INTEREST RATE ON ADVANCES POLICY

METHODOLOGY

The rate of interest under each product is decided from time to time, giving due consideration to the following factors

• The cost of funds, the tenure, market liquidity etc.,
• Operating cost and maintaining the stakeholders expectations for a reasonable, market-competitive rate of return;
• Inherent credit and default risk, particularly trends with customer segments;
• Nature of lending, for example unsecured/secured, and the associated tenure;
• Nature and value of securities and collateral offered by customers.
• Risk profile of customer – professional qualification, stability in earnings and employment, financial positions, past repayment track record with us or other lenders, credit reports, customer relationship, future business potential etc.
• Industry trends – offerings by competitors.

INTEREST RATE POLICY FOR LENDING BUSINESS.

• The interest rates offered could be on fixed basis or floating / variable basis. Changes in interest rates would be decided at any periodicity, depending upon market volatility and competitor review.
• Annualized rate of interest would be intimated to the customer
• Besides normal interest, the company may levy additional charges for adhoc facilities, penal charges for any delay or default in making payments of any dues.
• The Company shall mention the penal
  charges in the loan agreement.
• Interest would be charged, and recovered on a monthly/quarterly basis or such other periodicity as may be approved by the designated authority.
• Interest rates would be intimated to the customers at the time of sanction / availing of the loan and the EMI apportionments towards interest and principal dues would be made available to the customer.
• Interest shall be deemed payable immediately on due date as communicated and no grace period for payment of interest is allowed.
• Interest changes would be prospective in effect and intimation of change of interest or other charges would be communicated to customers in a manner deemed fit, as per terms of the loan documents.
• Besides interest, other financial charges like processing fees, cheque return charges, cash handling charges, RTGS/ other remittance charges, commitment fees, charges on various other services like issuing NO DUE certificates, NOC, letters ceding charge on assets/ security, security swap & exchange charges etc. would be levied by the company wherever considered necessary. Besides the base charges, the GST and other applicable tax would be collected at applicable rates from time to time. Any revision in these charges would be with prospective effect. A suitable condition in this regard would be incorporated in the loan agreement.
• The practices followed by competitors would also be taken into consideration while deciding on interest rates / charges.
• 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 or as may be decided by the company.
• Claims for refund or waiver of such charges/penal charges / additional charges would normally not be entertained by the company and it is the sole and absolute discretion of the company to deal with such requests.