Interest Rate Policy

1. . Benchmark Rate of Interest of the Company will primarily be based on the following factors:
   1. a. Cost of Funds: The cost of funds varies according to market conditions. Thus, pricing of the loans is largely impacted by any change in the cost of funds.

   b. Operating Expenses

   c. Base Return on Assets

   d. ALM mismatch costs

   e. Expected return on capital employed

   f. Other overhead costs

   g. Risk premium

2. .  The final lending rate will be arrived at taking into consideration the following aspects at the customer level as well.
   1. a. Type of Loan- secured or unsecured

   b. Type of Loan Product- various loan products offered by the Company have several different and unique features. The same shall be considered while deciding the interest rates for a particular type of loan product

   c. Tenor of facility: Tenor of facility is also a key factor in deciding on the interest rate for the borrower since short and long-term funds have different cost associated to them.

   d. Perceived Industry risk and current level of rate of interest in the market for similar lending activity

   e. Quality of Security/ Collateral, if applicable

   f. Internal, External Credit Rating and Creditworthiness of the borrower

   g. Profile of Customer: Customer profile which includes their experience, educational qualifications, market reputation, business profile, financial profile, business model, group strength etc. is an important factor is deriving the interest rate for the loans.

   h. Subventions available

   i. Deviations permitted

   j. Overall customer yield: The rate of interest for the same product and tenor availed during same period by different customers need not to be standardized. It could vary for different customers depending upon consideration of any or a combination of the above factors.

3. .  Ceiling on Interest Rate: The Company will ensure that applicable rate of interest to any borrower should not exceed the maximum rate fixed for each product offered by the Company. The annualised interest rate range will be between 14% and a maximum of 39% per annum.
4. .  Additional factors to be considered:The interest rate applicable to each loan account, within the applicable range shall also be assessed on a case specific basis, based on evaluation of various factors, such as:• Structure of the deal• Risk profile of customer – professional qualification, stability in earnings and employment• Long term prospects of business with the Customer

   • Loan specific costs

   • Customer negotiations/deviations

   • Upfront charges

   • Outsourcing cost

   • Other Cost

1. . Processing fees ranging between 0% to 7%
2. . NACH bouncing charges
3. . Late payment charges
4. . Re-scheduling charges
5. . Penal Interest – Loans remaining unpaid on due dates shall be charged penal interest at such rates as mentioned in bold in the respective customer agreements
6. . Pre-payment / foreclosure charges, etc. – All loans which are pre-paid shall bear pre-payment penalty at rates mentioned in the respective customer agreements. However, there shall be no foreclosure rate/ prepayment penalty charged on floating interest rate loans sanctioned to the individual borrowers as per the Master Directions.

as mentioned in the loan agreement and the sanction letter shall be levied by the Company wherever considered necessary.

Besides these charges, stamp duty, GST tax and other cess would be collected at applicable rates from time to time, as communicated in the documentation provided. Details of all these charges will be mentioned in the loan agreement and the sanction letter.

Any revision in these charges would be have a prospective effect and will be communicated with the borrower. While deciding the charges, market practices and industry standards would also be taken into consideration. Claims for refund or waiver of charges / penal interest / additional interest would normally not be entertained by the Company and it is at the sole discretion of the Company to deal with such requests.