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 Union Bank
Jt-'fr5~ of/rid/a
Credit Policy fI: MSMEDepartment, Central Office
Union BankBhavan, 2.39,Vidhan BhavanMarg, Nariman Point, Mumbai 400021
Instruction Circular No. 887-2017 30'" June 2017

TO ALL BRANCHES/OFFICES

Management of Credit Portfolio -

Modification in Service Charges pertaining to Domestic Rupee Advances
st
on implementation of Goods 8: Services Tax (GST) w.e.f 1 July 2017

1. Attention of branches/offices is invited to Instruction Circular 666.2016 dated

22.11.2016 vide which extant service charges pertaining to Domestic Rupee
Advanceswere conveyed.

2. Goods f1 Service Tax (GST) was introduced in the 101" amendment 'in the
Constitution of India. Implementation of GSTwas intended to develop a unified tax
structure which will drive the economy towards a destination based tax shifting
from source basedone.

3. With introduction of GST from 01.07.2017, Service Tax is going to b€ abolished.

Accordingly, the impact of GST on the financial services especially service charges
pertaining to. Domestic Ru'pee Advances will have. a paradigm change.
Consequentially, with effect from 01.07.2017, all these service charges on Banking
Services will attract GST @ 18% instead of present service tax @ 15%. The
updated/modified service charges pertains to Domestic RupeeAdvancesis enclosed
as Annexure-I, which also includes rules governing the service charges enclosed as
Annexure-II for providing clarity on application of service charges related to
Domestic RupeeAdvances.

4. Accordingly, the service charges pertain to Domestic.Rupee Advances is modified

giving the effect of GSTthereon.

5. This circular supersedes the previous guidelines on service charges on Domestic

RupeeAdvancesissued by the Bank.

6. The rate of GST at present applicable to service charges pertaining to Domestic

Rupee Advances is 18%. In case of any change in GST by Govt. of India,
branches/offices are required to compute and recover the revised service charges
accordingly.
7. The aforesaid modification in the service charges on Domestic Rupee Advances
shall lie effective from 01.07.2017. The necessary system support in Finacle for
recovery of applicable service charges will be provided by Dept. of Information and
Technology, Central Office.

8. Branchesand Offices are required to take a careful note of the above guidelines
and ensure strict compliance.

General Manager
0).

2
 Credit Policy & MSMEDepartment, Cent~at Office

INDEX
PART-A (PROCESSINGCHARGESON FUND BASED(WORKING CAPITAl), TERM LOAN AND NON FUND BASED
LIMITS)

Sr. No. Particulars Paoe No.

1 Processing charges on Wor1<ingCapital (FB) - Fresh Sanctions - Per Proposal 1
2 Renewal/ Enhancement 1
3 Ad-hoc sanctions 2
4 Non fund Based Workin;' Canital 2
5 Non Fund Based other than Workirn! capital 2
6 Upfront recoverv of nrocess;ng fees 2
7 Refund of Processine fees 3

B Processine charrzes on
Advances aea;nst deposits 3
MSE loans uoto RS.5 lacs 3
Bank Guarantees / Letter of Credit backed by 100% & above Cash /FOR margin
ItSelf/third nartv FOR of our Bank\ 3

9 Concessional orocessine charnes 3

10 Processing charges on Term Loan / DPGL / Demand Loan (Upfront one time fees)

10.1 One Time Upfront Processing Charges on Term Loans 3

10.2 Processing charges for Term Loan to Trader's / Doctors (including Union Trade f Union
~~) . .' . 4
10.3 Processing charges for Term Loan for Lease Rentals (Union Rent) 4
10.4 Review of Term Loan 4
10.5 Process;nQcharQes on Short Term Loan 5
10.6 Pr~navment charQes 5
10.7 Commitment charees for unutllised limit / underutilised limit 6

11.1 Processine charees for MIscellaneous Reouest 6

11.2 Issuance of NOC 7
11.3 Earmarking limits for Commercial Papers / STLs to be availed with other banks / our
Bank 7

12 Processing charges on Retail Lending Schemes

12.1 Union Home 7
12.2 Union Miles 7
12.3 Union Reverse Mortgage 7
12.4 Union Top-Up 7
12.5 ~Mortgage 7
1l •.kr . Mortgage Plus 7

(fo I'? f>v % !f,

~~ "N
~ I'?~ ~
~1,f-OF INO\~~ '$'
 7
12.7 Union Personal
7
12.8 Union Cash 7
12.9 Union Health 7
12.10 Union Education 7
12.11 Union Smile

8
Processing and Service Charges on Crop I Gold loans

PART-8 (Schedule of Miscellaneous Charges I Other Service Charges pertaining to advances)

Particulars Page No.

Sr. No.
1 Guarantee Commission 9
1.1 Performance Guarantee 9
1.2 Other Guarantees 9
1.3 Renewal I Extension of Guarantee 9
1.4 Guarantees Secured by 100% cash margin (Per BG)
Guarantee secured by 100% term deposit induding third Party Deposits of our Bank
1.5 9
9
1.6 Letter of Comfort
Refund of Guarantee commission on guarantees tendered for cancellation before the
1.7 9
exoirv date

2 Inland Letter of Credit 10

2.1 LC opening char~es • Usance Charge 10
2.2 LC Ooening chal1!es • Commitment charge 10
2.3 Extension of period 10
2.4 Other amendments to LC'Per amendment) 10
2.5 Increase in amount of credit 10
2.6 Revolving LC 10
.

2.7 Advising ofLCs 11

2.8 Advising of amendments (Per amendment) 11
2.9 Confirmation of LC 11
2.10 Transferable LC . Per Transfer 11
2.11 Acceptance commission 11
2.12 Negotiation charges 11
Guarantees on account of discrE!oancies in documents 12
2.13
2.14 LCsecured by 100% cash margin.! term deoosit 12
2.15 standby LC 12
.

2.16 Overdue interest I 12

2.17 IAttestation of commercial \nvoice 12 ,
2.18 Out of DOcketexoenses
Charges of authorised signatory including reconstitution of account (Per charge) 12
2.19 12
RedelTlotion of securities(other than loan against deposit)
2.20 Transmitting of Inland LCthrough SFMS(for each completed LC)- (As charged by
2.21 12
IDRBTfrom Member Banks) 13
Non-payment and non-acceptance of bills on presentation f on due date
2.22
13
3 Documentation Charges 14
Inspection Charees on advance-proposals (Per visit) 14
4
'"-=~table Mort~a~e Charge

z
~~r
i ~~
~.
",X'1>~
.~ ~
9.
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<P,

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 6 Registration of Equitable Mortga2e With Central Re2istrv 14
7 Satisfaction of Equitable Mort2age with Central Registrv (Per Case) 15
8 l.ead Bank Charges
.
.15
9 Holding of consortium meeting 15
10 Project Appraisal Charges / Technical Inspection Char2es . 15
1.1.1 Issuance of Solvencv Certificate - Charges per certificate 16
11.2 . CapabilitvCertificate 16
12 Issuance of any other certificate for business puroose 16
.13 Marking of / lifting of lien on NSCIRBIBonds/KVP IIVP Assignment of LlC Policy (Per 17
14 Marking of flifting of lien with. RTO/ revenue authority (Per account) 17
15 TUF subsidy application processln~ fee 17
16 Char!!es for supplying copy of document 17
17 Services Charg5 for providing credit opinion including introduction 17
18 ROCrel!istration/modification /satisfaction charges 17
19 Search Reoort 18
20 Registration of power of attorney (For each POA)
.
18
21 CDRAlC Debt Involved 18
22 Pulling of report from portal of Credit Information Companies including CIBILon the
request of the customer 19
23 Pulling of report from portal of Credit Information Companies including CIBILfor
Credit Appraisal 19
24 . Fees for opening I operating Escrow / TRA (Trust Ii: Retention ale) accounts 19

PART-C RULESGOVERNING
THE SERVICECHARGES
1 Processing charges on Working Capital! One time upfront.fees on Term Loan 20
2 Processing charges in review/renewal of limits 20
3 Processing charges on Review of Term Loan 21
4 Pre-payment penalty for pre-maturity closure of Term Loan .
21
.5 Commitment charges on un-availed f or partly availed sanctioned limits. 21
6 Charges on interchangeability of limits / sanction of sub limits 23
7 Recovery of processing charges in miscellaneous request 23
8 Service Charges waived for Retail Lending Schemes 23
9 Commission on Bank Guarantee 24
10 Documentation Charges .25
11 Equitable Mortgage Charges 25.
12 Lead Bank Charges ,26
136:14 Miscellaneous 26

PART-D LISTOF CIRCULARS 27

, '-:!-;:".~
'.. ~;F
 Annexure.1
UNION BANK OF INDIA
Credit Polley B:MSME Department, Central Office

PART.A
Schedule of PROCESSING I SERVICE CHARGES pertaIning to advances
(Excluding Retail lending schemes and crop loans upto Rs,3 ,lacs and gold loans given seperately as per point 12 B: 13 respectively)

Exlstln" Charaes RevIsed Charlzes

Total Revlsed (Basic Applicable Goods B: Total
ExIstIng (Basfc Service Applicable
Sr. No. Particulars Serytce sorvtce Charges) Services Tax
Cha'!les)
(GST)@lB%
Tax(ST)@lS%

PROCESSING CHARGES ON FUND BASED (WORKING CAPITAL), TERM LOAN AND NON FUND BASED LIMITS
(In Rs.l
1 Processlno charoes on Workln, CaDltal IFIlI.Fresh Sanctlons- Per PrDDosal 0.00
0.00 0.00 0,00
Upto Rs.25,ooO . Priority sector 0.00 0.00,
250.00 45.00 ' 295.00
250.00 ,37.50 2B7.50
Upto RS.25,ooO . other than
PriDrity Sector
400.00 72.00 472.00
400.00 60.00 460.00
Above Rs.25,ooO . RS.2.oo lacs

300 per lac, minimum Rs.10oo +ST 300 per lacJ mtnhnUlll RS.1000 + GST
Above RS.2.oo lacs. RS.l0.oo
lacs
Above RS.10.oo lacs 350 per lac (Maximum RS.30 lacs) + ST 350 per lac maximum 30 lacs + GST

No processing charges for MSE (oan upto Rs,5.00lacs, No processing charges for MSE loan upto Rs.5.00lacs,
agriculture loan LiplO Rs. 3 Lacs and advance to SHG.& JLG upto agriculture loan upto Rs. 3 Lacs and advance to SHG a
RS.3.oolacs. JlG upto Rs.3.oolacs:

No processing charges for Bills Discounted under lC of Prime No processing charges for Bills Discounted' under lC of
Bank on regular I ad.hoc limit. Prime Bank Dn regular I ad.hoc limit.

2 Renewal! Enhancement
I Renewal at exlstlno level I Same as Point NO.1 above I Same as Point NO.1 above

~'
~ ~
'l'i~~~~.
6l~~~r. I
~1q-, ~ Page 1
OF/NO'l'-
-
--------------~-----------------_ .... _-

(il) Renewal with enhancement Same as Point NO.1above Same as Point NO.1above

Note 1 . If enhancement is subsequent to ;;;newal of original limit: Normal charges should be levied on pro. rata basis for the relevant period so as to
coincide with expiry date of original limit. Note 2 . In
case the facility Is utilised during the Intermittent period i.e. from the expiry of original limits till its renewal (or cancellation/abeYance, as the case may
be), processing charges at prescribed rates an pro-rata basis should be levied. Whenever short-review is undertaken, processing charges from the expiry of
original limit till short review should be recovered at the prescribed ~ates on pro. rata basis.
Note 3 - In case th~ facility Is kept under abeyance during the Intermittent period or perl0d Stipulated by the sanctioning authority, processing charges
need not be levied.

3 Ad-hoc sanctions 150%of normal charges for actual period of adhoc limit 150%of normal charges for actual period of adhoc limit
+GST

4 Non fund Based Working 50%of charges levied for FBWC limits with Maximum 30 lacs' + 50%of charges levied for FBWClimits with Maximum 30
Capital ST ('Maximum fo~ both FBWC & NFB) lacs' + GST ('M•• lmum for both FBWC & NFB)

5 Hon Fund Based other than 50%of cha~ges levied for FBWC limits with Maximum 30 lacs' .• 50%of charges levied fo~ FBWC limits with Maximum 30
Wo~klng Capital ST ('Maximum for both FBwe & NFB} lacs' + GST ('Maximum for both FBWC & NFB) .

6 Upfront recovery of RS.1.00 cr (lind above - 50% before handing over the sanction Rs.1.00 cr and above - 50%before handing over the
processing fees letter to the customer & remalntng 50%at the Ume of sanction letter to the customer a remalnfnQ 50% at the
documentation. + ST time of documentation. + GST
Below RS.1.00crore: 100%at the time of documentation + ST Below Rs.1.00crore: 100%at the time of documentation
+ GST

Page 2
 7 Refund of Processing fees a. 75% of the charges recovered at the time of handing over the
sanction letter to be refunded if ;anclion is not agreed when
conveYf~d.
b. However, if the consent I acceptance or otherwise for limit
sanctioned is not given within 2 weeks from conveying of
sanction by branch, the processing charges recovered upfront
will be forfeited.
I
c. Procl~sslng charges recovered by the Bank on completion of
documentation will not be refunded whether limit is availed
fully or not.
d. In case tlmits allocated in a consortium arrangement is loyter
than the sanctioned limit, the processing charge will be
recovered on allotted limit as per documentation and excess
processing charges, if any wilt be refunded by the Bank.
The maxImum ProcessIng -charges for both FB 6: NFB WorkIng The maximum Processing charges for both FB 6: NFB
Capital facility shall be RS.30Lacs + ST
a. 75% of the charges recovered at the time of handing
over the sanction letter to be refunded if sanction is not
agreed when conveyed.
b. However, if the consent I acceptance or otherwise for
Limn sanctioned is not given within 2 weeks from
conveying of sanction by branch. the processing charges
recovered upfront will be forfeited.
c. Processing charges recovered by the Bank on
completion of documentat1on will not be refunded
whether limit ls availed fully or not.
d. In case limits allocated in a consortium arrangement is
lower than the sanctioned limit, the processing charge
will be recovered on allotted limit as per documentation
and excess processing charges, if any will be refunded by
the Bank.
Nott~:lfconcession is approved at the time of the
supply of service and transaction value is net of
discount, GST needs to be paid only on the transaction
value. I~concession is subsequently given ,GST already
Raid should not be refunde_9.
Working Capital facility shall be Rs.30Lacs + GST

8 Processing charges on:

Advances against deposits Nil INii Nil Nil I Nil lNII
Nil
-- Nil
MSEloans upto Rs.5 lacs
Bank Guarantees I Letter of Nil Nil NIL Nil Nil Nil
Credit backed by 100% B: above
Cas" /FDR margin (Self/third
party FOR of our Bank)

9 Concessfonal orocessinlt charges: . -

Advances against Government 50%processing charges 'I- ST 50% of applfcable processIng charges + GST
Securitles, UTI/Mutual Fund
Units, NSCs, KVPs, lYPs, RIBs,
_.
10 Processing charges on Term Loan I DI)GL/ Demand Loan (Upfront one thm:~'fees)
10.1 One Time UDfront fees on Term Loans
UDto RS.25000 250 T 37.5 I 287.5 250 I 45.00 T 295.00
500 I 75 I 575 500 I 90.00 I 590.00
~OO. RS.2lacs
1% + ST 1% • G5T

~~.",,~~
s I}.
:<. ~1>~~'
CD 'I}. f1
% " "".nr Page 3
,rn, >f<' j;J)
 Above 50 crs 0.75% (Minimum RS.50.00Lacs Ii Maximum RS.l.00 Clore) +5T 0.75% (Minimum RS.50.00Lacs Ii Maximum RS.1.00 erore)
+ GST
No proces~ng charges for MSEloan up!o Rs.5.00Lacs. No processing charges for MSE loan upto RS.5.00Lacs.
10.2 Term L,oan for Traders I
Doctors (Including Union
Trade /Union Health)
Uoto Rs,10 cr 1% + ST ,- 1% + GST
Above Rs.l0 cr to RS.2S erores 0.75% + ST .. 0.75% + GST
Above Rs.25 crores 0.50% + ST ,

0.50% + GST
10.3 Term loan for Lease Rentals ' ,

Union Rent)
uoto Rs.5 cr O.~O%+ ST 0.50%" GST
Above Rs.5 croreS 0.25% + ST O.ZS%'+GST
lOA At the time of review H Processing charges should be levied on outstanding loan amount + unavaHed amount and not on the sanctioned amount

8. In case no additional
facility I restructuring I
reschedulement Is Involved

Upto Rs.SO lacs 0.00 0.00 0.00 0.00 0.00 0.00

Above 50 lacs upto RS.5 crares 0.075% subject to maximum ZO.OOO.OO + ST 0.075% subject to maximum ZO,OOO.OO + GST

--
Above 5 crs upto 10 crs 0.040% subject to ",axlmum Rs.35,OOO.OO+ ST 0.040% subject to ",axlmum Rs.35,OOO.OO+ GST

Above 10 crores 0.035% subject to maxImum RS.75,OOO.OO.• ST 0.035% subject to maximum Rs.75,OOO.00 + GST

b. In case of any add1t1onal1% for the additional Tenn Loan and 0.25% for restructured I 1% for the additional Term Loan and 0.25% for
facility I restructuring I rescheduled a.mount or refinance under 5/25 scheme of existh~g restructured I rescheduled amount or reffnance under
reschedulement is Involved term loan. (Subject to maximum Rs.l.0OCrore + 5T) 5/25 scheme of existing term loan. (Subject to maximum
RS.l.0OCrore + GST)
/~ ~'1 >I::'"

~ ""
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ff
~~'~

9. #~r>;~
<l}. '''? ~
:t-t OF INIl\\'

Page 4
10.5 Processing charg.es on Short Same as applicable for Fund Based Working Capital facility and Same as applicable for Fund Based Working Capital
Term Loan to be recovered separatly. facility and to be recovered separatly.
(It ts clarified. that charges ft maximum ceiling of FB we will be (It Is clarified that charges fr maximum cefling of FBWC
applicable on pro-rata basis as pertenor of Short Term loan. will be applicable on pro-rata basis as per tenor of Short
For exampte STL of 3 months ~ll have processing charge of Term Loan. For example !iTL'of 3 months wilt have
1/4th of applicable charge for FBWClimit with maximum of processing charge of 1/4th of applicable charge for FBWC
Rs.7.501acs.) limit with maximum of Rs.7. 501acs+GST)

Notes: 1.No processing Covered In Rule Governing the Service Charges Covered tn Rule Governing the Service Charges
charges on restructuring of the
iI. Crop Loans, b. Any other
agriculture (oans, c. Education
loans, d. Micro Enterprises and
e. Small loans upto Rs 5.00
lacs.
2. Flat processing charge of
Rs:500/-+GST on restructuring
per housing loan
10.6 Pre;poyment charges In respect of Term Loans both priority and non'priorlty one In respect of Term Loans both priority and non-priority
time pre-payment penalty will be Imposed @ 1%on Ihe one time pre-payment penalty will be imposed @ 1% +GST
outstanding liability. Pre payment is ~ot applicable for on the outstanding liabilit.y. Pre payment is not
working capital facilities. applicable for working capital (acHitles. '

Page 5
10.7 Commitment charges for 0.50% p.a. + 5T [It would be applicable to all borrowal accounts 0.50% p.a. + G5T lit would be applicable to all.borrowal
unutillsed limit / where total limits (Fund based werking capital plus non. fund. accounts where total limits (Fund based working capital
underutlllsed I1mlt based plus Term Loan) is RS.5 crores and above.] plus non. fund based plus T'm" Loan) Is RS.5crores and
above.]

11 Processingcharges for
Miscellaneous Request
Corporate & Non.Corporate Clients: Corporate II Non-Corporate Clients:
11.1 l.Modlflcation in limits / Upto Rs. 10.00Lacs - RS.2500 + GST
sanction terms. per occasion Upto Rs. 10.00Lacs . RS.2500 + ST
Above Rs.10 lacs to Rs.1.OOcrore. RS.15000+ GST
(Including Sanction of new line Above RS.10Lacs to RS.1.00crore . RS.15000 + ST Above RS.1.00crore to RS.10.00crore - Rs.25000 + GST
of credit by earmarking Above RS.l.00crore to RS.10.00crore - RS.25000+ 5T
Above RS.10crores to RS.50crore . RS.50000+ ST Above RS.10crores to Rs.50 crore - Rs.50000 + GST
existing limit) Above RS.50crores - RS.100000 + GST
2.Revatidatton of lfm1ts Above RS.50crores. RS.100000 + ST
(In case Cifad hoc limit, processing charges is to be recovered (In case of ad hoc limit, processing charges is to be
3. Sanction/Roil over of FCl
as per Point No.3 above) recovered as per Point No.3 above)
4. Issue of Comfort Letter for
Buyers Credit
5.lllterest concession
6. Redtlcl10Tl in
commission/other service
charges.
7.Reduction In
Margln/collaleral coverage
8.walver of personal/corporate
guarantee
9.Waiver of any other sanction
stipulation.
10.Any other misc. request.

Page 6
 11.2 Issuance of HOC

Corporate Customers
Non-corporate customers Sarne as Point No.11. 1 Same as Point No. 11. 1
11.3 Enrmarklng limits for 0.10% of the amount of limit eannaf1<.ed. "A,lnlmum. Rs.7.5000 &. 0.10% of the amount of limit earmarked. Mlnlmum-
Commercial Papef1 I ~TLs to be Maxfmum. Rs.2 lacs + ST Rs.25000 a Maximum - Rs.2 lnes .• aST
availed with other banks I our
Bank

12 Processing chlliraas on Retail Lending Schemes

EXISTINGCHARGES REVISED CHARGES
Sr No Scheme Processing Chames MaxImum Processing; Charlles Maximum
12.1 Union Home 0.50% of toan amount ..•ST Rs 15000 f ST 0.50% of loan amount ..•GST Rs 15000 ..• GST
12.2 Union /Alles 0.50% of IOlln l!Imount ..• ST Rs. 15000 '. ST 0.50% of loan amount ..•GST Rs. 15000 ..•GST
No charges for Staff members (Applicant I Co- No charges fC?( Staff members
applicant) availing lmm under UnIon Mile (Applicant I Co-applicant) availing lo~n
Scheme under Union MHe Scheme Nil
Applfcalltl Co-apptlcant Is SB account holder Rs.7500+$T Appllcantl Co-applicant Is S8 account
In sHyer I gold I platinum category, then 50%. holder 1n s.i1ver I gold I platinum
relaxation In processfng charges I.e. 0.25% of category, then 50% retalCBtlon fn
toan amount .•.ST processlng"charges f.e. 0.25% of loan Rs.75D0.GST
n case appucant, \.o-appucant 118S availeD Rs.7SOO.ST n case appucant/.l.O-appucant nas.
any credit fncitlty Ytlith our Bank, then 50% availed any credit facUity with our
relaxation fn processing charges l.e. 0.25% .o( Bank, then 50% relaxntlon in processing
loan amount + ST cf1anl'es I.e. 0.25% of loan amount .•.GST Rs.7S00.GST
12.3 Union Reverse Mortgage RS.10000.ST
0.50% of loan amount + ST 0.5000 of loan amount + GST R'.1000D->GST
12.4
Union Top"Up 0.50% of loan t1mount .•.ST 0.50% of toan amount .•.GST
12.S UnIon Mortstlg~ O.5m of toan amount + ST 0.50% of loan amount. GST
In case of Staff members: 0.25% of loan amount f. ST In case of Staff members: 0.25% of 1000n amount f. GST
12.6 Union Mortgage Plus. 1% of loan amount SJ
of 0.50% of loan amount +GST
12.7 8.0.50% of toan amount subject to a mlfllmum of Rs.SOO.
Union Personal 8.0.5Ot; of 10al1 amoUllt subject to a mlnl/Tlum of Rs.500 +ST GST
b. Nil In case of personal loans to exlstlng housing loan
b.NIl In case of personal loans to e}l;lstlng housing loan borrowers borrowers
12.8 0.10% of loan amount subject to minimum of RS.100 .•
UnIon Cash 0.10% of loan amount subiect to mlnhnum of Rs.l00 + ST GST
12.9 Unloll Health 0.50% of (oan amount +ST 0'.50% of loan amounl + GST
12.10 Union Education Nil I~II
12.11 Union Smile Nil Nil

Page 7
 13 Processing Md Service-Charges on troD I Gold loans
EXISTING CHARGES REVISED CHARGES
-
.
Advoci;'!'te Processing Documentatlon Inspection Advocate
Particulars Processlnn Documentation Inspectlon
No.
13.1 Crop loans (KCC I UGC)
Nil Nil Nil Nil Nil
UplO Rs.3 lacs Nil Nil Nil
Normal charges as per schedule of service charges + GST
Above Rs.~ lacs Normal charges ,as per schedule of se-Mce charges + 5T
I I I I T I
. REViSED CHARGES
EXISTING CHARGES.
Holding I Processing Documentation IMped:lon Holding'
Processing Documentation Inspection
Handling
Handling
13.2 Gold loans Upto RS.20 lacs. Nil
Upto Rs.20 lacs .
Upto ~.20 lacs - Upto RS.lO lacs. tlll Nil
>. Gold loans for agriculture Nil Nil
Nil
Nil Nil
purposes Above RS.20 lacs
Above Rs. 20 lacs
AbO\le RS.20 lacs - Above RS.20 lacs
- Normal
- 25% of normal
25% of normal . Norm1'l1
documentation inspection
documentat1on inspection
chara~s + GST charoes .•.GST
char"'cs + ST chames + ST
Upto RS.20 lacs. Nil 0.50% of limit Upto RS.20 lacs- Upto Rs.20 lacs . Nil
Gold Loans for other than 0.50% of limit sanctioned .•. Upto Rs.20 lacs -
b. sanctioned + GST Nil Nil
S1 subject to maximtlm Nil Nil
agriculture purpose!; (Non- subject to maximum Above Rs.20 lacs Above Rs.10 lacs
lOoo+5T Above RS.20 lacs. Above Rs.20 lacs
Priority Sector as welt as 1000 .•.GS1 . Honnal . Nonnal
Normal -Monnal
priority sector other than documentation inspection
agriculture)
documentatlon Inspection
charges + GS1 charges + GST
charges + S1 charges ~,S1

ds- Q: Service Tax Q) 18.00% on Baste charg.es from 01.07.2017

"f!',-n<l
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Page 8
 UNIONBANKOF INDIA
(redlt Policy a MSME.Department. Central Office

PART-B
Schedule of OTHER SERVICE CHARGES Dertalnlna to advances

Exlstimt Revised
Sr. Existing Applicable Service Total Revised Applicable Goods Ii Total
Particulars
No. Tax(ST)@15% services Tax
IGSTl@18%
MISCELLANEOUSCHARGES (In Rs.)

1 Guarantee Commtsston
1.1 Performance Guarantee 2% pa + 5T Minimum (0['1 quarter 2% pa + qST Mln1mum for 1 quarter

1.2 Other Guarantees 3% pa + 5T Mintmum for 1 quarter 3%pa + GST Minimum for 1 quarter

1.3 Renewal I Extenston of Same charges as applicable for issuance of fresh guarantee except Same. charges as applicable for issuance of fresh guarantee except
Guarantee that the claim period not to be charged If t~e renewal1s effected that the claim period not to be charged If the renewal is effected
before the expiry date of the original guarantee before the expiry date of the original guarantee

1.4 Guarantees Secured by 100% 500.00 75.00 575.00 500.00 90.00 590.00
cash maroin IPer BG'
1.5 Guarantee secured by 100% 25% of normal charRes to be recovered for minimum 1 quarter + 25% of normal charges to be recovered for minimum 1 quarter + GST
term deposit fncludlt18 third ST
Party Deposits of our Bank

1.6 Letter of Comfort Normal charges as per the rates applicable for Financial Bank Normal charges as per the rates applicable for Financial Bank
Guarantee Guarantee

1.7 Refund of Guarantee Covered In Rule Governing the Service Charg,:s Cov,ered In Rule Governing Lhe Service Charges
commission on guarantees Note:lf concession Is approved at the time of the supply of
tendered for cancellation service and transaction value Is net of discount, GST needs to be
before the expiry date patd only on the transaction value. If concession Is subsequently
given ,GST already paid shOuld not be refunded.

~ ~ ~~ >1",.""'.\',
.....•..

9
 2 Inland Letter of Credit
2.1 LC opening charges. Usance U!iance charges : 2.~IO%p.i!. for the usance period fOf compi";"te Usance charges: 2.40% p.a. for the usanc~ period for complete month or
Charge month or part thereof. In case of sight bHls I usance for less than part thereof. (n"case of sight bills I usance for le!,sthan 1 month, minimum 1
1 month, minimum 1 month cllarge @ 0.20% minimum RS.750 + month charge@O,20% minimum RS.750 + GST
ST

2.2. LC Opening charges -
Commitment charge should be
levled for the period of liability
(from the date of opening of
credit to the last dill of
2.3 Extensfon of period
Commitment charges for the period of validity of LC : 1.20% p.E.. Commitment charges for the period of validity of LC: 1.20% p.a. with a
wtth a minimum period of 1 month or part thereof + ST mInimum period of 1 month or part thereof + GST
,----,- As applicable for LC issuing as per usance and commitment charge
As applicable for LC lssulng as per usance anq commitment. charge
on prorata basis (Point 2.1 B:2:2) Minimum Rs~75d '.' ST . on prorata basis (Point 2.1 tt 2.2) MInimum Rs.750 + GST

500,00 75.00 575.00 500.00 90_00 590.00

2-4 Other amendments to LC (Per
lIlIJlillJ AS applicable for LC issuing on prorata basis for the amount
As appl1cable for LC issulng on prorata basis for the amoll~t
2.5 Increase in amount of credit
increased above original amount, minimum ~. 75P+ST l,increased above original amount, minImum RS.750 + GST
I

Same as per LC Opening charges at the time of opening of Same as per LC Opening charges at the tlme of opening of revolving
2.6 Revolving LC
revolving LC and thereafter on each reinstatement on the amollnt LC and thereafter on each reinstatement on the amount of
of reinstatement, period of reinstatement and usance period of Ieinstatement, perlod of reinstatement and usance period of Bills as
Bills as per LC Opening charges, Minimum Rs.750 + ST ix'r LC Opening charges. Minimum RS.750 + GST

750.00 862.50 750 135.00 885.00

10
 575.00 500 90.00 590.00
2.8 Advising of amendments (Per 500.00 75.00
amendment'
As annllcable to LC ooenln .chan;~es As ann[!cable to LC D""ninR charees
2.9 Confirmation of LC
150.00 1150.00 1000.00 180.00 1180.00
2.10 Transferable LC - Per Transfer 1000.00
I
On all LCs established by other banks calling for usance drafts to On all LCs established by other banks caUlng for"usance drafts to be
2.11 Acceptance commlss1on
be drawn on &. accepted by our Bank~an acceptance 'commission drawn on & accepted by our Bank. an acceptance commission @

@ 2040% p.'. with a minimum of Rs. 750 • ST . 2040% p.'. wilh • minimum of Rs.750. GST

0040% minimum Rs.I000 ft maximum Rs.15000/ •• ST 0040% minimum Rs.lOoo ft maximum Rs.15OO0/ •• GST
2.12 Negoltation charges. With a
minimum plus discount at In case of sight documents Minimum Rs.750 + GST
applicable rate of interest from In case of sight documents Minimum RS.750 .' ST
the dale of negotiatfon to the
date of reimbursement.

Negotiation charges and Interest thereon are to be collected for the LC's established by other banks. In such case, collection charges
Collection of I.Cs established by
other banks - should not be levied.

In case of LC's established by our bank branches, only collection and interest as per rating should be collected for the usance period. In.
LCs est.bllshed by our bank
case or sight documents Interest for a maxt.mum period of 15 days should be collected subject to a minimum RS.750 + GST.
Branches

2.13 Guarantees on account of dlscrepanetes tn documents

0.25% minimum Rs.750 • ST 0.25% minimum RS.750 • GST
1. If payment received under
reserve Is credited 10
beneHdarv's account.
0.00 0.00 0.00 0.00 0.00 0.00
2. If payment received under
reserve at the request of the
customer Is not parted wllh -

3. When caHed upon to refund

payment made to them under
reserve
.

250.00 37.50 287.50 250.00 45.00 295.00

4. -Presentation of usance Bills
ror neeept.nee (Per Bill)
 2.14 LCsecured by 100%cash margin 25%of normal charges in respect of L/C opening charges subject 25%of normal charges in respect of LlC opening charges subject to a
I term deposit to a minimum of RS.750+ ST minimum of Rs.750 + GST
.

US Standby LC As per the charges applicable for Financial Bank Guarantee As per the charges applicable for Financial Bank Guarantee

2.16 Overdue interest Overdue interest should be charged if the bill is not paid on due Overdue interest should be charged if the bill is not paid on due
(This Is applicable to demand I d.te. date.
usance bills negotiated under lC
opened by the branches. The
reason fOf the same is that In
case of any default, the Bank,
which has opened the LC would
be liable to honour the
commitment under the LC, The
position where the LC is opened
by another branch of the
negotiating bank or by a branch
of a bank other than the
negotiating bank, does not
affect the position of the
negotiating bank I branch)
2.17 Attestation of commercial At the thlle of negotiation - Nil At the time of negotiation. Nil
invoice Subsequent occasion . Rs.10~+ ST Subsequent occasion. RS.1 00 + GST

2.18 Out of pocket expenses All out of pocket expenses such as postages, teLegrams, teLexes, AU out of pocket expenses .suchas postages, tclexes,shaU be
cables shall be collected from the, beneficiary unless otherwise collected from the beneficiary unless otherwise specified.
specified.
2.19 Charges of authorised signatory .500,00 75.00 575,00 500,00 90.00 590.00
including reconstitution of
account IPer charae'
2.20 Redemption of securttles(other Actual expo + Rs.2501. + ST Actual expenditure + RS.2501. + GST
than loan against deposit)
2.21 Transmitting of Inland LC
through SFMS(For each 100.00 15.00 115.00 100,00 18.00 iI8.00
completed LC). (Ascharged by
Member Banks)
'0../;%...<:!,u ~ o/;-~

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,
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12
2.U Non-payment and 110n- 0.20% of bill amount .Minlmum Rs500+ST 0.20 % of bill amount. Minimum Rs. 500/- + GST
acceptance of bfHs on
presentation I on due date

3 Documentation Char.es - Also a ,nllcable on adhoc II'!'Jt:;fslngle ~ransactton limIts IExciudin. Stama dutvl
Less than Rs.2 lacs NIL Nil Nil Nil NIL Nil
Rs.2.00 tacs to 10.00 lacs 1250.00 187.50 1437.50 1250.00 225.00 1 475.00
IANw" R< ,nno I.r< tn "no lor< 'Gno 00 >075.00 AGn no '050 nn
375.00
Above RS.25 lacs to RS.1.00 crore 5000.00 750.00 5750.00 5000.00 900.00 5,900.00

Above. RS.l.00 crore to 0.10% subject to maximum 20000/. + ST 0.10% subject to maximum 20000/. + GST
RS.l0.00crore
Above Rs.1O.00crore 0.02% subject to maximum Rs. 35000/. + ST 0.02% subject to maximum Rs. 35000/. + GST
(Other than actual expenditure, if any a Stamp duty:!- (Other than actual expenditure, If any a Stama duty.)
..
3.1 No documentation charges: a. Loan against deposits. a. Loan against deposits.
b. Retail Lending Schemes (Unless otherwise specified in the b. Retail Lending Schemes (Unless otherwise specifled in the
scheme) scheme)
c. Crop loans upto RS.3 lacs c. Crop loans upto Rs.3 lacs
d. Gold toans upto RS.20 lacs for agriculture 1 other than d. Gold loans upto RS.20 lacs for agriculture lather than agriculture
agriculture purpose purpose
e. Loan to SHG/JLG e. Loan to SHGI JI.G

3.2 Concesslonal documentation 25% of normal docum:mtatlon charges + ST on 25% of normal documentation charges + GST on
charges: a. Advances against Government Securities. UTI/Mutual fund B.Advances against Government Securities, UTI/Mutual Fund Units,
Units, NSCs, KVPs, IVPs, RIBs, IMOs, Life Insurance Policy. NSCs, KVPs, IVPs, RIBs, IMDs, Life Insurance Policy.
b. Agricultural advances b. Agricultural advances
c. Gold loan above RS.20Lacs for Agriculture Purpose. c. Gold loan above RS.20Lacs for Agriculture Purpose.
d. Bank Guarantees 1 Letter of Credit backed by 100% Cash I fOR d. Bank Guarantees 1 Letter of Credit backed by 100% Cash 1 fOR
Y"~~ Margin. Margin," .

,~~ •..,;~
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13
4 Insoeetlon Char.es on advance araoosals (Per visIt I Nil Nil
Nil Nil Nil
Uoto Rs.2.00Laes Nil
- 500.00 75.00 575.00 500.00 90.00 590.00
Above RS.2.00 lacs to 25.00 lacs 180.00 1180.00
150.00 -1150:00 1000.00
Above RS.25 lacs to Rs.1.00 crore 1000.00
360.00 2360.00
Above RS.1.00 crore lo 2000.00 300.00 2300.00
5750.00
2000.00
5000.00
- 900.00 5900.00
. 5000.00 750.00
Above Rs.10.00crore
a. However J over and above these charges out .of pocket expenses wilt be rec9vered on actual incurred basis.
b. No Inspection charges on advances under Retail Lending Scheme (Unless otherwise specified In the scheme), on crop loans (UGC I
KCC) upto RS.3 lacs and Gold Loan upto Rs.20Lacs for agricuLture and non-agrtculture purpose .
.

5 EquItable Mortgage Charge 2500.00

.
450.00 2950.00
2500.00 375.00 2875.00
Upto Rs.l crore 5000.00 900.00 5900.00
5000.00 750.00 5750"00
Above RS.1 crare to RS.5 crore 10000.00 1800.00 11800.00
10000.00 1500.00 11500.00
Above Rs.5 crares Covered tn RuLe Governing the Service Charges.
Covered In RuLe Governing the Service Charges.

00.

Above charges are per instance and applicable for a maximum of 5

Above charges are per instance and appllcable for a maximum of 5
mortgages only. Beyond 5 mortgages, Rs 1000/.+GST per mortgage
mortgages only. 8eyond 5 mortgages. Rs 10001. per mortgOige to
to be recovered. The aforesaid EMcharges will be applicable for all
be recovered. The aforesaid EMcharges will be applicable for all
type of mortgages created by the Bank other than for retaflloans
type of mortgages created by the Bank other than for retail loans
and loan upto RS.3Lacs under agriculture unless otherwise specified.
and loan upto RS.3Lacs under agriculture unless otherwise

6 Regl,tratlon of Equitable
Mortgage with Central Registry

For credit facility upto Rs.5 lacs 50.00 9.00 59.00

50.00 7.50 57.50
.-
For credit facility more thim . 100.00 18.00 118.00
100.00 15.00 115.00
~'~1s~
ii1£.*£ ~
til ~
~.>5'
\I~
~

~I~~ ~
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.~ ~
7

8
Satisfaction of Equitable
Mortgage with Central Registry
Lead Bank Charaes (FB +NFBI
0
I
0
I
0 0
I 0
I .
0

Upto RS.50 crores 0.25% maximum RS.25 lacs + ST 0.25% maximum RS.25 lacs + GST
Above Rs.50 crores 0.15% maximum RS.25 lacs + ST 0.15% maximum RS.25 lacs + GST
Covered 1n Rule GovE!rnlng the Serv1ce Charges. Covered In Ruh! Governing the Service Charges

9 Holding of consortium meeting NIL (Normal lead bank charges to be collected) NIL (Normal lead bank charges to be collected)

10 Project Appraisal Charges Upto RS.1.00crores: Same as Inspection charges + 51 Upto RS.1.00crores: Same as inspection charges + GST
(Technical Inspection Charges - Above Rs.l.00crom: Above RS.1.00crore:
Inhuuse) . Project Finance: . Project Finance:
• For own Use: 0.10% of New Term Loan + ST • For own use: 0.10% of New Term Loan + GST
• For sharing with customerlother lender: Additional 0.10% of flew • For sharing with customerlother lender: Additional 0.10% of New
Term loan + 5T Term Loan + GST
(Subject to maximum HS.5.00lacs + 5T) (Subject to maximum RS.5.00Lacs + GST)
. Other than Project Finance: Same as inspection charges + ST . Other than Project Finance: Same as inspection charges + GST
Rules: Rules:
a. In case TEV report from empanelled tpsp of our a. In case TEV report from empanelled TPSP of our bank/Consortium
bank/Consortium member bank Is obtained, inspection charges as member bank is obtained, inspection charges as per Point 4 above is
per Point 4 above is to be recovered for Technical Inspection. to be recovered for Technical Inspection.
b. Technical Inspection charges are to be recovered on completion b. Technical inspection charges are to be recovered on completion
of documentation. of documentation.
c. Out of p?cket expenses are to be reimbursed to the Bank. c. Out of pocket expenses are to be reimbursed to the Bank.

15
11.1 Issuance of Solvenc, Certificate. CharoesDer certificate
285.00 250.00 45.00 295.00
lJoto RS.1lacs 250.00 35.00
1140.00 1000.00 180.00 1180.00
Above Rs.1 lacs. 10 lacs 1000.00 140.00
5700.00 5000.00 900.00 5900.00
Above Rs.10 lacs - 1 crore .5000.00 700.00
11400.00 10000.00 1800.00 11800.00
Above 1 crore . 5 crares 10000.00 1400.00
28500.00 25000.00 4500.00 29500.00
Above RS.5 crore 25000.00 3500.00
• Rs.5/- per Rs.1000/~or a part thereof with a minimum of RS.100/.
• RS.5f- per RS.1000/. or a part ther~of with'a mlnlmurnof
11.2 Capability C~rtiflcate and maxlmLlm of RS.1000f - per certlf1cate .;.GST
RS.l00/- and maximum of Rs.1000/- per' certificate. + ST
• Additional capabHlly certificate in respect of same Student for
• Additional capability certificate in respect of same Student for
applying to other Universities I same University within 12 month
applying to other Universities I same University within 12 month
from the issue of original capability certiHcate: Rs.100/~ per
from the issue of original capability certificate: RS.l00/. per.
certificate + GST
cettlflcate + ST

12 Issuance of any other

certlftcate for business
purpose. (No Dues, Ba'ance
confirmation, Maintenance of
Account, NOC for release of
security in case of sate of flat
units under real eGSTate
project etc. Cef"tiflcate on
behalf of our clients as weH.as ,
clients referred by other banks
(other than fOf govt. sponsored
schemes). Charges are per
certificate
143.75 125.00
.
22.50 147.50
lZ5.00 18.75
lZ.1 Loan upto RS.l0Lacs 45.00 295.00
250.00 37.50 287.50 250.00
12.2 Loan above Rs.10lacs to

- RS.100lacs
12.3 loan above Rs.100Lacs to 500.00 75.00 575.00 500.00 90.00 590.00

~: .

'j'""",~~ '%'l
ve RS.10.00crore 1000.00 150.00 1150.00 1000.00 180.00
- 1180.00

(:(qq~~.)~
&'
.
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A

16
 - -
a. The certificate should be for business purpose.
a. The certificate should be for business purpose.
b. The borrowers under the Government schemes are exempted b. The borrowers under the Government schemes are exempted
from the levy of charges on issuance of 'No due cert1ficate' . from the levy of charges on issuance of 'No due certificate' .
c. No service charges should be levied on the balance confirmation c. No service charges should be levied on the balance confirmation
certificate tssued in borrowal account at the end of the lrear. certificate issued in borrowal account at the end of the year.

115.00 100.00 18.00 118.00

.13 Marking of I lifting of lien on 100.00 15.00
N5C1RBI Bonds/KVP IIVP
Assignment of Lie Policy (Per
account\ 90.00 590.00
500.00 75.00 575.00 500.00
14 Markingof I lifting of lien with
RTOI revenue authority (Per
account\ No charges on Retail Lending schemes. {Unless otherwise specified in
No charges on Retail Lending schemes. {Unless otherwise specified
in the schemel the scheme}
15 TUF subsldv application Drocess!n. fee 1000.00 180.00 I 1,180.00
Upto RS.1 crore I 1000.00 I 150.00 I 1150.00 I
I 2500.00 450,00 I 2950.00
I 2500.00 I 375.00 I 2875.00
Above Rs.1 crare
16 Charoes for sUPp'!y'!nocoml of dDcument 500.00 90.00 590.00
Upto Rs.l.00 crore 500.00 75.00 575.00
(Other than Govt. Spenser
Schems and P.S. upto Rs.25000/. 1,180.00
150.00 1150.00 1000.00 180.00
Over RS.l.00 crare 1000.00
Nil Nil
Govt. Sponser Schemes and P.S.
l'IOtoD. -'"000/.
Out of pocket exepnse~ito be recovered separately oth~f than for Out of pocket exepnses to be recovered separately other than for
Govt. Sponser ScherrlS!lnd Priority Sector upto Rs.25000/.1 Govt. Sponser Schem' and. Priority Sector upto Rs.25000/.)

17 Services Char~es for nrovldlno credit "nlnlon lnclu!!!!!!l!ntroductlon

When no credit limit availed 500.00 75.00 575.00 500.00 90.00 590.00
from us.
When credit limits are availed 1000.00 150.00 1150.00 1000.00 180.00 1,180.00
from us
18 ROC registra tlon/lT1odiii~atton 500.00 75.00 575.00 500.00 90.00 590.00
Isatisfaction chanzes
Actual charaes to be recovere~d separately
. -~_.,._-~. Actual charges to be recovered separatel'L

17
 ~-~.-

19 Search Reoort 500.00 I 75.00 I 575.00 500.00 I 90.00 I 590.00

Actual c:hanle5 to be recovered senaratelv Actual char",es to be recovered seoaratelv
of 500.00 75.00 575.00
- 500.00 90.00 590.00
20 Registration of power
attornev IFor each POAI ..
21 CDRAle Debt Involved Exl.tlna Revised GST Total
Uoto R•• l00 cLore.
One time fee for referring 500,000.00 75,000.00 575,000.0(' 500,000.00 90,000.00 590,000.00
Inst.lRI) I
I
for Mon. Inst. 200000.00 30000.00 230jOOO.OQi 200000.00 36000.00 236000.00
for TRABank 500 000.00 75,000.00 575000.00i 500,000.00 90000.00 590000.00
Rs. 101 crs to Rs.500 CfS
One time fee for referring 1,500,000.00 225,000.00 1,725,000.00 1,500,000.00 270,000.00 1,770,000.00
Inst.eRll
for Mon. Inst. 500000.00 75000.00. 575000.00 500000.00 90000.00 590000.00
750000.00 112 500.00 . B62 500.0U 750,000.00 135000.00 BB5000.00
for TRABank
.
Rs.501 crs to Rs.l000 crs.
5,000,000.00 750,000.00 5,750,000.00 5,000,000.00 900,000.00 5,900,000.00
One time fee for referring
I",URIl
1 000 000.00 150000.00 1 150000.00 1 000,000.00 lBO000.00 1 180000,00
for Mon: Inst.
1.000 000.00 150000.00 1 150 DOO.OO 1 000000.00 180.000.00 l1BO 000.00
for TRABank
Above RS.l000 crs
One time fee for referring 10,000,000.00 1,500,000.00 11,500,000.00 10,000,000.00 1,BOO,000.00 11,800,000.00
lnst.I Ril
for Mon. Inst. 1 500 000.00 225000.00 1,725,000.0(' 1,500,000.00 270000.00 1 770000.00
for TRABank 2.000 000.00 300000.00 h300,OOO.qf' 2000000.00 360,000.00 2.360000.00
MI fee If more than 5 CDRlenders
Unto Rs.100 crores 300,000.00 45000.00 345,000.00 300000.00 54000.00 354 000.00
Rs.101 crs to RS.500 crs 750000.00 112 500.00 862,500.00. 750,000.00 135 000.00 885 000.00
for MI Bank 1f Illore than 10
CDRlenders
RS.501 crs to Rs.1000 crs 1,500,000.000 225000.00 1,725,000.06 1,500,000.00 270 000.00 1 770000.00
Above Rs.1000 crs 2 250 000.00. 337 500.00 2 587,500.0" 2,250,000.00 405000.00 2.655000.00

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18
22
Pulling of report from portal of
Credit Information Companies
including CIBILon the .
requeGST of the cuGSTQrner
Consumer Reoort 50.00 7.50 57.50 50.00 9.00 59.00
Commerclal Report 500.00 75.00 575.00 500.00 90.00 590.00
23 l'iilllng of report from porta, 0'
Credit Information Companies
Including CIBll for Credit
Appraisal
Consumer Report 50.00 7.50 57.50 50.00 9.00 59.00
Commercial Report 500.00 75.00 575.00 500.00 90.00 590.00
Applicable only on a.vailment of credit facilities Of above
Rs.25Lacs (Not applicable for retail advance). The maximum Applicable only on avaHment of credit facilities of above RS.25Lacs
. aggregate charge for generating CIC reports should not exceed (Not appUcable for retail advance). The maximum aggregate charge
RS.5000/- + ST per borrower per annnum. Charge should not be for generating CIC reports should not exceed RS.5000/- + GST per
recovered for obtaining multiple reports of same entity during borrower per annnum. Charge should not be recovered for. obtaining
partkular review Irenewal. multiple reports of same entity during particular review/renewal.
Upto Rs.S crore - RS.llacs.•.GST
24 Fees for opening I operat1ng Upto Rs.S crare - RS.llacs + $T
Above Rs.S crore upto RS.l0 cr. Rs.2lacs +St Above Rs.5 crare upto RS.l0 cr - RS.21acs + G5T
Escrow I TRA (Trust & Retention
a/c) accounts Above Rs.lO crore - RS.51acs + ST Above Rs.l0 crore - Rs.5 lacs + GST
(In respect of CDR accounts, charges to be as per CD~guidelines) (In respect of CDR accounts, charges to be as per CDR guidelines)
.

GST@ 18.00% on Basic charges from 01.07.2017

19
'.,
22
, Pulling of report
Credit Information Compan1es
from portal of

• •
I
'ncludlng CIBll on the
requeGST of the cuGSTorner
Consumer Report 50.00 7.50 57.50 50.00 9.00 59.00
Commercial Report 500.00 75.00 575.00 500.00 90.00 590.00
23 U'!"'B or report "om porta, OT
Credit InformaHon Companies
IncludlnB CIBll for Credit '.
Appraisal
Consumer Report 50.00 7.50 57.50 50.00 9.00 59.00
Commercial Report 500.00 75.00 575.00 500.00 90.00 590.00
ApPllcaDle omy on avallment of credit fac I!ttes or aoove
RS.25lacs (Not applicable for retail advance). The maxfmun~ Applicable only on avaHment of credit facilities of above RS.25Lacs
aggregate charge for generating CIC reports should not exceed (Not applicable for retail advance). The maximum aggregate charge
RS.5OO0/. + 5T per borrower per annnum'. Charge should not be for generating cle reports should not exceed Rs,SOOO/- + GST per
recovered for obtaining multiple reports of same entity during borrower per annnum. Charge should not be recovered for. obtaining
particular review/renewal. . multlple reports of same entity during particular rev1ew/renewal.
24 Fees for opening I operating Upto Rs.5 Cfore . Rs,llacs + ~T Upto Rs,S crore - Rs.~lacs + GST
Escrow I fRA (trust & Retention Above Rs,S clore upto Rs,lO cr - RS.2lacs + S1 " Above H5.5 aore upto Rs.l0 cr - Rs.2lacs + GST
a/c) accounts Above RS.l0 crore - Rs.5lacs • S1 Above Rs.lO crore - RS.5lacs' GST
(In respect of CDR accounts, charses to be as per CD~guIdelines) (In respect of CDR accounts, charges to be as per CDR guidelines)
,
GST@ 18.0D% on Basic charges from 01.07.2017

19
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 E@ Union Sank
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Service charges on Advances

Annexure - II
PART.C

( RULES GOVERNING THE SERVICE CHARGES)

1. Processing charges on Working Capital/ Dne time upfront fees on Term Loan

1.1 One time upfront fees on Term Loan is to be recovered based on aggregate
amount of Term loan/s sanctioned in a single proposal. For example, in a
proposal for sanction of 5 TLs of RS.2Lacs each, upfront fees will be as
applicable for aggregate term loan of RS.10.00Lacs. (The same modality will be
applicable for processing charges for annual review of term loan.)

1.2 Processing charges for term loan to trader is also applicable for accounts
covered under 'Union Trade scheme', 'Union Trade Plus', 'Union Turnover',
term loan to doctors is also applicable for 'Union Health Scheme' and term loan
against lease rental is for 'Union Rent Scheme'

1.3 The cycle for recovery of processing charges to commence from date of
sanction irrespective. of revalidation of sanction, if any at later date.

1.4 No processing charges on restn-!cturing of the (a) Crop Loans, (b)any other
agriculture loans, (c) Education loans, (d) Micro Enterprises and (e) Small
Enterprise loans upto Rs5,OOlacs.

1.5 Flat processing charge of Rs.500/+GSTon restructuring per housing loan.

1.6 FITL & WCTLare Term Loan facility and applicable upfront fees is to be
recovered thereof.

2. Processing charges in review/renewal ot limits

2.1. If enhancement is subsequent to renewal of original limit: Normal charges

should be levied on pro-rata basis for the relevant period so as to coincide with
expirydate of original limit.

2.2 In case the facility is utilised during the intermittent period i.e. from the expiry
of original limits till its renewal (or cancellation/abeyance, as the case may
be), processing charges at prescribed rates on pro-rata basis should be levied.

2.3 Whenever short. review is undertaken, processing charges from the expiry of
original limit till short review should be recovered at the prescribed rates on
pro-rata basis.

2.4 In case the facility is kept under abeyance during the intermittent period or
period stipulated by the sanctioning authority, processing charges need not be
levied.
 ({lIunion B<!,fJij,
Service .charges on Advances

3. Processing charges on Review of Term Loan

3.1 Processing charges on Term Loan at the time of review will be recovered based
on outstanding liability plus imavailed limit (If disbursement is still to be
completed) in a particular sanction.

3.2 FITL &. WCTL are Term Loan facility and applicable processing charge!s for
review of Term Loan is to be recovered thereof.

3.3 The"applicable processing charge!s is for a period of 12 months. In case review

of term loan/s is for less than 12 months, pro-rata charge!s is to be recovered.
Similarly, In case next due date for review of term loan is above 12 months,
pro-rata charges is to be recovered for period over and above 12 months.
Further, processing charges are to be recovered on pro-rata basis for
interim/lapsed period i.e. period between due date of review" and actual
review date, in case facility is utilised during the period.

4. Pre-payment penalty for pre-maturity closure of Term Loan

4.1 In respect of Term Loans both priority and non-priority one-time pre-payment
penalty will be imposed @ 1%+GSTon the outstanding liability wherever the
borrower (other than exemption mentioned hereinj makes request for transfer
of his loan account to other Banks/Fls as a general rule. "

4.2" However, whenever waiver of pre-payment penalty for pre-closure of Term

Loan is expressly approved by the Sanctioning Authority, no pre-payment
penalty will be levied.

". 3 Wherever the prepayment is from internal accru"L. 'cwn sources andlor
interest rate reset date, no pre payment penalty may be levied.

4.4 Pre payment is not applicable for working capital facilities.

4.5 Pre-payment penalty will not be levied for Fixed Rate loans upto Rs.50.00Lacs
and floating rate loans extended to MSEborrowers.

4.6 Also, there shall 'be no levy of foreclosure charges! pre-payment penalty on all
floating rate term loans sanctioned to individual borrowers.

4.7 For Retail loans, the pre-payment penalty (other than exemption mentioned
herein) is spedfied in the indi\~dual schemes.

4.8 In other cases, delegation for waiver of pre-payment penalty would be as per
Policy on Delegation of loaning powers.

5. Commitment charges on un-availed / or partly availed sanctioned limits.

5.1

Page 21 of 27
 cr"'"H Union Bamk
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service charges on Advances

compelled to pass on the burden of additional. capital charge to the borrowers

for providingcapital on unavailed I partly availed portion of the credit limits.

5.2 The commitment charges are to be levied on all borrowal accounts where total
limits (fund based working capital plus non-fund based plus term loan) is Rs.5
crores andabove.

5.3 Operational guidelines:

5.3.1 WorkingCapital:
5.3.1.1 Commitment charge would be made applicable wherein working capital limit
remain unutilized in excess of 30%of the sanctioned limits.

5.3.1.2 Commitmentcharge is to be recovered on unutilized portion of working capital

limits in excess of 30%of sanctioned limits.

5.3.1.3 The unutilized portion of working capital limit' shall be ascertained by the
branches by calculating the average utilization during the quarter and
'comparingthe same with the sanctioned limits.

5.3.2 Term Loan:

5.3.2.1 In case of term loans, the commitment charges should be levied on undrawn
,portionwith referen~e to draw-down schedule.

5.3.2.2 Undrawnportion shall be arrived at after deducting actual drawl of term loan
in each quarter of the financial year from drawable portion of term loan for the
financial year in terms of the draw down schedule for the account.

5.3.2.3 It should be ensured that a draw.down schedule is stipulated in every Term

Loan of Rs.5 crares 8: above and the disbursement is to be monitored as per
draw-down schedule. The same hould be stipulateid at the time of sanction
itself and should invariably fo a part of term loan assessment in the
ExecutiVeSummary. The draw- wn schedules so stipulated should also be fed
in the system while opening Ter Loan accounts in the Finacle. '

5.3.2.4 Commitment charge on Term oan to be applicable on delayed drawdown

beyond 2 months.
5.3.3 The commitment charges will become applicable from the date of 1"
disbursement.

5.3.4 Operational guidelines for calcu ting commitment charges for non-fund based
limit is same as in case of fund sed workingcapital limits.

5.3.5 In the case of accounts under co sortium I multiple arrangements, our stand on
commitment charges should be xplained to other Banks so that a consensus is
evolved on levy of commitment harges.

5.3.6

Page 22 of 27
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of/ndia

'Service cttarges on Advances

5.4 Exemptions from levying commitment charges:

Working capital limits sanctioned to sick I weak units irrespective of amount.

5.4.1
Credit limits granted to Government owned concerns both State and Central
5.4.2
Government.
Limits sanctioned with Unconditionally Cancellable Clause as an integral part of
5.4.3
terms of sanction. "

Usance Bills Discounting under Letter of Credit (UBD-LC)limit.

5.4.4
Retail lending schemes (Unless otherwise specifically mentioned in the
5.4.5
scheme.)
The delegation for waiver of commitment charges would be as per Policy on
5.5
"Delegation-of Loaning Powers.

Charges on interchangeability of limits I sanction of sub limits "

6.
Accounts where interchangeability is allowed "between Fund Based & Non-Fund
6.1
Based limits or sub-limits are allowed with the main limit at the time of
sanction I renewal I modification, processing charges shall be charged as per
FB credit limits where FB limits are higher.

In cases where NFBlimits are higher, processing charges applicable for FB limits
6.2 should be collected upto FB limits and for the balance portion processing
charges applicable for NFBlimits should be collected.

Recovery of processing charges in miscellaneous request

7.
Processing charges for miscellaneous request is "not applicable for the requestls
7.1
forming integral part of the regular proposal.

The processing charges on miscellaneous requests are to be recovered on the

" 7.2
basis of sanctioned limit.

Miscellaneous request charges are not applicable on retail loans.

7.3
Service Charges waived for Retail Lending Schemes (Unless otherwise
8.
specifically mentioned in the scheme.)

8.1

8.2
" 8.3
8.4 reports from portal of Credit Information
8.5

Page 23 of 27
 t lil
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UnioN! Bank
:)1Inri/a

Service charges"on Advances

All other charges such as overdue, prepayment, takeover, CERSAI,processing

fees etc witl be as applicable for respective retail lending scheme. .

9. Commission on Bank Guarantee

9.1 Commission on Expired Guarantees

9.1.1 Guarantees expired but not reversed form part of total outstanding contingent
liability and attract capital charge on entire outstanding guarantees including
guarantees expired. Hence, commission on guarantees should be charged till
the date of guarantee reversal. However, Commission on expired bank
guarantee pending reversal need not be charged in case customer supports the
branch to comply with the procedure for reversal of expired guarantee as per
Guarantee& Co-acceptance Policy of the Bank.

9.2 Levy of Commission on BG Upfront-Oelegation for levying on annual/half

yearly/quarterly/monthly basis

9.2.1 Commissionon BG for entire period including action period if any, should be
recovered upfront i.e. at the time of issuance of the guarantee. However, At
times, guarantees of high value are issued for a longer period (more than one
year).

9.2.2 The commission on such guarantee for entire period works out to be substantial
and affect the cash flow of the party (on whose behalf guarantee issued) if paid
up front. .

9.2.3 The party therefore requests for levy of commission on yearly basis, even
sometimes on monthly/quarterly/half yearly basis where guarantee is of very
high ,value. In such circumstances, delegation is vested as per the Bank's policy
on delegation of loaning powers. (At present, policy on delegation of loaning
powers is communicated as per IC No. 222-2015 dated 15.09.2015). In such'
instances, wherein commission is to be recovered on deferred basisand original
guarantee is returned for cancellation before the expiry date, commission for
'residual maturity .period subsequent to completion of approved interval (for
which charges are recovered upfront) need not be collected.

9.3 Refund of Guarantee Commission

9.3.1 If the purpose for which guarantee was issued is served and the origi nal
guarantee is returned for cancellation before the expiry date, no commission
wi II be refunded.

9.3.2 In other cases, if the purpose is not served and the original guarantee is
returned for cancellation before the expiry date, the commission will be
refunded at 50%of original rate for the unexpired period of guarantee less 3
months (excluding service tax). In other words, out of unexpired period BG
charges of 3 months will be forfeited and for the remaining unexpired period
only 50%of original commission is to be refunded.

9.3.3

Page 24 of 27
 t@ Unicm Bank
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.Service charges on Advances

by 100%tenn deposit including third Party Deposits of our Bank to be charged

and excess commissionrecovered for the residual period is to be refunded with
the permissionof RegionalOffice.

9.3.4 The period elapsed, for the purpose of refund, shall be reckoned upto the
completed month. '

9.4 Commissionon Non Fund Based Limits (BG! LC) against 100% Cash Margin I
Term Deposit
9.4.1 Whileallowingthe concessional rate the branches shouldensure the following:

a. Concurrence of the deposit holder is obtained by a separate letter for

keeping the deposit as security I margin &. no objection for appropriating
the proceeds in case of invocation without any dispute.
b. The deposit receipt is duly discharged along with letter of lien.
c. The tenure of deposit is not less than the validity of BG I LC (Unless
approvedby the sanctioning authority as per policy on delegation of loaning
powers.)

10. Documentation Charges

10'.1 The documentation charges are applicable for Fund based as well as Non.Fund
Based Credit facilities as well as ad.hoc limits I Single transaction limits
(Starn"duty is to be recovered separately).

10.2 In case documentation is undertaken on behalf of consQr:ium, overall limits '

under consortium are to be considered for arriving at applicable documentation
:\i~:-:.e:. ~Gv.rev'e=-
>. Docurnentat.iar-. cnarges are not applicable for documents.

executed by other than our bank on behalf of the consortium.

10.3 The documentation charges are to be recovered at the tlme of execution of '
seCurity/auxiliary documents and not for operational matters like issuance of'
BG/LC etc within sanctioned limit for which existing ,documents are already
obtained a valid. "

11. Equitable Mortgage Charges

11.1 Chargesfor equitable mortgage shall be collected as per total exposure.

11.2 Charges for equitable mortgage shall also be applicable to extension of

mortgage for enhancement and for substitution of title deeds.

11.3 Chargesapplicable for extension of EMrecorded in favor of other lenders also.

11.4 The EMcharges will be applicable for all type of mortgages created by the Bank
other than for retail loans and loan upto Rs.3Lacs under agriculture unless
otherwise specified.

Page 25 of 27
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Union BankO(I"ctit.

Service charges on Advances

12. LeadBankCharges

12.1 FundbaSedworking capital limit, Term Loan and Non Fund Based Limitsto be
clubbedfor arriving at total Lead Bank fees payable.

12.2 However,lead Bank Chargesare applicable on Term Loansupto DCCOonlyand

no such charges would be levied subsequently on reView / renewal of Term
Loans.In case any enhancement / restructuring is involved subsequently, Lead
Bankcharges will be applicable only for the enhanced amount or restructured
amount.

12.3 Leadbank charges are to be recovered from the date of becoming leader of the
consortium.

12.4 The lead bank charges are yearly charges and to be recovered on pro-rata basis
in case applicable period is less than 12 months.

12.5 ApplicableLead bank charges are to be recovered based on total exposure of

the consortium. However, in case there are multiple consortiums, then lead
bank chargeS, if any for each consortium are to be recovered separately as per
norms.

13. The serVice charges are to be recovered on 'all advance related services
,including commitment charges, pre-payment charges etc unless otherwise
specified. ,Actual out of pocket expenses are to be recover"d in all cases,
except where specifically exempted as per .nonns.

14. If concession is approved at the time of the supply of service and transaction
vatue is net of discount, GSTneeds to be paid only on the transaction value. If
concessionis subsequently given ,GSTalready paid should not be refunded.

i 5. The circulars referred for updating of service charges guidelines is endosed as

Annexure-III.

, Page 26 of 27
 f'f7J Unior. Bank,
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Service charges on 'Advances

Annexure-III
PART-D

LIST OF CIRCULARS

S. No. Circular Number Date Subject

1. IC 770-2.017 17.02..2.017 Union Mortgage Plus Scheme(Modification}

2. iC 477 - 2016 06.06.2.016 Revised Code of Bank's Commitment to Micro

and Small Enterprises 2.015 by BCSBI

3. iC483-2016 14.06.2016 , Union Personal

4. IC 741-2.017 19.01.2017 Loan Policy 2016-17

5. IC 379-2016 17.02.2016 Revision in CERSAI Charges

6. IC 742.. 2.017 10.02..2016 Pol icy on Guarantee ft Co-acceptance 2.016-17

7. 1062. - 2.016 05.02..2.016 Master Circular - Union Mile

8. IC 78-2.015 15.05,2.015 Service charges on Retail Lending scheme

9.
.
IC 1012.4 111.12.2.014 I Modification
Advances
in Service Charges pertaining to .

10. IC 10110 2.8.11.2014 Service charges for issuance of InLand Letter

of Credit through SFM5
,,
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b 2.7.09.2014 I Master Circular - Union Mortgage
n. IIC 9859 06.03.2.014 ! Union Cash

13. IIC 9600 . 04.06.2013 Union Personal

i .
14 .. IC 9359 02..08.2012 Modification in service charges pertaining to
Advances

15. IC 932.5 03.07.2.012 Recovery of Service charges on advance

related services
I I
16. IC 852.4 24.12.2.009 Modification in Service Charges'
.

,I 17. IC 8047 17 .07.2.008 I Commitment Charges

18. IC 7837 30.11.2007 Commitment charges on unavailed or partly

availed,Limits

19. IC 6338 29.12.2001 ReVision in SerVice charges - Clarification

2.0. IC 6255 09.05.2.001 Union Health

Page 27 of 27