About the doubt on the guarantee fee payable..

This query is : Resolved

Rajan (Querist)
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06 August 2012 Please reply me...

In the guarantee agreement document it is said that:
In consideration of its guaranteeing the obligations of borrower in respect of the said loan and Guarantee Agreements, the borrower undertakes to pay the Guarantor on 1st April each year a guarantee fee of 1.20% p.a. on the principal amounts of the loan withdrawn and outstanding plus the interest outstanding, on 31st March every year from time to time until the entire principal amount of the loan and the interest and other charges thereon have been repaid. Any default in the payment of prescribed guarantee fee would entail a penalty equivalent to double the rate of guarantee fee for the period of default.

Query is
1.What is the due date of payment of Guarantee fee for the F.Y.2011-12 and on which date's loan outstanding is taken for calculation of fee for the F.Y.2011-12?
2.If the payment is made on 28.03.2012 for the F.Y.2011-12, Number of days of default ........?

help me please......

Amol S Joglekar

Amol S Joglekar (Expert)
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06 August 2012 Chronologically speaking, financial year 2011-12 guarantee fee shall fall due on 1/4/2012. It will be calculated on the balance as on 31/03/2012. For 28/3/2012, there need not be any penalty. How can guarantee fee be ascertained unless the balance as on 31st March is found out.

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