Policy Name: Interest Rate Policy
Review: Annual
Owner / Contact: Compliance Department
Approver: Board of Directors
The Reserve Bank of India, vide its Circular DNBS / PD / CC No. 95/ 03.05.002/ 2006-07 dated May 24, 2007, as amended from time to time (RBI Regulations), had advised the Boards of Non-Banking Financial Companies (NBFCs) to outline appropriate internal policies and procedures to define their interest rates, processing fees and other charges.
The primary objective behind drafting and adopting this Policy is to define the standard interest rates to be followed for different customer segments and loan offerings.
Board of Director: The Board of Directors of the Company shall oversee this Interest Rate Policy and ensure its effective implementation.
The company’s borrowings and all its loans to clients shall be on Fixed Rates/Reducing rates as per decided terms and conditions. ISHIKA CAPITAL PRIVATE LIMITED being a diversified NBFC is engaged in the business of lending money through various products to cater the needs of different customer segments.
The interest rate applicable to different loan products of the Company shall be determined by taking the following aspects into consideration:
The Company shall take into account factors like risk associated with credit, repayment history, borrower profile, industry, ticket size, credit score, and others...
Besides interest, the Company will levy additional financial charges such as loan processing fees, cheque bounce charges, ESC failure charges, penal interest charges, pre-payment/foreclosure charges, and more...
The Company shall disclose rate of interest, explain rationale for rate differentiation, and communicate any rate or fee change through website, SMS, email, or newspaper notification with a 1-month notice period...
This Policy shall be reviewed by the Company’s Board of Directors annually or as required. Any updates shall be presented before the Board for final approval.