Interest Rate Model and Schedule of Charges

Interest rate model


Rate of interest

The Chief Revenue Officer, Chief Risk Officer and Chief Financial Officer shall jointly have the authority to determine the interest rates to be charged for the loan products offered by the Company.

The rate of interest shall be determined based on the cost of funds, administrative costs, rates offered
by competitors, length of relationship with the customers. In addition to the cost of funds, the rate of
interest shall further be determined based on inherent credit and default risk in the products,
customer profile, past repayment track record of the customer, customer segment, market reputation,
nature and value of primary and collateral securities, external ratings of the customers , industry
trends, etc.

The Company may charge a different rate of interest for the same product and tenor availed during the same
period by different customers, depending upon considerations of any or combination of a few or all factors
listed ou in the above point. The Company charges interest rates in the range of 9% p.a. to 36% p.a. depending
on the nature of products and above mentioned parameters.

Interest rates shall be intimated to the customers at the time of sanction/ availing of the loan and the
equated installments apportionment towards interest and principal dues shall be made available to
the customer.

Annualized rate: Annualized rate of interest will be communicated to the customers.

Interest types: The loans and advances will be offered at a fixed or floating rate of interest.

Interest resets: In case of floating rate of interest, the interest rate would be reviewed and reset on
quarterly basis, subject to the approval from ALCO.

Changes in the interest rate and other charges will take effect prospectively and such change will be
intimated to the customers in the manner as may be decided by the Company.

The rate of interest and other charges would be hosted on the Company’s website and any changes
thereto shall be updated on the Company’s website from time to time.


Processing fees and other charges


Processing fees represent the general costs incurred in rendering the services to the customers.

The processing fees and other charges charged to the customers will be clearly stated in the loan

The fees/charges will vary based on the loan product, exposure limit, customer segment, and
geographical location.

Any changes in the processing fees / other charges will be taken into effect prospectively.


Penal Interest/Late payment charges


In case of any delay or default in repayment of dues, the Company may collect penal interest / late
payment charges from its customers.

The penal interest/late payment charges shall be decided by the Company from time to time and
communicated to the customers in the sanction letters and loan agreements. A list of such charges
will also be hosted on the Company’s website.


Schedule of Charges


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