Preamble: Reserve Bank of India vide its notification No. DNBS. 204 / CGM (ASR)-2009 dated January 2, 2009 and vide its Guidelines on FPC for NBFCs DNBS.CC.PD.No.266/03.10.01/2011-12 dated March 26, 2012 have directed all NBFCs to comply with following points in relation to its Interest Rate Policy.
- 1. Communicate the annualised rate of interest to the borrower along with the approach for gradation of risk and rationale for charging different rates of interest to different categories of borrowers.
- 2. Make available the rates of interest and the approach for gradation of risks on the web-site of the companies.
The Company has made the following Interest Rate Policy in accordance with RBI Directions:
- 1. Interest rate will be quoted only on annualized basis.
- 2. The rate of interest will be determined after considering cost of debt, Operation cost, risk factor, tenure, market liquidity, competition etc.
- 3. Risk Interest shall be determined by taking into account the degree of risk involved in loans under each loan.
- 4. Based on following factors like value of collateral securities offered by the customers, tenure of the loan, financial position of the customer, credit reports of the customers, stability in the earning etc. Company may charge discrete interest rate for different customers.
- 5. The Company may levy penal interest for any delay or default in making payments of any dues besides normal interest and will be mentioned bold in the loan agreement.
- 6. The interest rate for lending would be decided by the company from time to time, applying the same decision criteria as considered for fixing of interest rates.
- 7. Interest rates would be intimated to the customers at the time of the sanction/ availing of the loan and the EMI apportionments towards interest and principal dues would be made available to the customers.
- 8. Interest shall be paid on due date and Late fee shall be payable after the due date.
- 9. Besides interest, other financial charges like processing fees, cheque bouncing charges, RTCG/ other remmitance charges, and other applicable if any; will be intimated to the customer at the time of sanction of loan.
- 10. Any charges in the interest will be applicable only on prospective basis.
- 11. Decision for waiver of any of the charges or interest would normally not be entertained by the company and it is the sole and absolute discretion of the company to deal with such requests.