Interest Rate and Gradation of Risk
  • 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
  • Communicate the annualized rate of interest to the borrower along with the approach for gradation of risk and rationale for charging different rate of interest to different categories of borrowers.
  • Make available the rates of interest and the approach for gradation of risks on the web-site of the companies.
  • Rate of Interest (Discounting Charges)
The Company fixes the interest ratebased on the prevailing reference rate derived byit, risk premium and applicable spread based on the respective borrower’sinternal risk rating.

The rate of interest, other fees& charges etc., are intimated to the respective borrowers, at the time of sanction of the facility.

The rate of interest is subject to change as the situation warrants and is subject to the discretion of the management on a case to case basis.
  • Approach for Gradation of Risk
General
The decision to extenda facility and interest rate applicable are taken on a case to case basis, based on multiple risk parameters such as the type of facility, the borrower profile and repayment capacity, borrower’s other financial commitments, past repayment track record if any, the security for the loan as represented by the underlying assets, loan to value ratio, mode of payment, tenure of the loan, geography (location) of the borrower, etc. Such information is collated based on borrower inputs and field inspection by the Company officials.

To know more, our nearest Area offices may be contacted. (For area office details, please refer to Contact us section)