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Annexure I

Interest Rates linked to MCLR:

1. Micro and Small Enterprises (MSE):

i) Revised Rate of Interest structure for MSE advances:

a. Advances to Micro & Small Enterprises covered under CGTMSE

Category Existing Rate of interest Proposed ROI


Limits up to Rs. 10.00 lakh Base Rate MCLR
Limits above Rs. 10.00 lakh and up-to MCLR+2.00%
Base Rate + 2.00%
Rs. 50.00 lakh
For loans above Rs. 50.00 lakh interest rate will be governed as per As per RBP
Risk Based Pricing Framework.

In respect of advances having total limits above Rs. 2.00 lakh, Credit Rating will have to be
done as per extant guidelines.

ROI will not be linked to Credit Rating for advances to MSE having total limits upto
Rs.50.00 lakh and covered under CGTMSE. However, Credit Risk Rating (CRR) will continue
to be done for risk perception in respect of advances having total limits above Rs.2.00 lakh and
upto to Rs. 50.00 lakh.

b. Advances to Micro & Small Enterprises NOT covered under CGTMSE

Category Existing Rate of interest Proposed ROI


Limits up to Rs. 10.00 lakh Base Rate MCLR
Limits above Rs. 10.00 lakh and above As per Risk Based Pricing Framework

c. Advances to Micro and Small Enterprises having limits (Fund + Non fund) upto
Rs.500.00 lakh as per internal rating:

Existing Rate of interest Proposed ROI Proposed


Internal for more than Rs. 10 ROI
Existing Rate of
Rating lakh to Rs. 100 lakh
interest for More
(including loans above
than Rs.100 lakh &
Rs. 10 lakh to Rs. 100
upto Rs.500 lakh
lakh not eligible to be
covered under CGTMSE)
AAA Base Rate + 1.75% MCLR+1.75% Base Rate + 1.75% MCLR+1.75%
AA Base Rate + 2.25% MCLR+2.25% Base Rate + 2.25% MCLR+2.25%
A Base Rate + 3.00% MCLR+3.00% Base Rate + 3.25% MCLR+3.25%
BBB Base Rate + 3.50% MCLR+3.50% Base Rate + 3.75% MCLR+3.75%
BB Base Rate + 4.25% MCLR+4.25% Base Rate + 4.50% MCLR+4.50%
B&C Base Rate + 5.00% MCLR+5.00% Base Rate + 5.25% MCLR+5.25%
d. Advances to Micro and Small Enterprises having limits (Fund + Non fund) above
Rs.500.00 lakh & up to Rs.20.00 Crore as per external rating:

External Rating Existing Rate of interest Proposed ROI


AAA Base Rate + 1.00% MCLR+1.00%
AA Base Rate + 1.75% MCLR+1.75%
A Base Rate + 2.25% MCLR+2.25%
BBB Base Rate + 2.50% MCLR+2.50%

BB Base Rate + 3.50% MCLR+3.50%


B, C & D Base Rate + 4.50% MCLR+4.50%
Unrated Base Rate + 3.50% MCLR+3.50%

In addition to the above, to incentivise and attract better asset quality of Priority lending, the
additional discount/reduction in rate of interest based on percentage of Collateral security
offered by the borrowing MSE unit as under

Percentage collateral security offered Discount / reduction in rate of interest


More than 50% to 75% 0.25%
More than 75% to 100% 0.50%
More than 100% 0.75%

Eligible collateral securities for concession in rate of interest for MSE advances are as under

Nature of security valuation


1 Freehold land and building (excl. agricultural land Distress value
2 Paper securities in the form of
I FDR Principal + accrued interest
Ii NSCs/KVPs-Kisan Vikas patra Principal + accrued interest
Iii Insurance policies Surrender value
Iv Debt instruments of public ltd companies with AAA & AA Principal amount
rated by RBI approved external rating agencies.
V Government securities Principal amount
3 Gold Valuation by approved valuer

ii) Scheme for Financing to Trade, Service & MSE (loan against property):

loan against security of Existing Rate of Interest Proposed ROI


Property /NSC/KVP/ Bank
TDR/ Other paper security
Loan for Priority Sector Base Rate + 3.25% MCLR+3.25%
Loan for Non-Priority Sector Base Rate + 4.00% MCLR+4.00%

iii) Special scheme for financing Doctors, Chartered Accountants, Engineers and
Architects:
Loan amount Existing Rate of Interest Proposed ROI
Loan upto Rs. 100.00 lakh Base Rate + 0.50% MCLR+0.50%
Loan above Rs. 100 lakh and upto Rs. Base Rate +2.00% MCLR+2.00%
200 lakh
Loan above Rs. 200 lakh and upto Rs. Base Rate +3.00% MCLR+3.00%
500 lakh
iv) Special scheme for financing Transport Operators (Mahabank Transport
operator Loan scheme.)

Loan amount ( For New Vehicle) Existing Rate of Interest Proposed ROI
Loan upto Rs.25.00 lakh Base Rate + 0.50% MCLR+0.50%
Loan above Rs. 25 lakh and upto Base Rate +1.50% MCLR+1.50%
Rs. 100 lakh
Loan above Rs. 100 lakh and upto Base Rate +2.50% MCLR+2.50%
Rs. 200 lakh

Only for existing accounts (Financing to old vehicle is discontinued)

Loan amount ( For old Vehicle) Existing Rate of Interest Proposed ROI
Loan upto Rs.25.00 lakh Base Rate + 0.50% MCLR+0.50%
Loan above Rs. 25 lakh and upto Base Rate +2.50% MCLR+2.50%
Rs. 100 lakh
Loan above Rs. 100 lakh and upto Base Rate +3.50% MCLR+3.50%
Rs. 200 lakh

v) Loans under PMMY (MUDRA) Scheme:

Existing Slab Existing ROI Proposed ROI


Loan upto Rs.10.00 lakh Base Rate MCLR

2. Agriculture:
i. Agriculture
Cash Credit / Working Capital Limits* / Term Loans
Size of Advance Existing Rate of Interest Proposed ROI
Up to Rs.50000/- Base Rate + 0.75% MCLR+0.75%
Above Rs.50000/-& up to Rs.2 lakh Base Rate + 1.50% MCLR+1.50%
Above Rs.2 lakh & up to Rs.10 lakh Base Rate + 2.00% MCLR+2.00%
Above Rs.10 lakh Base Rate + 3.00% MCLR+3.00%
*Short term production credit 7.00% (Fixed). 7.00% (Fixed).
including Gold Loan up to Rs. 3.00 If loan remains unpaid after If loan remains unpaid
lakh to Farmers where interest cut-off date/period after cut-off date/period
subvention is available stipulated as per Interest stipulated as per Interest
Subvention Scheme, Subvention Scheme,
applicable rate of interest applicable rate of interest
will be as per above slabs. will be as per above slabs.
*Short term production credit Applicable rate of interest Applicable rate of interest
including Gold Loan above Rs. 3.00 will be as per above slabs. will be as per above slabs.
lakh to Farmers where interest
subvention is not available
Advances under Mahabank Krishi
Shakti Yojana for selected districts Base Rate + 1.25%
MCLR+1.25%
& selected crops as per guidelines
Loans for construction of Rural
Godown / Warehouse upto Rs. 1.00 Base Rate+0.50% MCLR+0.50%
Crore
ii) Advances to FSCS / PACS /LAMPS:

Size of Advance Existing Rate of Interest Proposed ROI


Up to Rs.25000/- Base Rate + 1.00% MCLR+1.00%
Above Rs.25000/- Base Rate + 1.50% MCLR+1.50%
iii) Advances to Self Help Groups (SHGs):

Particulars Existing Rate of Interest Proposed ROI


For single SHG Base Rate + 1.50% MCLR+1.50%
For Federations / NGOs Base Rate + 1.00% MCLR+1.00%