Interest Rates advance, Interest rate loan, interest rate (2023)

Table of Contents
“BANK WILL CHARGE INTEREST ON ALL ADVANCES, UNLESS OTHERWISE SPECIFIED ON THE BASIS OF 365 DAYS PER YEAR”. Interest Rate On Advances Linked To MCLR/RLLR + BSP (Presently 0.25%) A. RETAIL LOANS HOUSING LOAN Home Loan (CRE Category) Home Loan (TL PNB Max Saver) 1.4 Home Loan (OD PNB Max Saver) Solar Power System (on Standalone Basis) 2.1 SCHEME FOR FINANCING PURCHASE OF CAR BY PUBLIC (New Car) 2.2 SCHEME FOR FINANCING PURCHASE OF CAR BY PUBLIC (Old Car) EDUCATION LOAN: PNB SARASWATI EDUCATION LOAN: PNB SARASWATI-FEMALE EDUCATION LOAN: PNB PRATIBHA EDUCATION LOAN: PNB UDAAN EDUCATION LOAN: PNB UDAAN- FEMALE EDUCATION LOAN: PNB KAUSHAL EDUCATION LOAN: PM CARES EDUCATION LOAN SCHEME EDUCATION LOAN: PNB HONHAAR EDUCATION LOAN: PNB PRAVASI SHIKSHA LOAN Education Loan Scheme - Concessional Education Loans to Persons with Disabilities (PwDs) - Memorandum of Agreement with National Handicapped Finance & Development Corporation (NHFDC) Revised rate of interest under the Schemes “PNB Gold Loan Schemes- Advance against Gold Jewellery/Gold Ornaments/Sovereign Gold Bond/Sona Krishi Rin w.e.f 01.08.2022 are as under:- PNB BAGHBAN- A SCHEME FOR HOUSE OWNING SENIOR CITIZENS OF INDIA UNDER ‘REVERSE MORTGAGE CONCEPT’ EARNEST MONEY DEPOSIT (EMD) SCHEME 7. PNB Sahyog Rin – Personal Loan Scheme for Public 8. PERSONAL LOAN SCHEME FOR PENSIONERS 9. PERSONAL LOAN SCHEME FOR COVID 10. PNB SAARTHI & PNB POWER RIDE– SCHEME FOR FINANCING TWO – WHEELERS TO PUBLIC/WOMEN 11. LOAN AGAINST MORTGAGE OF IMMOVABLE PROPERTY 11. B. Rate of interest on the basis of realizable value of immovable property. 11. B1 Realizable value of property above 200% and upto 250% of loan amount 11. B2 Realizable value of property above 250% and upto 300% of loan amount 11. B3 Realizable value of property above 300% of loan amount B. AGRICULTURE ADVANCES 1.RATE OF INTEREST FOR AGRICULTURE ADVANCES (EXCLUDING SCHEMATIC LENDING) 2.RATE OF INTEREST FOR SPECIFIC SCHEMES b)RATE OF INTEREST ON FOOD & AGRO ADVANCES LINKED TO MCLR c)RATE OF INTEREST ON FOOD & AGRO ADVANCES LINKED TO RLLR + BSP C. MSME ADVANCES (Except Schematic Lending not Specified Elsewhere)1.EXPOSURE UP TO Rs. 20 LAKH 2.EXPOSURE ABOVE Rs. 20 LAKH AND UP TO Rs. 5 CRORE 3.EXPOSURE ABOVE Rs. 5 CRORE D. OTHER ADVANCES (Not Specified Elsewhere)1.EXPOSURE UP TO Rs. 20 LAKH 2.EXPOSURE ABOVE Rs. 20 LAKH AND UP TO Rs. 5 CRORE 3.EXPOSURE ABOVE Rs. 5 CRORE E. NBFC F. SPECIFIED CATEGORIES1. DISCOUNTING OF BILLS: 1.2 Bills not backed by ILCs: 2.RATE OF INTEREST IN CASE OF RUPEE EXPORT CREDIT 2.2 RUPEE EXPORT CREDIT (MCLR BASED) 3. ADVANCE AGAINST DOMESTIC TERM DEPOSITS, NRE DEPOSITS, FCNR (B) DEPOSITS AND RESIDENT FOREIGN CURRENCY DEPOSITS 4.INTEREST RATES ON PAPER SECURITIES, RELIEF BONDS OF RBI & OTHER CATEGORIES 5.FUTURE RENTAL SCHEME G. CONCESSIONS1.COLLATERAL LINKED CONCESSIONS 2.SPECIFIC CONCESSION TO WOMEN ENTREPRENEURS 3.CONCESSIONS NOT SPECIFIED ELSEWHERE FAQs Videos

“BANK WILL CHARGE INTEREST ON ALL ADVANCES, UNLESS OTHERWISE SPECIFIED ON THE BASIS OF 365 DAYS PER YEAR”.

Interest Rate On Advances Linked To MCLR/RLLR + BSP (Presently 0.25%)

A. RETAIL LOANS

HOUSING LOAN

Loan Amount

CIC Score

Revised

Rate of Interest

(For Leads received through Digital Channel)

Revised

Rate of Interest

(For Leads received through Non-Digital Channel)

Salaried

Non-Salaried

Salaried

Non-Salaried

LTV Ratio (%) <=80

>= 50 Lakhs

PNB Pride*

RLLR+BSP-0.25%

Not Applicable

RLLR+BSP-0.20%

Not Applicable

750 and above

RLLR+BSP-0.25%

RLLR+BSP-0.15%

RLLR+BSP-0.20%

RLLR+BSP-0.10%

700-749

RLLR+BSP-0.05%

RLLR+BSP+0.05%

RLLR+BSP

RLLR+BSP+0.10%

650-699

RLLR+BSP+0.05%

RLLR+BSP+0.15%

RLLR+BSP+0.10%

RLLR+BSP+0.20%

>=550-649

RLLR+BSP+0.55%

RLLR+BSP+0.65%

RLLR+BSP+0.60%

RLLR+BSP+0.70%

<50 Lakhs

PNB Pride*

RLLR+BSP-0.20%

Not Applicable

RLLR+BSP-0.15%

Not Applicable

750 and above

RLLR+BSP-0.20%

RLLR+BSP-0.10%

RLLR+BSP-0.15%

RLLR+BSP-0.05%

700-749

RLLR+BSP

RLLR+BSP+0.10%

RLLR+BSP+0.05%

RLLR+BSP+0.15%

650-699

RLLR+BSP+0.10%

RLLR+BSP+0.20%

RLLR+BSP+0.15%

RLLR+BSP+0.25%

>=550-649

RLLR+BSP+0.60%

RLLR+BSP+0.70%

RLLR+BSP+0.65%

RLLR+BSP+0.75%

LTV Ratio more than 80%

=<30 Lakhs

PNB Pride*

RLLR+BSP+0.10%

Not Applicable

RLLR+BSP+0.15%

Not Applicable

750 and above

RLLR+BSP+0.10%

RLLR+BSP+0.20%

RLLR+BSP+0.15%

RLLR+BSP+0.25%

700-749

RLLR+BSP+0.30%

RLLR+BSP+0.40%

RLLR+BSP+0.35%

RLLR+BSP+0.45%

650-699

RLLR+BSP+0.40%

RLLR+BSP+0.50%

RLLR+BSP+0.45%

RLLR+BSP+0.55%

>=550-649

RLLR+BSP+0.90%

RLLR+BSP+1.00%

RLLR+BSP+0.95%

RLLR+BSP+1.05%

Home Loan (CRE Category)

Loan Amount

CIC Score

Revised

Rate of Interest

(For Leads received through

Digital Channel)

Revised

Rate of Interest

(For Leads received through

Non-Digital Channel)

Salaried

Non-Salaried

Salaried

Non-Salaried

LTV Ratio (%) <=80

>= 50 Lakhs

PNB Pride*

RLLR+BSP

+0.25%

Not Applicable

RLLR+BSP+0.30%

Not Applicable

750 and above

RLLR+BSP

+0.25%

RLLR+BSP+0.35%

RLLR+BSP+0.30%

RLLR+BSP

+0.40%

700-749

RLLR+BSP

+0.45%

RLLR+BSP

+0.55%

RLLR+BSP

+0.50%

RLLR+BSP

+0.60%

650-699

RLLR+BSP

+0.55%

RLLR+BSP

+0.65%

RLLR+BSP

+0.60%

RLLR+BSP

+0.70%

>=550-649

RLLR+BSP

+1.05%

RLLR+BSP

+1.15%

RLLR+BSP

+1.10%

RLLR+BSP

+1.20%

<50 Lakhs

PNB Pride*

RLLR+BSP

+0.30%

Not Applicable

RLLR+BSP

+0.35%

Not Applicable

750 and above

RLLR+BSP

+0.30%

RLLR+BSP

+0.40%

RLLR+BSP

+0.35%

RLLR+BSP

+0.45%

700-749

RLLR+BSP

+0.50

RLLR+BSP

+0.60%

RLLR+BSP

+0.55%

RLLR+BSP

+0.65%

650-699

RLLR+BSP

+0.60%

RLLR+BSP

+0.70%

RLLR+BSP

+0.65%

RLLR+BSP

+0.75%

>=550-649

RLLR+BSP

+1.10%

RLLR+BSP

+1.20%

RLLR+BSP

+1.15%

RLLR+BSP

+1.25%

LTV Ratio more than 80%

=<30 Lakhs

PNB Pride*

RLLR+BSP

+0.60%

Not Applicable

RLLR+BSP

+0.65%

Not Applicable

750 and above

RLLR+BSP

+0.60%

RLLR+BSP

+0.70%

RLLR+BSP

+0.65%

RLLR+BSP

+0.75%

700-749

RLLR+BSP

+0.80%

RLLR+BSP

+0.90%

RLLR+BSP

+0.85%

RLLR+BSP

+0.95%

650-699

RLLR+BSP

+0.90%

RLLR+BSP

+1.00%

RLLR+BSP

+0.95%

RLLR+BSP

+1.05%

>=550-649

RLLR+BSP

+1.40%

RLLR+BSP

+1.50%

RLLR+BSP

+1.45%

RLLR+BSP

+1.55%

Home Loan (TL PNB Max Saver)

Loan Amount

CIC Score

Revised

Rate of Interest

(For Leads received through Digital Channel)

Revised

Rate of Interest

(For Leads received through Non-Digital Channel)

Salaried

Non-Salaried

Salaried

Non-Salaried

LTV Ratio (%) <=80

>= 50 Lakhs

PNB Pride*

RLLR+BSP-0.10%

Not Applicable

RLLR+BSP-0.05%

Not Applicable

750 and above

RLLR+BSP-0.10%

RLLR+BSP

RLLR+BSP-0.05%

RLLR+BSP+0.05%

700-749

RLLR+BSP+0.10%

RLLR+BSP+0.20%

RLLR+BSP+0.15%

RLLR+BSP+0.25%

650-699

RLLR+BSP+0.20%

RLLR+BSP+0.30%

RLLR+BSP+0.25%

RLLR+BSP+0.35%

>=550-649

RLLR+BSP+0.70%

RLLR+BSP+0.80%

RLLR+BSP+0.75%

RLLR+BSP+0.85%

<50 Lakhs

PNB Pride*

RLLR+BSP-0.05%

Not Applicable

RLLR+BSP

Not Applicable

750 and above

RLLR+BSP-0.05%

RLLR+BSP+0.05%

RLLR+BSP

RLLR+BSP+0.10%

700-749

RLLR+BSP+0.15%

RLLR+BSP+0.25%

RLLR+BSP+0.20%

RLLR+BSP+0.30%

650-699

RLLR+BSP+0.25%

RLLR+BSP+0.35%

RLLR+BSP+0.30%

RLLR+BSP+0.40%

>=550-649

RLLR+BSP+0.75%

RLLR+BSP+0.85%

RLLR+BSP+0.80%

RLLR+BSP+0.90%

LTV Ratio more than 80%

=<30 Lakhs

PNB Pride*

RLLR+BSP+0.25%

Not Applicable

RLLR+BSP+0.30%

Not Applicable

750 and above

RLLR+BSP+0.25%

RLLR+BSP+0.35%

RLLR+BSP+0.30%

RLLR+BSP+0.40%

700-749

RLLR+BSP+0.45%

RLLR+BSP+0.55%

RLLR+BSP+0.50%

RLLR+BSP+0.60%

650-699

RLLR+BSP+0.55%

RLLR+BSP+0.65%

RLLR+BSP+0.60%

RLLR+BSP+0.70%

>=550-649

RLLR+BSP+1.05%

RLLR+BSP+1.15%

RLLR+BSP+1.10%

RLLR+BSP+1.20%

1.4 Home Loan (OD PNB Max Saver)

Loan Amount

CIC Score

Revised

Rate of Interest

(For Leads received through Digital Channel)

Revised

Rate of Interest

(For Leads received through Non-Digital Channel)

Salaried

Non-Salaried

Salaried

Non-Salaried

LTV Ratio (%) <=80

>= 50 Lakhs

PNB Pride*

RLLR+BSP-0.10%

Not Applicable

RLLR+BSP-0.05%

Not Applicable

750 and above

RLLR+BSP-0.10%

RLLR+BSP

RLLR+BSP-0.05%

RLLR+BSP+0.05%

700-749

RLLR+BSP+0.10%

RLLR+BSP+0.20%

RLLR+BSP+0.15%

RLLR+BSP+0.25%

650-699

RLLR+BSP+0.20%

RLLR+BSP+0.30%

RLLR+BSP+0.25%

RLLR+BSP+0.35%

>=550-649

RLLR+BSP+0.70%

RLLR+BSP+0.80%

RLLR+BSP+0.75%

RLLR+BSP+0.85%

<50 Lakhs

PNB Pride*

RLLR+BSP-0.05%

Not Applicable

RLLR+BSP

Not Applicable

750 and above

RLLR+BSP-0.05%

RLLR+BSP+0.05%

RLLR+BSP

RLLR+BSP+0.10%

700-749

RLLR+BSP+0.15%

RLLR+BSP+0.25%

RLLR+BSP+0.20%

RLLR+BSP+0.30%

650-699

RLLR+BSP+0.25%

RLLR+BSP+0.35%

RLLR+BSP+0.30%

RLLR+BSP+0.40%

>=550-649

RLLR+BSP+0.75%

RLLR+BSP+0.85%

RLLR+BSP+0.80%

RLLR+BSP+0.90%

LTV Ratio more than 80%

=<30 Lakhs

PNB Pride*

RLLR+BSP+0.25%

Not Applicable

RLLR+BSP+0.30%

Not Applicable

750 and above

RLLR+BSP+0.25%

RLLR+BSP+0.35%

RLLR+BSP+0.30%

RLLR+BSP+0.40%

700-749

RLLR+BSP+0.45%

RLLR+BSP+0.55%

RLLR+BSP+0.50%

RLLR+BSP+0.60%

650-699

RLLR+BSP+0.55%

RLLR+BSP+0.65%

RLLR+BSP+0.60%

RLLR+BSP+0.70%

>=550-649

RLLR+BSP+1.05%

RLLR+BSP+1.15%

RLLR+BSP+1.10%

RLLR+BSP+1.20%

Solar Power System (on Standalone Basis)

Rate of Interest Based on RLLR+BSP

RLLR+BSP+2.25%

Other Terms & Conditions

  • *PNB PRIDE covers the permanent employees of Central, State Govt. Para Military personnel and Pensioners of Central & State Govt & Employees of PSUs.
  • No further concession available to the women borrower on the applicable rate of interest.
  • Rate of Interest on TOP-UP LOAN- OVERDRFT/ TERM LOAN to housing loan borrowers for personal needs is as under:-

TOP-UP LOAN- OVERDRFT/ TERM LOAN

Type

Rate of Interest

ROI Irrespective of CIC Score

Term Loan

RLLR+BSP+ 0.35%

Overdraft

RLLR+BSP+ 1.35%

2.1 SCHEME FOR FINANCING PURCHASE OF CAR BY PUBLIC (New Car)

Scheme/ Borrower Type

Revised

Rate of Interest

(For Leads received through Digital Channel)

Revised

Rate of Interest

(For Leads received through Non-Digital Mode)

PNB Green Car (e-vehicle)

Car (Other than e-vehicle)

PNB Green Car (e-vehicle)

Car (Other than e-vehicle)

Women

Irrespective of CICs Score

RLLR+BSP-0.10%

RLLR+BSP

RLLR+BSP

RLLR+BSP+ 0.10%

PNB PRIDE*

Corporate#

Insta Vehicle Loan Scheme for existing home loan borrower(New Car Only)

Irrespective of CICs Score

(Floating rate)

Irrespective of CICs Score

(Fixed rate)

NA

Upto 3years: One year MCLR+1.25%

Above 3 years : One year MCLR+1.50%

NA

Upto 3years : One year MCLR+1.25%

Above 3 years : One year MCLR+1.50%

Others Individual

CIC Score 750 & above

RLLR+BSP-0.10%

RLLR+BSP

RLLR+BSP

RLLR+BSP+ 0.10%

CIC Score 700 and up to 749

RLLR+BSP+0.20%

RLLR+BSP+ 0.30%

RLLR+BSP+0.30%

RLLR+BSP+ 0.40%

CIC Score 650 to less than 700

RLLR+BSP+ 0.55%

RLLR+BSP+ 0.65%

RLLR+BSP+ 0.65%

RLLR+BSP+ 0.75%

Under Fixed Rate option for all%

NA

MCLR+0.95%

NA

MCLR+0.95%

PNB Pride Fixed rate option

NA

MCLR+0.95%

NA

MCLR+0.95%

2.2 SCHEME FOR FINANCING PURCHASE OF CAR BY PUBLIC (Old Car)

Scheme/ Borrower Type

Revised

Rate of Interest

(For Leads received through Digital Channel)

Revised

Rate of Interest

(For Leads received through Non-Digital Mode)

PNB Green Car (e-vehicle)

Car (Other than e-vehicle)

PNB Green Car (e-vehicle)

Car (Other than e-vehicle)

Women

Irrespective of CICs Score

NA

RLLR+BSP+1.00

NA

RLLR+BSP+ 1.10%

PNB PRIDE*

Corporate#

Insta Vehicle Loan Scheme for existing home loan borrower(New Car Only)

Irrespective of CICs Score

NA

NA

Others Individual

CIC Score 750 & above

NA

RLLR+BSP+1.00

RLLR+BSP+ 1.10%

CIC Score 700 and up to 749

NA

RLLR+BSP+ 1.30%

NA

RLLR+BSP+ 1.40%

CIC Score 650 to less than 700

NA

RLLR+BSP+ 1.65%

NA

RLLR+BSP+ 1.75%

Under Fixed Rate option for all%

NA

MCLR+1.95%

NA

MCLR+1.95%

PNB Pride Fixed rate option%

NA

MCLR+1.95%

NA

MCLR+1.95%

*PNB PRIDE covers the Central/ State Government Employees/ Defense personnel/ Para military Forces/ Pensioners of Central & State Government & Employees of PSUs.

# Corporates: Business concerns Car Loan financed to business concerns for personal use of their executives i.e. other than for use in business.

% Fixed rate option are permitted under MCLR option only.

EDUCATION LOAN: PNB SARASWATI

Parameter

Rate of Interest Based on RLLR

Loan upto Rs.7.50 lakhs

(covered under CGFSEL Scheme)

RLLR+BSP+ 2.00%

Loan upto Rs.7.50 lakhs, sanctioned before 16.09.2015

(not covered under CGFSEL Scheme)

RLLR+BSP+2.75%

Loan above Rs.7.50 lakhs

RLLR+BSP+2.75%

Loans irrespective of amount (where 100% tangible collateral security in the shape of IP, enforceable under SARFAESI Act, and/or liquid security is available)

RLLR+BSP+2.00%

EDUCATION LOAN: PNB SARASWATI-FEMALE

Parameter

Rate of Interest Based on RLLR

Loan upto Rs.7.50 lakhs

(covered under CGFSEL Scheme) to female student.

RLLR+BSP + 1.50%

Loan upto Rs.7.50 lakhs

sanctioned before 16.09.2015 (Not covered under CGFSEL Scheme & without collateral security) to female student.

RLLR+BSP + 2.25%

Loan above Rs.7.50 lakhs to female student.

RLLR+BSP+ 2.25%

Loans irrespective of amount

(where 100% tangible collateral security in the shape of IP, enforceable under SARFAESI Act, and/or liquid security is available) to female student.

RLLR+BSP+1.50%

EDUCATION LOAN: PNB PRATIBHA

Parameter

Rate of Interest Based on RLLR

Loan up to Rs.7.50 lakhs

Students getting admissions in institutions other than IITs, IIMs & XLRI Jamshedpur. (Loan sanctioned before 16.09.2015 not covered under CGFSEL Scheme & without collateral security).

RLLR+BSP + 1.25%

Loan up to Rs.7.50 lakhs

Students getting admissions in IITs, IIMs & XLRI Jamshedpur. (Loan sanctioned before 16.09.2015 not covered under CGFSEL Scheme & without collateral security).

RLLR+BSP + 1.15%

Loan up to Rs.7.50 lakhs

Student getting admission other than IIMs, IITs, NITs, ISB Hyderabad, ISB Mohali, MDI Gurgaon & XLRI Jamshedpur.

RLLR+BSP+ 0.75%

Loan above Rs.7.50 lakhs

Student getting admission in IIMs & IITs

RLLR + BSP - 0.70%

Loan above Rs.7.50 lakhs

Student getting admission in NITs, ISB Hyderabad, ISB Mohali, MDI Gurgaon & XLRI Jamshedpur.

RLLR + BSP

Loan above Rs.7.50 lakhs

Student getting admission other than IIMs, IITs, NITs, ISB Hyderabad, ISB Mohali, MDI Gurgaon & XLRI Jamshedpur.

RLLR + BSP + 0.25%

EDUCATION LOAN: PNB UDAAN

Parameter

Rate of Interest Based on RLLR

Loan upto Rs.7.50 lakhs

(covered under CGFSEL Scheme)

RLLR+BSP+2.00%

Loan upto Rs.7.50 lakhs, sanctioned before 16.09.2015

(not covered under CGFSEL Scheme)

RLLR+BSP+2.75%

Loan above Rs.7.50 lakhs

RLLR+BSP+2.75%

Loans irrespective of amount (where 100% tangible collateral security in the shape of IP, enforceable under SARFAESI Act, and/or liquid security is available)

RLLR+BSP + 2.00%

EDUCATION LOAN: PNB UDAAN- FEMALE

Parameter

Rate of Interest Based on RLLR

Loan upto Rs.7.50 lakhs

(covered under CGFSEL Scheme) to female student.

RLLR+BSP + 1.50%

Loan upto Rs.7.50 lakhs

sanctioned before 16.09.2015 (Not covered under CGFSEL Scheme & without collateral security) to female student.

RLLR+BSP + 2.25%

Loan above Rs.7.50 lakhs to female student.

RLLR+BSP+ 2.25%

Loans irrespective of amount (where 100% tangible collateral security in the shape of IP, enforceable under SARFAESI Act, and/or liquid security is available) to female student.

RLLR+BSP+1.50%

EDUCATION LOAN: PNB KAUSHAL

Parameter

Rate of Interest Based on RLLR

Loan up to Rs. 1.50 lakh

(Covered under CGFSSD)

RLLR+BSP + 1.50%

Loan up to Rs. 1.50 lakh (Covered under CGFSSD) to female student

RLLR+BSP + 1.00%


EDUCATION LOAN: PM CARES EDUCATION LOAN SCHEME

Parameter

Rate Of Interest Based On RLLR

Loan upto Rs.7.50 Lakh (covered under CGFSEL Scheme)

RLLR + BSP + 0.25%

Loans irrespective of amount (where 100% tangible collateral security in the shape of IP, enforceable under SARFAESI Act, and/or liquid security is available)

RLLR + BSP + 0.25%

Loan above Rs.7.50 Lakh (Where ZM has waived the 100% security criteria as per vested loaning power)

RLLR + BSP + 0.75%

EDUCATION LOAN: PNB HONHAAR

Rate of Interest Based on RLLR+BSP

RLLR+BSP+2.00%

EDUCATION LOAN: PNB PRAVASI SHIKSHA LOAN

Rate of Interest Based on RLLR+BSP

RLLR+BSP+2.15%

Education Loan Scheme - Concessional Education Loans to Persons with Disabilities (PwDs) - Memorandum of Agreement with National Handicapped Finance & Development Corporation (NHFDC)

Loan amount (Rs. in lakhs) Applicable Rate of Interest to PwDs (%)

Rate Of Interest

Less than or equal to 0.50

5%

Above 0.50-5.00

6%

Above 5.00 – 15.00

7%

Above 15.00-30.00

8%

Above 30.00-50.00

9%

  • INTEREST TABLE CODES FOR WOMEN BENEFICIARIES UNDER EDUCATION LOAN SCHEMES I) PNB SARASWATI II) PNB UDAAN & III) PNB KAUSHAL.

Revised rate of interest under the Schemes “PNB Gold Loan Schemes- Advance against Gold Jewellery/Gold Ornaments/Sovereign Gold Bond/Sona Krishi Rin w.e.f 01.08.2022 are as under:-

Sr

Name of Scheme

Revised Rate of Interest

1

Advance against Gold Jewellery/Gold Ornaments

(Demand Loan)

RLLR+BSP

2

Advance against Sovereign Gold Bonds (Demand Loan)

3

Advance against Sovereign Gold Bonds

(Overdraft)

RLLR+BSP

4

Advance against Gold Jewellery/Ornaments

(Overdraft)

5

Demand Loan Agriculture

One Year MCLR

PNB BAGHBAN- A SCHEME FOR HOUSE OWNING SENIOR CITIZENS OF INDIA UNDER ‘REVERSE MORTGAGE CONCEPT’

Rate of Interest Based on RLLR

RLLR+BSP+2.75%

EARNEST MONEY DEPOSIT (EMD) SCHEME

Rate of Interest Based on RLLR

RLLR+BSP+0.25%

7. PNB Sahyog Rin – Personal Loan Scheme for Public

Sr. No.

Type

CIC Score

Rate of Interest

A

Loan to Defence/ Para Military Personals drawing salaries through our Bank including customers covered under Rakshak Plus scheme

NA

RLLR+BSP+2.15%

B

a. Loan to Govt. Employees drawing salaries through our Bank

b. Loan to Central Government gazetted officer (Section Officer or equivalent and above) not having salary account with us.

CIC Score >= 800

RLLR+BSP+2.50%

CIC >= 750 less than 800

Or

With Nil credit history (i,e -1 or 0)

RLLR+BSP+3.50%

CIC 650 to 749

RLLR+BSP+4.50%

CIC Score less than 650

RLLR+BSP+5.00%

C

a) Loan to Corporate/other Employees drawing salaries through our Bank.

b) Loan to Govt. Employees not drawing salary with our bank

CIC Score >= 800

RLLR+BSP+3.50%

CIC >= 750 less than 800

Or

With Nil credit history (i,e -1 or 0)

RLLR+BSP+4.50%

CIC 650 to 749

RLLR+BSP+6.50%

CIC Score less than 650

RLLR+BSP+7.00%

D

Loan to employees under check off facility

CIC Score >= 800

RLLR+BSP+5.00%

CIC >= 750 less than 800

Or

With Nil credit history (i,e -1 or 0)

RLLR+BSP+5.50%

CIC 650 to 749

RLLR+BSP+7.20%

CIC Score less than 650

RLLR+BSP+7.70%

Sr. No.

Type

CIC Score

Rate of Interest

A

PNB Doctor’s Delight – Personal Loan Scheme for Doctors

NA

RLLR+BSP+2.15%

B

PNB Doctor’s Delight – Personal Loan Scheme for Doctors

Concession of 1% where prospective borrower (Doctor) maintaining his/her salary account with us or maintain his/her Receipt collection account with us or where Tangible Collateral Security of the value of 100% of loan amount.

NA

RLLR+BSP+1.15%

C

Personal Loan Scheme For Self-Employed

= 800

RLLR+BSP+3.50%

=750* less than 800 Or With Nil credit history (i.e - 1 or 0) RLLR+BSP+4.50%

8. PERSONAL LOAN SCHEME FOR PENSIONERS

Loan Type

Rate of Interest Based on RLLR

Demand Loan/ Term Loan/ Overdraft

RLLR+BSP+ 2.50%

9. PERSONAL LOAN SCHEME FOR COVID

Loan Type

Rate of Interest Based on RLLR

Demand Loan/ Term Loan

RLLR+BSP+ 1.70%

10. PNB SAARTHI & PNB POWER RIDE– SCHEME FOR FINANCING TWO – WHEELERS TO PUBLIC/WOMEN

Name of the Scheme

Rate of Interest Based on RLLR

Salaried Person

RLLR+BSP + 2.75%

Others including business concern

RLLR+BSP + 3.25%

PNB POWER RIDE

RLLR+BSP + 1.90%

11. LOAN AGAINST MORTGAGE OF IMMOVABLE PROPERTY

11 A.

Based on CIC Score of the Borrower

Rate of Interest Based on RLLR

TL

OD

CIC Score 750 & above

RLLR+BSP+1.90%

RLLR+BSP+2.40%

CIC Score 700 and up to 749

RLLR+BSP+2.40%

RLLR+BSP+2.90%

CIC Score less than 700

RLLR+BSP+3.00%

RLLR+BSP+3.50%

11. B. Rate of interest on the basis of realizable value of immovable property.

11. B1 Realizable value of property above 200% and upto 250% of loan amount

Based on CIC Score of the Borrower

Rate of Interest Based on RLLR

TL

OD

CIC Score 750 & above

RLLR+BSP+1.65%

RLLR+BSP+2.15%

CIC Score 700 and up to 749

RLLR+BSP+2.15%

RLLR+BSP+2.65%

CIC Score less than 700

RLLR+BSP+2.75%

RLLR+BSP+3.25%

11. B2 Realizable value of property above 250% and upto 300% of loan amount

Based on CIC Score of the Borrower

Rate of Interest Based on RLLR

TL

OD

CIC Score 750 & above

RLLR+BSP+1.40%

RLLR+BSP+1.90%

CIC Score 700 and up to 749

RLLR+BSP+1.90%

RLLR+BSP+2.40%

CIC Score less than 700

RLLR+BSP+2.50%

RLLR+BSP+3.00%

11. B3 Realizable value of property above 300% of loan amount

Based on CIC Score of the Borrower

Rate of Interest Based on RLLR

TL

OD

CIC Score 750 & above

RLLR+BSP+1.15%

RLLR+BSP+1.65%

CIC Score 700 and up to 749

RLLR+BSP+1.65%

RLLR+BSP+2.15%

CIC Score less than 700

RLLR+BSP+2.25%

RLLR+BSP+2.75%


B. AGRICULTURE ADVANCES

1.RATE OF INTEREST FOR AGRICULTURE ADVANCES (EXCLUDING SCHEMATIC LENDING)

Exposure

Rates of Interest

Regular KCC/ Crop Loans –O/S upto Rs. 3.00 Lakh

7.00%

Up to Rs. 20.00 Lac (including irregular KCC/ Crop Loans)

MCLR(1 Yr) + 1.50%

Above Rs. 20 Lakh and upto Rs. 50 lakh

MCLR(1 Yr) + 3.00%

Above Rs. 50 lakh

As per IRMD MasterTable

(Refer Section C or D as applicable)


2.RATE OF INTEREST FOR SPECIFIC SCHEMES

a)RATE OF INTEREST FOR NRLM / SRLM SCHEME

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Particulars

Rates of Interest

NRLM Loans to Women Borrowers in 250 Identified Districts

NRLM Loans to Non-Women Borrowers in 250 Identified Districts & in other than 250 Identified Districts

SRLM Loans

Outstanding of Rs. 3.00 Lakh

7.00%

Sanctioned limit up to Rs. 20.00 lakh

a. Loans repayable up to 1 year

MCLR (1 Yr)+ 2.10%

b. Loans repayable in >1 year and up to 3 years

MCLR (1 Yr)+ 2.15%

c. Loans repayable in >3 years

MCLR (1 Yr)+ 2.70%

Sanctioned limit >Rs. 20.00 Lakh

As per IRMD MasterTable (Refer Section C or D as applicable)


b)RATE OF INTEREST ON FOOD & AGRO ADVANCES LINKED TO MCLR

ADVANCES UP TO Rs. 20.00 LAKH: MCLR (1 Yr) + 1.25%

ADVANCES ABOVE Rs. 20.00 LAKH: For advances under Food & Agro Processing Segment with sanctioned limit above Rs. 20.00 lakh and up to Rs. 100.00 Crore (from Banking System) rates of interest will be applicable on the basis of internal & external rating, as under:

(Spread over MCLR)

Internal Risk Rating

EXTERNAL RATING

AAA

AA

A

BBB

BB & BELOW

UNRATED

A1

0.20

0.25

0.30

0.40

2.05

0.55

A2

0.20

0.30

0.35

0.45

2.10

0.60

A3

0.55

0.65

0.75

0.85

2.45

1.00

A4

1.10

1.15

1.20

1.30

3.00

1.45

B1

1.60

1.65

1.70

1.80

3.50

1.95

B2

2.50

2.60

2.95

3.55

4.40

3.80

B3

4.40

4.45

4.85

5.00

5.00

5.00

C1

5.00

C2

C3


c)RATE OF INTEREST ON FOOD & AGRO ADVANCES LINKED TO RLLR + BSP

All new floating rates on loans to Food & Agro processing units (Micro, Small and Medium Enterprises MSME units):

ADVANCES UP TO Rs. 20.00 LAKH: RLLR + BSP+ (SPREAD) 1.20%.

ADVANCES ABOVE Rs. 20.00 LAKH: For advances under Food & Agro Processing Segment with sanctioned limit above Rs. 20.00 lakh and up to Rs. 100.00 Crore (from Banking System) rates of interest will be applicable on the basis of internal and external rating, as under:

(Spread over RLLR + BSP)

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Internal Risk Rating

EXTERNAL RATING

AAA

AA

A

BBB

BB & BELOW

UNRATED

A1

0.35

0.40

0.45

0.55

2.20

0.70

A2

0.40

0.45

0.50

0.60

2.25

0.75

A3

0.70

0.80

0.90

1.00

2.60

1.15

A4

1.25

1.30

1.35

1.45

3.15

1.60

B1

1.75

1.80

1.85

1.95

3.65

2.10

B2

2.65

2.75

3.10

3.70

4.55

3.95

B3

4.55

4.60

5.00

5.15

5.15

5.15

C1

5.15

C2

C3

Note:

Rate of Food & Agro processing Industry is in line with MSME and whenever there is change in rate of interest in MSME, rate of interest applicable on Food & Agro Processing will change accordingly.


C. MSME ADVANCES (Except Schematic Lending not Specified Elsewhere)
1.EXPOSURE UP TO Rs. 20 LAKH

Particulars

Spread over RLLR + BSP

Advances up to Rs. 50000/-

0.15%

Advances >Rs. 50000/- to Rs. 20 Lakh

1.40%


2.EXPOSURE ABOVE Rs. 20 LAKH AND UP TO Rs. 5 CRORE

Internal Risk Rating *

Spread over RLLR + BSP

A1

0.70%

A2

0.75%

A3

1.15%

A4

1.60%

B1

2.10%

B2

3.95%

B3& Below

5.15%


3.EXPOSURE ABOVE Rs. 5 CRORE

(Spread over RLLR + BSP)

Internal Risk Rating

External Rating

AAA

AA

A

BBB

Unrated

BB & Below

Unrated

20%

30%

50%

100%

100%

150%

150%

A1

0.35%

0.40%

0.45%

0.55%

0.70%

2.20%

2.20%

A2

0.40%

0.45%

0.50%

0.60%

0.75%

2.25%

2.25%

A3

0.70%

0.80%

0.90%

1.00%

1.15%

2.60%

2.60%

A4

1.25%

1.30%

1.35%

1.45%

1.60%

3.15%

3.15%

B1

1.75%

1.80%

1.85%

1.95%

2.10%

3.65%

3.65%

B2

2.65%

2.75%

3.10%

3.70%

3.95%

4.55%

4.55%

B3

4.55%

4.60%

5.00%

5.15%

5.15%

5.15%

5.15%

C1 & Below

5.15%


D. OTHER ADVANCES (Not Specified Elsewhere)
1.EXPOSURE UP TO Rs. 20 LAKH

Particulars

Spread over MCLR

Advances up to Rs. 50000/-

0.00%

Advances >Rs. 50000/- to Rs. 20 Lakh

1.50%


2.EXPOSURE ABOVE Rs. 20 LAKH AND UP TO Rs. 5 CRORE

Internal Risk Rating

Spread over MCLR

A1

1.95%

A2

2.00%

A3

2.40%

A4

2.90%

B1

3.75%

B2

4.75%

B3

5.50%

C1& below

6.00%


3.EXPOSURE ABOVE Rs. 5 CRORE

(Spread over MCLR)

Internal Risk Rating

External Rating

AAA

AA

A

BBB

Unrated

BB& Below

Unrated

20%

30%

50%

100%

100%

150%

150%

A1

0.20%

0.25%

0.65%

1.70%

1.95%

2.55%

2.55%

A2

0.25%

0.30%

0.70%

1.75%

2.00%

2.60%

2.60%

A3

0.55%

0.65%

1.05%

2.15%

2.40%

3.00%

3.00%

A4

1.35%

1.50%

1.85%

2.65%

2.90%

3.50%

3.50%

B1

2.20%

2.35%

2.70%

3.50%

3.75%

4.35%

4.35%

B2

3.15%

3.35%

3.65%

4.50%

4.75%

5.30%

5.30%

B3

5.40%

5.55%

5.90%

6.00%

6.00%

6.00%

6.00%

C1 & Below

6.00%


E. NBFC

SPREAD OVER MCLR FOR NBFC (AFC)

Internal Risk Rating

External Rating

AAA

AA

A

BBB

Unrated

BB & Below

Unrated

20%

30%

50%

100%

100%

150%

150%

A1

0.40%

0.55%

1.15%

2.70%

2.95%

4.05%

4.05%

A2

0.45%

0.60%

1.20%

2.75%

3.00%

4.10%

4.10%

A3

0.75%

0.95%

1.55%

3.15%

3.40%

4.50%

4.50%

A4

1.55%

1.80%

2.35%

3.65%

3.90%

5.00%

5.00%

B1

2.40%

2.65%

3.20%

4.50%

4.75%

5.85%

5.85%

B2

3.35%

3.65%

4.15%

5.50%

5.75%

6.50%

6.50%

B3

5.60%

5.85%

6.40%

6.50%

6.50%

6.50%

6.50%

C1 & Below

6.50%

SPREAD OVER MCLR FORNBFC (OTHER THAN AFC)

1.00% over the ROI as mentioned above


F. SPECIFIED CATEGORIES
1. DISCOUNTING OF BILLS:

1.1 INTEREST RATE ON BILL DISCOUNTED/ PURCHASED UNDER LETTER OF CREDIT (DA/DP Basis)

Tenor of the Bills backed by Confirmed ILCs of Approved Banks

Rate of Interest*

Upto 90 days

Repo rate + 1.50 %

91 to 180 days

Repo +1.75%

181 days – upto less than 1 year

Repo +2.00%

Note:The above rate shall apply when the bills are realized as per the original tenor of the bill. In case of bills not realized as per the original tenor of the bill, interest is to be recovered at RLLR + BSP (1 year) + 6.00% for the particular bill from the due date, for the overdue period.

1.2 Bills not backed by ILCs:

Interest Rates as applicable to working capital limits.

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2.RATE OF INTEREST IN CASE OF RUPEE EXPORT CREDIT

2.1 RUPEE EXPORT CREDIT (RLLR + BSP BASED)

A. PRE-SHIPMENT CREDIT

Particulars

Internal Risk Rating

Effective Rate of Interest

(i) Up to 270 days

A1 to A4

RLLR + BSP+0.45

B1 , B2

RLLR + BSP+0.65

B3 and below

RLLR + BSP+0.85

(ii) Above 270 days and up to 360 days

A1 to A4

RLLR + BSP+0.55

B1,B2

RLLR + BSP+0.75

B3 and below

RLLR + BSP+0.95

B. POST SHIPMENT

Particulars

Internal Risk Rating

Effective Rate of Interest

(i) On demand bills for transit period (as specified by FEDAI)

A1 to A4

RLLR + BSP+0.40

B1 , B2

RLLR + BSP+0.60

B3 and below

RLLR + BSP+0.80

(ii) Usance Bills (For total period comprising usance period of export bills, transit period as specified by FEDAI and grace period, wherever applicable). Up to 270 days.

A1 to A4

RLLR + BSP+0.50

B1 , B2

RLLR + BSP+0.70

B3 and below

RLLR + BSP+0.90


2.2 RUPEE EXPORT CREDIT (MCLR BASED)

A. PRE-SHIPMENT CREDIT

Particulars

Internal Risk Rating

Effective Rate of Interest

(i) Up to 270 days

A1 to A4

MCLR+0.40

B1 , B2

MCLR+0.65

B3 and below

MCLR+0.80

(ii) Above 270 days and upto 360 days

A1 to A4

MCLR+0.50

B1,B2

MCLR+0.75

B3 and below

MCLR+0.90

B. POST SHIPMENT

Particulars

Internal Risk Rating

Effective Rate of Interest

(iii) On demand bills for transit period (as specified by FEDAI)

A1 to A4

MCLR+0.25

B1 , B2

MCLR+0.40

B3 and below

MCLR+0.55

(iv) Usance Bills (For total period comprising usance period of export bills, transit period as specified by FEDAI and grace period, wherever applicable). Up to 270 days.

A1 to A4

MCLR+0.45

B1 , B2

MCLR+0.60

B3 and below

MCLR+0.75

NOTE:

1. Exporters eligible under Interest Equalisation Scheme - MSME & Other category shall enjoy interest equalisation @ 5% and @ 3% respectively in the above rates till the validity of the scheme.

2. Exporters eligible under the Gold Card Scheme shall enjoy concession @ 0.25% in the above prescribed rates.

2.3 OVERDUE BILLS MORE 180 DAYS AND ABOVE FROM THE DATE OF ADVANCE) (INTEREST TO BE CHARGED AFTER DUE DATE)

RLLR + BSP+ 4.00 / 1 Year MCLR + 4.00

2.4 DEFERRED CREDIT/ EXPORT CREDIT NOT OTHERWISE SPECIFIED (ECNOS)

RLLR + BSP + 6.00 / 1 Year MCLR + 6.00


3. ADVANCE AGAINST DOMESTIC TERM DEPOSITS, NRE DEPOSITS, FCNR (B) DEPOSITS AND RESIDENT FOREIGN CURRENCY DEPOSITS

3.1 ADVANCE AGAINST DOMESTIC/ NRE DEPOSITS

Self

1.00%*

Third Party Deposit

2.00%* subject to Min. RLLR + BSP / MCLR

*Over the applicable rates of interest on deposits

Note:In case there is more than one deposit in the name of the depositor(s) with varied rate of interest, 1% or 2% higher on the weighted average of rate of interest paid on deposits should be taken for calculating interest rate on loan.

3.2 RUPEE LOAN AGAINST FCNR DEPOSITS/ RESIDENT FOREIGN CURRENCY DEPOSIT (RFC) (IN INDIA)

Self

RLLR + BSP / MCLR

Third party Deposit

RLLR + BSP / MCLR + 1.00%

3.3 FOREIGN CURRENCY LOAN AGAINST FCNR/ NRE DEPOSITS (IN INDIA)

Rate of interest is provided by the Treasury Division on case to case basis.


4.INTEREST RATES ON PAPER SECURITIES, RELIEF BONDS OF RBI & OTHER CATEGORIES

4.1 ADVANCE against LIFE INSURANCE POLICIES, NSCs, KVP, other postal securities, Govt. & other paper securities

LIP including Postal Life Insurance

RLLR + BSP / MCLR +3.50%

Postal Securities (NSC/KVP/IVP)

Bonds/ RBI Relief Bonds, Units of Mutual Fund etc.

Postal Term Deposits

4.2 OTHER

Clean Loan*/Any other category not specified elsewhere

RLLR + BSP / MCLR +6%

Adhoc/Over Limit/ Temporary Facilities

2% over applicable ROI

DRI

4.00%

*Including Advances / Withdrawals against Uncleared Effects


5.FUTURE RENTAL SCHEME

SN

Particular

Spread over Applicable Benchmark ie., RLLR + BSP / MCLR

1.

Landlord of own bank Premises

3.00%

2.

Other Category

2.1

Individual*

As per IRMD MasterTable

(Refer Section C or D as applicable)

2.2

Non-Individual

*In case of individual, rate of interest as applicable to unrated borrowers with risk weight 100% shall be applied.


G. CONCESSIONS
1.COLLATERAL LINKED CONCESSIONS

Security Coverage

(% of total exposure)

Concession in Applicable Card Rate as per Internal Risk Rating *

1 to 6

7 & Below

Up to 50% of the loan amount

NIL

NIL

Above 50% and up to 75%

0.25%

NIL

Above 75% and up to 100%

0.50%

NIL

Above 100% and upto 150%

0.75%

NIL

Above 150%

1.00%

NIL

Note: As per RBI guidelines no collateral should be insisted upon for MSE loan up to Rs. 10 lakh. Accordingly, no concessional rate is applicable for Loans up to Rs. 10 lakh. However, for loan accounts amounting Rs. 10 Lakh and above, the additional discount /reductions in rate of interest based on % of collateral security offered by the borrower.

This concession shall not be allowed on collateral securities in shape of Agriculture Land, Educational Institutions, Hospitals, Nursing homes, Guarantee Cover, Plant & Machinery.

In any case, the interest rate should not be below applicable benchmark, after exercising the discretionary powers and concessions.


2.SPECIFIC CONCESSION TO WOMEN ENTREPRENEURS

0.50% concession shall be available to women entrepreneurs enterprises* classified under Priority Sector and 0.25% under non priority sector under women Empowerment campaign. However, minimum lending rate after giving all rebates shall not be below Applicable Benchmark.

An enterprise shall be classified as a Women Entrepreneurs’ Enterprise where:

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One or more women entrepreneurs have not less than 51% financial holding.

Specific for Para No. 1 and 2:

In case of partnership concerns, one or more women partners have not less than 51% profit/loss sharing ratio as per the Registered Partnership Deed

Collateral linked and Specific Concessions to Women Entrepreneurs mentioned at Para No. 1 and 2 aboveshall not be applicable in following cases:
In case of advance is sanctioned under any schematic lending where specific concession in ROI is already inbuilt, subject concession will not be applied unless specifically mentioned in the scheme.
In case any concession already given by respective / higher sanctioning authority.

Existing Concession already permitted to borrower mentioned at Para No. 1 and 2 shall continue till renewal/review of credit facilities. The proposed guidelines on concession shall be applicable at the time of renewal/ review of credit facilities.


3.CONCESSIONS NOT SPECIFIED ELSEWHERE

As per discretionary power vested with various sanctioning authority.

FAQs

What is advance interest rate? ›

An advance rate is the percentage amount of the value of the collateral that a lender is willing to extend as a loan. The risk to a lender is minimized in a default by using an advance rate, particularly when accepting collateral that fluctuates in value.

What is interest on loans and advances? ›

4. Interests in Loans and Advances: Loans from financial institutions attract an interest component which is added on to the principal at the time of repayment. The interest component is proportionately spread across the repayment tenure and is calculated based on the principal amount borrowed.

What are the types interest rates on loans? ›

Interest Rate Types
  • Simple Interest (also known as Nominal Interest) Simple interest is interest based on the original loan or saving amount. ...
  • Compound Interest. ...
  • Borrowing Money. ...
  • Fixed Rate Interest. ...
  • Variable Rate Interest. ...
  • Interest Measures. ...
  • Annual Percentage Rate (APR) ...
  • Annual Equivalent Rate (AER)
27 Apr 2022

What is the official rate of interest HMRC? ›

% to 2%

Is loan interest paid in advance? ›

Unlike rent for an apartment, which is paid in advance, mortgage interest is usually paid in arrears. That means it is paid after the amount accrues. A mortgage payment on April 1, for example, pays the interest for March. When interest is paid before it accrues, that payment is an example of prepaid interest.

What loan advance means? ›

1.3. Loan Advances means the Borrower's Advance and all funds advanced from or charged to Borrower's account under conditions set forth in this Loan Agreement, whether or not actually paid to Borrower.

What is difference between loan and advance? ›

Loans are a source of long-term financing (typically more than a year), whereas the advances are a source of short-term financing, that is, to be repaid within less than a year. The monetary value of an advance is usually less than that compared to a loan.

How are loan advances calculated? ›

An advance rate is used to determine the maximum loan amount that a lender is willing to extend. The higher the advance rate, the greater the potential loss to a lender from a loan default. The advance rate is calculated as (Maximum Loan Value / Collateral Value) x 100.

What are the types of loan and advance? ›

Types of secured loans
  • Home loan. Home loans are a secured mode of finance that give you the funds to buy or build the home of your choice. ...
  • Loan against property (LAP) ...
  • Loans against insurance policies. ...
  • Gold loans. ...
  • Loans against mutual funds and shares. ...
  • Loans against fixed deposits. ...
  • Personal loan. ...
  • Short-term business loans.

What are the 3 types of rates? ›

There are essentially three main types of interest rates: the nominal interest rate, the effective rate, and the real interest rate.

What are the 7 types of interest rates? ›

But broadly, here are the seven standard types of interest rates that you'll see among various financial products:
  • Simple interest. ...
  • Compound interest. ...
  • Effective Interest. ...
  • Fixed interest. ...
  • Variable interest. ...
  • Real interest. ...
  • Accrued interest.
8 Aug 2022

What is the maximum interest rate allowed by law in the UK? ›

The interest you can charge if another business is late paying for goods or a service is 'statutory interest' - this is 8% plus the Bank of England base rate for business to business transactions. You cannot claim statutory interest if there's a different rate of interest in a contract.

What is the latest interest rate in the UK? ›

The Bank of England base rate is currently at a high of 3%. The base rate was increased from 2.25% to 3% on November 2022.

What is the basic interest rate? ›

What is the base rate? It's the rate the Bank of England charges other banks and other lenders when they borrow money, and it's currently 3.00%. The base rate influences the interest rates that many lenders charge for mortgages, loans and other types of credit they offer people.

How do I calculate interest rate on a loan? ›

Great question, the formula loan calculators use is I = P * r *T in layman's terms Interest equals the principal amount multiplied by your interest rate times the amount in years. Where: P is the principal amount, $3000.00. r is the interest rate, 4.99% per year, or in decimal form, 4.99/100=0.0499.

How do I calculate 8% interest on a loan? ›

Simple Interest Formula
  1. (P x r x t) ÷ (100 x 12) ...
  2. Example 1: If you invest Rs.50,000 in a fixed deposit account for a period of 1 year at an interest rate of 8%, then the simple interest earned will be: ...
  3. Example 1: Say you borrowed Rs.5 lakh as personal loan from a lender on simple interest.

What are the types of advance? ›

Types of advances provided by banks to it's customers are:
  • Cash credit.
  • Bank overdraft.
  • Loan.
  • Discounting of bill of exchange.
  • Investment of funds.
  • credit creation.

How is cash advance interest calculated? ›

In the case of the $1,000 cash advance with the 24% APR, it would look like this: $1,000 x . 24 = $240, or the total amount of interest you'd pay on this if it took you a year to pay it back. 240/365 = $0.65, or the total amount of interest you're paying on this cash advance every day you don't pay it back.

How does a advance work? ›

A cash advance isn't like using your debit card to get cash. The money doesn't come from your bank account. Instead, it's added to your credit card balance. And a cash advance can come with fees and higher interest rates than typical credit card purchases do.

What are the 3 types of term loan? ›

There are three main classification found in Term Loans: short-term term loan, intermediate term loan, and long-term term loan.

What are the 2 main types of loans? ›

A secured loan uses an asset you own as collateral; the lender can take the asset if you don't repay the loan. An unsecured loan requires no collateral. They usually have higher interest rates than secured loans because they are riskier for lenders.

What are 4 sources of loans? ›

Banks, credit unions, and finance companies are traditional institutions that offer loans. Government agencies, credit cards, and investment accounts can serve as sources for borrowed funds as well.

What are 4 examples of rate? ›

Here are some examples of common rates: Speed limit, interest rate, crime rate, profit rate, birth rate, death rate, etc.

What are the different rates? ›

The term “interest rate” is one of the most commonly used phrases in the fixed-income investment lexicon. The different types of interest rates, including real, nominal, effective, and annual, are distinguished by key economic factors, that can help individuals become smarter consumers and shrewder investors.

What is the rate category? ›

Rate categories are a powerful feature used to group multiple rates together. For example, you can use rate categories to label rates and push different pricepoints to different channels and your website. Unless you specify otherwise, a "default" rate category will apply to all rates when they are first created.

What are key rates? ›

The key rate is the interest rate at which banks can borrow when they fall short of their required reserves. They may borrow from other banks or directly from the Federal Reserve for a very short period of time. The rate that banks can borrow from other banks at is called the federal funds rate.

What is interest rate example? ›

For example, if you borrow $100 with a 5% interest rate, you will pay $105 dollars back to the lender you borrowed from. The lender will make $5 in profit. There are several types of interest you may encounter throughout your life. Every loan has its own interest rate that will determine the true amount you owe.

What are the five types of rates? ›

7 Kinds of Interest Rates
  • Simple Interest. Simple interest represents the most basic type of rate. ...
  • Compound Interest. Compound rates charge interest on the principal and on previously earned interest. ...
  • Amortized Rates. ...
  • Fixed Interest. ...
  • Variable Interest. ...
  • Prime Rate.

What are the four 4 sources of interest rate risk? ›

Sources of interest rate risk

Banking corporations encounter interest rate risk in several ways, including repricing risk, yield curve risk, basis risk (also known as spread risk), and optionality risk.

Why are there different types of interest rates? ›

Interest rate levels are a factor in the supply and demand of credit. The interest rate for each different type of loan depends on the credit risk, time, tax considerations, and convertibility of the particular loan.

What's the highest interest rate a loan company can charge? ›

Judgments of the Court of Quebec have established that rates above 35% violate Section 8 of its Consumer Protection Act.

What is the highest interest you can charge on a loan? ›

There is no federal regulation on the maximum interest rate that your issuer can charge you, though each state has its own approach to limiting interest rates. There are state usury laws that dictate the highest interest rate on loans but these often don't apply to credit card loans.

What is an illegal interest rate? ›

Yet Article 15 of the California Constitution declares that no more than 10% a year in interest can be charged for “any loan or forbearance of any money, goods or things in action, if the money, goods or things in action are for use primarily for personal, family or household purposes.”

What is the current interest rate UK 2022? ›

The Bank of England Monetary Policy Committee voted on 22 September 2022 to increase the Bank of England base rate to 2.25% from 1.75%.

Are interest rates going up in 2022 UK? ›

On 3 November 2022, we raised our interest rate (Bank Rate) by 0.75 percentage points. In total, since December last year, we have increased our interest rate from 0.1% to 3%.

What will interest rates be in 2022? ›

Current Refinance Rates for November 2022

30-year fixed: 6.90% 15-year fixed: 6.21% 30-year jumbo: 6.87% 5/1 ARM: 5.51%

What is monthly interest rate? ›

A monthly interest rate is simply how much interest you would be charged in one month. This doesn't include any other charges associated with the loan, and it doesn't show exactly how expensive a loan actually is. APR, on the other hand, is the percentage rate charged on a loan over the term of one year.

What is interest on a loan? ›

Interest is the price you pay for borrowing money from a lender. That means you won't just pay back the money you borrowed. You'll also pay back an additional sum, which is the interest on the loan. Lenders take different approaches to charging interest.

What is the rate of interest per month? ›

To calculate a monthly interest rate, divide the annual rate by 12 to reflect the 12 months in the year.

How is advance interest calculated? ›

The advance rate is calculated as (Maximum Loan Value / Collateral Value) x 100.

Why am I being charged cash advance interest? ›

ATM or bank fee: If you use an ATM or visit a bank, you can expect a fee for taking out a cash advance. No grace period: Cash advances don't benefit from a grace period. That means you will be charged interest starting from the date you withdraw a cash advance.

What is interest only in advance? ›

Interest Only in Advance is a repayment option that offers Fixed Rate Investment Property Loan customers an additional interest rate discount for paying 12 months interest in advance.

Why is cash advance APR so high? ›

This APR is often higher than a regular purchase APR. Cash advance transactions also typically are not subject to a grace period, so your cash withdrawals often accrue interest on the same day the transaction is made.

How do I calculate the interest rate on a loan? ›

For example, if you take out a five-year loan for $20,000 and the interest rate on the loan is 5 percent, the simple interest formula works as follows: $20,000 x .05 x 5 = $5,000 in interest.

What are 3 different methods of calculating interest? ›

There are three different interest calculation methods you can choose from for your loan product: Fixed Flat. Declining Balance. Declining Balance (Equal Installments)

How do I calculate interest on a loan? ›

The rate of interest (R) on your loan is calculated per month. For example, If a person avails a loan of Rs 10,00,000 at an annual interest rate of 7.2% for a tenure of 120 months (10 years), then his EMI will be calculated as under: EMI= Rs 10,00,000 * 0.006 * (1 + 0.006)120 / ((1 + 0.006)120 - 1) = Rs 11,714.

How do I get rid of cash advance interest? ›

Pay off your cash advance as fast as you can

Since your advance begins accruing interest the same day you get your cash, start repaying the amount you borrow as soon as possible. If you take out a $200 cash advance, aim to pay that amount in full—or as much as possible—on top of your minimum payment.

What is the average cash advance fee? ›

Cash advances typically cost around 3.84% of the withdrawn amount. This cash advance fee is applied every time you use your credit card to get a cash advance. In addition to expensive cash advance fees, there is also a high cash advance APR (22.53%, on average).

How can I avoid paying a cash advance fee? ›

Card issuers typically charge a 3% or 5% fee per cash advance which can add up if you withdraw hundreds of dollars. How to avoid cash advance fees: Instead of taking out a cash advance, consider borrowing money from family or friends or take out a personal loan (which usually offer better terms).

Can I pay advance interest on home loan? ›

If you prepay your home loan, the amount goes towards repaying your home loan principal amount. The following month's interest would be calculated on the outstanding home loan principal amount. If you prepay the home loan, you can substantially reduce the interest component of the home loan.

Can we finish EMI in advance? ›

an advance EMI payment option can help you reduce the monthly EMI repayment burden. you have access to surplus funds at your disposal, you can pay an advance EMI payment. the longer the loan tenure, the more interest you have to pay to your lender. by paying EMI in advance you can decrease the tenure of your loan.

How long do interest-only loans last? ›

So what is an interest-only home loan? Simply put, borrowers only have to pay the interest for the period as well as any fees for a fixed period of time, usually five to 10 years. Therefore, during this period, the repayments are a lot lower compared to a principal and interest home loan.

Do cash advance hurt your credit? ›

A credit card cash advance won't directly hurt your credit score, but it will hurt it indirectly by lifting your outstanding balance and your credit utilization ratio, which is a factor in credit scores.

What is too high of a APR? ›

A 36% APR is not good for credit cards, mortgages, student loans, or auto loans, as it's far higher than what most borrowers should expect to pay and what most lenders will even offer. A 36% APR is high for personal loans, too, but it's still fair for people with bad credit.

What is the highest APR on a payday loan? ›

Payday Loan Example

Note: most payday loans charge the maximum interest rate of 0.8% per day.

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