Penal charges, if levied, are a charge — not additional interest capitalised into the rate. They are disclosed up-front in the Key Fact Statement and sanction letter, applied only prospectively, and are reasonable and non-discriminatory.
Current board position: no penal interest and no penal charges are levied on the mortgage, personal and business products originated under this website. Cheque / NACH bounce costs charged by the borrower’s bank are the borrower’s. Any future schedule of penal charges will be published here before it is applied to new sanctions.
Overdue principal and interest continue to accrue ordinary contractual interest until repaid; that is interest, not a penalty.