Epimoney Private Limited is RBI registered Non-Deposit taking Non-Banking Financial Company (NBFC) and it proposes to put its Base Rate of lending on its website. In order to ensure its standards of transparency, in conformity with the stipulations of the RBI’s directives, such interest rate policy is adopted by the Board. The policy is enumerated as under:-
Interest Rate Policy:
Reserve Bank of India Vide its Master Direction – Non-Banking Financial Company – Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016 as amended from time to time, has directed that the Board of each NBFC shall approve an Interest rate model for the Company, taking in to account relevant factors such as cost of funds, margin and risk premium, etc. and determine the rate of interest to be charged for loans and advances.
The Company intimates the Borrower: The loan amount, annualized rate of interest, tenure, amount of equated monthly installment at the time of sanction of the loan.
Principles for determining interest rate for loans:
- Epimoney Private Limited (herein after referred to as “the Company”) has its own model for arriving at interest rates taking into consideration among other things, the Company’s weighted average cost of funds, un-allocable overheads and other administrative costs which is further adjusted for ALM mismatch. The weighted average cost of funds is computed considering the cost of the Company’s aggregate borrowings at month end time from various sources such as bank, NBFC lines, non-convertible debentures, etc.
- The rate of interest for loans for various business segments and various schemes thereunder is arrived at through Company’s interest rate model, cost on account of risk and tenor premium for the concerned business segment, business specific operating cost and margin is added to arrive at the lending rate.
- The final lending rate for various products offered by the Company will be arrived at, after taking into account market reputation, interest, credit and default risk in the related business segment, historical performance of similar homogeneous clients, profile of the borrower, tenure of relationship with the borrower, repayment track record of the borrower in case of existing customer, subventions available, deviations permitted, future potential, group strength, overall customer yield, nature and value of primary and collateral security, etc. Such information is gathered based on information provided by the borrower, credit reports, market intelligence and information gathered by field inspection of the borrower’s premises.
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 combination of above factors.
- The interest rates could be offered on fixed or variable basis and charged on flat or reducing balance method.
- The interest could be charged on daily/fortnightly/monthly or quarterly basis or such other periodicity (based on type of product) as may be approved by the designated authority. Specific terms in this regard would be addressed through the relevant product policy. Rests for different products / segments.
- Interest rates / interest type would be intimated to the customers at the time of sanction/ availing of the loan and EMI apportionment towards interest and principal dues would be made available to the customer.
- The interest shall be deemed payable immediately on the due date as communicated and no grace period for payment of interest is allowed.
- Besides normal interest, the company may levy additional / penal interest for delay or default in making payments of any dues. These additional or penal interests for different products or facilities would be decided by the respective business / product heads
- Changes in the interest rates and charges would be prospective in effect and intimation of change of interest or other charges would be communicated to customers in a mode and the manner deemed fit and transparent.
- Besides interest, other financial charges like processing fees, origination fees, cheque bouncing charges, late payment charges, re-scheduling charges, pre-payment / foreclosure charges, part disbursement charges, cheque swap charges, security swap charges, charges for issue of statement account etc., would be levied by the company wherever considered necessary. Besides these charges, stamp duty, GST and other cess would be collected at applicable rates from time to time as communicated in the documentation provided.
Any revision in these charges would be have a prospective effect and will be communicated with the borrower.
- While deciding the charges, the practices followed by the competitors in the market 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.
- Any revision in the Company’s interest rates applicable to business would be reviewed by the Board of Directors.
The rates of interest shall be reviewed periodically and any revisions in this policy shall be decided by ALCO and shall, subsequently, be presented to the Board of Directors of the Company for its approval.