Interest Rates and Service Charges

Interest Rate Card

1. Applicable Rate of Interest

Notes

1. An applicable sector premium shall be added based on the sector to which the borrower belongs, to determine the applicable rate of interest.
2. The rate of interest shall increase progressively in line with the internal credit rating assigned by the Company during the credit appraisal process.
3. In cases where the security is other than Government securities, an additional 0.35% shall be added to determine the applicable rate of interest.
4. If a borrower/project is downgraded to stage 2 category as per IND AS, risk charge of 0.25% will be charged from the date of down-grading of account till it is upgraded.
5. If a borrower/project is downgraded to stage 3 category (NPA) as per IND-AS, risk charge of 0.35% will be charged from the date of down-grading of account till it is upgraded.

2. Fees/Charges on Pre-Payment

• 1. No pre-payment charges shall be levied on loans with sanctioned amount up to Rs. 50 lakhs for floating rate loans granted for business purpose to Micro and Small Enterprises (MSEs), as defined in the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, with or without co-obligant(s). This applies irrespective of the source of funds used for pre-payment, whether in part or in full, and without any minimum lock-in period.
• 2. In cases other than those mentioned above, pre-payment charges shall be levied at 2.00% on the amount being prepaid. This provision shall not apply if the source of funds used for pre-payment, whether in part or in full, is from internal accruals*.
• 3. No pre-payment charges shall be levied where the pre-payment is effected at the instance of the Company.
• 4. The Company shall charge any applicable fees or charges prospectively. Charges or fees previously waived by the Company shall not be levied at the time of pre-payment of the loan.

Note: The expression "Internal Accruals" for this purpose means any source other than borrowing from a Bank/HFC/NBFC and/or a Financial Institution. SMFCL reserves the right to call for necessary documents as evidence of the source of funds.

3. Penal Charges

Note on Penal Charges

SMFCL shall follow the instruction/clarification issued by the Central Board of Indirect Taxes & Customs (CBIC) with regard to applicability of GST on penal charges.