Interest Rate Policy

Last updated on 01 April 2022

Interest Rate Model

Interest rates offered would be on a reducing rate basis

a) Reducing Rates

At present the annualized rate of interest** to be charged to customers on a per day basis, at the time of sanctioning loans, shall be in the range as mentioned below:

Lending Assets/Sector	Range of Interest
Borrower	14% to 30%

** in exceptional circumstances, based on the risk perception, this may fall within the indicated range.

- The interest rate is charged on per day basis on the Outstanding Principal as on date. The default interest is levied post the due date is crossed.

- The interest rates charged would be agreed with the Borrower. Interest rates shall be determined from time to time by the Lender on the basis of cost of the Borrowing, operating costs, liquidity, interest rate trend and return on equity thresholds.

- Interest rates will be determined on the basis of nature and duration of loan, credit worthiness/evaluation and risk perception.

- Intimation of change of Interest would be communicated to the Borrower in a manner deemed fit, as per the terms of the loan documents. Any revision in the Interest would be with the prospective effect.

- In case of staggered disbursements, the rates of interest would be subjected to review and the same may vary according to the prevailing rate at the time of successive disbursements.

- Loan amount, annualized rate of interest, tenure of loan and the apportionment of installments will be communicated to the Borrower in the Key Fact Statement and the Facility Agreement.

- Besides normal Interest, additional interest would be levied for adhoc facilities, penal interest / default interest for any delay or default in making payments of any dues. The details of default interest charges will be mentioned in the Key Fact Statement and the Facility agreement.

- Besides interest, other financial charges like processing charges, cheque bouncing charges, pre-payment charges, RTGS/other remittance charges, commitment fees, charges on various other services like issuing no due certificates, no objection certificate, letters ceding charge on assets/ security, security swap & exchange charges etc. would be levied wherever considered necessary. Currently we don't charge any of the above charges and however, the charges are subjected to changes and in case of change, shall be communicated to the Borrower in the manner deem fit. In addition, the Goods and Services Tax and other taxes, levies or cess would be collected at applicable rates from time to time.

- Claims for refund will and shall be entertained, as the case may be, as per the Cancellation and Refund Policy. Waiver of charges / default interest / additional interest would normally not be entertained.