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Schedule of Charges
Interest Rates, Charges, Fees and Commission
Important update pursuant to Reserve Bank of India Circular No. RBI/2023-24/53 dated Aug 18, 2023 on ‘Fair Lending Practice – Penal Charges in Loan Accounts’ (RBI Circular)
The RBI vide its Circular No. RBI/2023-24/53 dated Aug 18, 2023 on ‘Fair Lending Practice – Penal Charges in Loan Accounts’, has advised banks that any penalty, if charged for non-compliance with material terms and conditions of the loan contract, will be treated as penal charges and not be levied in the form of penal interest. RBI has further advised that there will be no capitalisation of penal charges. However, the aforesaid will not affect the normal procedure for compounding of interest in the loan account.
Penal Charges represents charges over and above the normal interest rates/fees levied for default/breach by the Borrower in complying with the material terms of the loan contract. The intent of levying penal charges is essentially to instil a sense of financial discipline and discourage borrowers from defaulting on their obligations as specified in loan contract/ facility agreement.
The above guidelines would apply to all credit facilities i.e. fund based and non-fund based facilities save and except Credit Cards, External Commercial Borrowings, Trade Credits and Structured Obligations.
The above-mentioned guideliness are effective from Apr 01, 2024 and applicable for all the fresh loan facilities executed from Apr 01, 2024. In case of existing loan facilities, a switchover to the new penal charges regime will be ensured on the next review/renewal date or before Jun 30, 2024, whichever is earlier. These guidelines will operate in conjunction with other ICICI Bank policies related to pricing and customer disclosures.
In case of any queries or concerns, please reach out to your Relationship Manager and/ or contact Customer Care at 18001080.
Click here for the list of Penal Charges.
| Nature of Charges | Details |
|---|---|
Processing Fees |
Up to 2% (plus applicable taxes) of the facility amount |
Interest rate |
For secured facilities: Up to Repo Rate + 6.0 % (Non PSL)
The interest rate for each loan is determined based on the assessment of business, financials, loan amount and tenure |
Stamp Duty and other statutory charges |
As per applicable laws of the State |
Commission on Letters of Credit and Bank Guarantee |
Up to 2% per annum commission will be charged on a pro-rata basis, based on the tenure and amount of non-fund based facilities being availed |
Commitment charges |
Commitment charges to be charged as per the terms and conditions mentioned in the sanction letter |
Foreclosure charges |
Foreclosure charges to be charged as per the terms and conditions mentioned in the sanction letter Nil foreclosure charges for Micro and Small Enterprises. |
