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Particulars

Loan Amount 50,000,000.00


Rate of Interest 14.00%
Upfront Fees (Flat plus applicable Tax) 1.00%
Out of Pocket 50,000.00
TDS 22.66%
Calculation
Interest paid to Bank @ 14% 7,000,000.00
TDS i.e Tax on interest to be deducted
Total Interest to be paid 7,000,000.00
Out of Pocket Expenses 50,000.00
Upfront Fees @ 1% 500,000.00
Service Tax @ 10.3% 51,500.00
551,500.00

Total Cost of Loan for 1st year 7,601,500.00


% of cost of Loan 15.20

Loan Amount 50,000,000


Rate of Interest 14.00%
Upfront Fees (Flat plus applicable Tax) 1.00%
Out of Pocket 50,000.00
TDS 22.66%

Interest paid to Bank @ 14% 7,000,000.00


TDS i.e Tax on interest to be deducted
Total Interest to be paid 7,000,000.00
Out of Pocket Expenses 50,000.00
Upfront Fees @ 1% 500,000.00
TDS i.e Tax on interest to be deducted 51,500.00
551,500.00

Total Cost of Loan for 1st year 7,601,500.00


Less :Taxshield on total interest out-go @34% 2,584,510.00
Internal cost of loal 5,016,990.00
Effective cost on loan 10.03
All amount in Lakhs

Principal Amount 500


Interest rate 14%
Upfront fees 1%

Quarter OpeningBal Interest Principal Closing Loan Bal


1st Quarter (year 1) 500.00 17.50 62.50 437.50
2nd Quarter (year 1) 437.50 15.31 62.50 375.00
3rd Quarter (year1) 375.00 13.13 62.50 312.50
4th Quarter (year 1) 312.50 10.94 62.50 250.00
1st Quarter (year 2) 250.00 8.75 62.50 187.50
2nd Quarter (year 2) 187.50 6.56 62.50 125.00
3rd Quarter (year2) 125.00 4.38 62.50 62.50
4th Quarter (year 2) 62.50 2.19 62.50 0.00

For 1 st year For 2 st year


Total Interest for 1st Year 56.88 21.88
Average Loan Outstanding for 1st year 406.25 156.25
Interear rate 14 14

Without
Interest Rate Calculation Taxshield With Taxshield
Total Interest for 2year 78.75 78.75
Other Charges
Upfront fees @ 1% on principal Amount 5
Add: Applicable Service Tax @ 10.3% on Upfront
fees 0.52
Out of Pocket Expenses 0.500
Sub Total of Expenses 6.02 6.02
total expenses 84.77 84.77
Tax shield @ 34% 0 28.82
Net out go at the end of 2nd year 84.77 55.94
Average Loan Outstanding 281.25 281.25 281.25
30.14 19.89
Yearly Interest reat at decling Balance 15.07 9.95

Interest Calculation on Flat Rate 16.95 11.19


For One year 8.48 5.59