Interest Rate Policy

Objective

This Interest Rate Policy outlines the principles and procedures adopted by Rajput Leasing and Finance Ltd. to determine, review, and communicate interest rates charged on its various loan products, in a fair, transparent, and consistent manner. It ensures compliance with the Reserve Bank of India (RBI) regulations applicable to Non-Banking Financial Companies (NBFCs).

Scope

This policy applies to all lending activities of the Company, including but not limited to:

Gold Loans

Personal Loans

Business Loans

Any Other Financial Products

Basis for Charging Interest

Interest rates are determined based on a combination of the following factors:

Cost of Funds: The base cost at which the Company procures funds.

Operational Costs: Administrative and processing expenses.

Credit Risk Premium: Based on borrower profile, creditworthiness, repayment capacity, and security offered.

Loan Tenure: Short-term loans may have different rates than long-term loans.

Type of Product: Different products may have varying pricing structures (e.g., Gold Loan vs. Personal Loan).

Market Conditions: Prevailing economic, interest rate, and inflationary trends.

Types of Interest Rates

Fixed Rate: Interest rate remains constant for the entire loan tenure.

Floating Rate: Interest rate may change during the loan tenure based on market conditions or internal benchmarks.

Annualized Rate

All interest rates are communicated in annualized percentage terms (APR) to help customers understand the effective borrowing cost.

Communication to Customers

Interest rates applicable to each loan shall be clearly disclosed in:

The Loan Agreement

Sanction Letter

Branch Notice Boards

Company Website

Any change in interest rate (for floating-rate loans) shall be communicated to the borrower in writing in advance and applied prospectively.

Interest Rate Range

The Company will maintain an approved interest rate range for each product (e.g., Gold Loan: 12% to 24% p.a.), depending on various risk and cost factors.

Penal Interest / Late Payment Charges

In case of delayed repayment, a penal interest or late fee may be levied.

The penal interest, if applicable, will be communicated upfront and mentioned in the loan agreement.

Review and Monitoring

The interest rate policy is reviewed periodically by the Board of Directors.

All changes in the pricing strategy or risk assessment methodology will be updated in this policy and communicated appropriately.

Transparency and Fair Practice

The Company ensures complete transparency in interest rate policies, including disclosure of:

Processing Fees

Prepayment Charges (if any)

Foreclosure Charges

No hidden charges or arbitrary interest hikes are permitted.

Regulatory Compliance

This Interest Rate Policy is framed in accordance with:

RBI Master Directions for NBFCs

Fair Practices Code

Other applicable regulatory guidelines