Standard chartered bank decides the base rate keeping in mind, the cost of the current and savings account (CASA) along with the 6-9 months term deposit rate, and other factors which are common amongst all of the bank’s loan customers. The existing bank rate of the bank stands at 9.50% p.a.The bank, depending upon various factors such as the credit worthiness of the customer, the quality of the property being kept as collateral, nature of the applicant’s business and the risks involved in the operating sector, account behavior, relationship with the bank, costs and other related factors, decides the percentage of margin to be kept in between the variable rate of interest and the base rate. The margin may fluctuate according to the changes in these factors.
Services Fee and Charges
The bank levies certain service fee and charges against the loan that it issues. The list of Charges is given below:
The above mentioned charges are exclusive of service taxes. Service tax of 14% will be charged over and above the mentioned charges.
However, the maximum interest rate cannot exceed 27% p.a.
The bank adopts a healthy repayment and prepayment facility. It ensures that the repayment of the loan is convenient for all the applicants. Hence, it has a proper schedule laid down for the same. The details for which are given below:
The bank allows for the repayment of the loan by the ways of Equated Monthly installments (EMI’S). EMI’s are calculated on the basis of accrued interest and principal to be paid monthly at the specified date.