1000/- plus applicable taxes per instance

Charges applicable in case customer requests for copies of records pertaining to transactions ( Statement Of Account / Amortization Schedule) per Transaction

INR 500/- plus applicable taxes

Solvency Certificate

Up to 0.10% per Lac with minimum INR 1000/- plus applicable taxes and maximum of INR 10,000/- plus applicable taxes per Solvency certificate.

It is agreed and understood by the Borrower that issuance of a solvency certificate shall be at the absolute and sole discretion of the Bank and the Bank may refuse issuance of such certificate in exercise of its discretionary right.

Title Verification (TSR)/ Clearance Charges

As per Actuals or INR 6,000/- per property whichever is higher (plus applicable taxes)

Mortgage / Registration and Incidental Charges

As per the applicable charges of respective locations

Mortgage charges

0.05% of Loan value not exceeding INR 25000/- per instrument (plus applicable taxes)

Stock audit charges

Borne by customer on actual basis

Collateral Management Agency charges

1% of utilization or as per actuals (plus applicable taxes) whichever is higher

Registrars of Companies (ROC) Search Report/Charges

INR 1250/- for each report (plus applicable taxes)

Valuation Charges Per Property

As per Actuals or INR 7,500/- per property, whichever is higher (plus applicable taxes)

Ad-hoc Set up charges & Rate of Interest (ROI)

Set-up charges – 0.25% plus applicable taxes subject to minimum of INR 5000 & maximum of INR 25000.

Rate of Interest - additional interest of 2.00% p.a. over and above the contracted ROI on Ad-hoc amount

Creation of Bank charge on collateral in various mandated databases, such as CERSAI, ROC etc.

Up to Rs. 5000/- per instance or on actuals (plus applicable taxes)

Subsidy Application & Processing Charges

Up to INR 5,000/- (plus applicable taxes) per instance

Up to INR 50,000/- (plus applicable taxes) per instance

Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) Fee

As per fee matrix defined by CGTMSE from time to time (plus applicable taxes)

CGTMSE Administrative charges

Upto 0.1% of the CGTMSE exposure (plus applicable taxes)

Charges for Certificates on Borrower’s Request

Up to INR 10,000/- (plus applicable taxes) per request

(Please take note that issuance of any such certificate shall be at the sole and absolute discretion of the Bank and the Bank will have right to reject if the requested certificate is not found acceptable for issuance by the Bank).

Modification in terms and conditions

INR 25000/- plus applicable taxes per request

Unit inspection / security verification charges

On actuals

No Objection Certificate(NOC) Issuance/Duplicate issuance of No Dues Certificate (NDC)

INR 5,000/- plus applicable taxes per NOC/Duplicate NDC

Foreclosure/Prepayment of the facilities

2% of Principal Outstanding for Non-revolving and 2% of Sanctioned limits for Revolving facilities (plus taxes as applicable)

For Micro & Small (MSE) Borrowers-

· Nil charges on fixed rate loans up to 50 lakh (Original Sanctioned limit)

· Nil charges on Floating loans

Notes:

· *Delay/ Non-Creation of Security in favor of the Bank by the Borrower/Security Provider means:

- The term non-creation of security shall mean failure of the Borrower/Security Provider to create security in such form and manner as per the agreed terms mentioned in Sanction letter /Facility letters or Facility /Loan Agreements or any other document/instrument to secure the loan/financial facility availed from the Bank and shall also include Non-submission of NOC or Permission to Mortgage from any person/entity/ competent authority as prescribed by the Bank as well as Non-submission of Pari passu letters from other lenders.

· In addition to these charges/levies, Bank also reserves the absolute right to withdraw the limits and demand repayment of the facilities from the borrower for any breach of any of the terms and conditions prescribed in the sanction letter or any loan/security document executed in favor of the Bank

· For the sake of clarity, it is reiterated that the above list is only indicative in nature and should not be in any manner construed as an exhaustive list at any point of time.

Cash Credit/Overdraft