Introduction
a. The Reserve Bank of India (“RBI”) vide its Master Direction – Reserve
Bank of India (Non-Banking Financial Company – Scale Based
Regulation) Directions, 2023 advised all Non-Systemically Important Non-
Deposit taking NBFCs to lay out appropriate internal principles and
procedures in determining interest rates, processing fee and other
charges. RBI also directed to make the policy available on the website of
the NBFC, and update whenever there is a change.
b. The Board of Directors of R.K. Bansal Finance Private Limited
(“Company”) in their meeting held on June 30, 2023, had adopted the
Interest Rate Policy (“the Policy”) in accordance with the RBI Directions
earlier applicable on the Company. The same has now been revised to
reflect the changes in internal policies etc.
c. This Policy should always be read in conjunction with extant RBI
guidelines, directives, circulars and instructions.
- Objective
The main objectives of this Policy are to:
a. Ensure that interest rates are determined in a manner as to ensure long
term sustainability of business by taking into account the interests of all
stakeholders,
b. Develop and adopt a suitable model for calculation of a interest rate;
c. Enable fixation of interest rates which are reasonable: both actual and
perceived;
d. Ensure that computation of interest is accurate, fair and transparent in line
with regulatory guidelines and market practices;
e. Charge differential rates of interest linked to the risk factors as applicable;
f. Decide on the principles, methodology and approach of charging spreads
to arrive at final rates charged from customers.
- Role of Board of Directors
The Board of Directors shall have oversight for the interest rate Policy of the
Company. To ensure effective implementation of the Interest Rate Policy.
- Determination of Interest Rates on Loans and Credit Facility
The Company lends money to its customers mainly through digital platforms
and has various products to cater to the needs of different categories of
customers.
The interest rate of each product is decided from time to time, giving due
consideration to the following factors:
a. Cost of Capital : To run the business, the Company has been infused
with equity share capital in huge proportions, and accordingly the cost of
such equity share capital being infused shall be taken into consideration.
b. Weighted Average cost of Borrowing: Since the Company borrows
funds from various banks, financial institutions and other external
lender(s), the weighted average borrowing cost, as well as costs
incidental to those borrowings like brokerage, consultancy fees,
processing fees shall be taken into consideration. The cost of borrowings
varies according to market conditions thus pricing of interest rates shall
be consequently impacted and decided accordingly.
c. Risk: Risk related to loss of credit due to short tenure of loan, nature of
facility, ticket size of loan, geographical condition, customer segment,
sourcing channels, stability in earnings and employment, financial
position, past repayment track record with us or other lenders, external
ratings of customers, credit reports, customer relationship, other existing
indebtedness, results from digital verifications etc. Therefore, risk of
recovery of loan shall be taken into consideration and accordingly the risk
premium would be reckoned.
d. Opex Cost: It includes employee expenses, office and infrastructure
related fixed and variable costs, operations costs, sales and marketing
expenses, etc.
e. Profit Margin: Fair profit margin is added to arrive at the lending rate. The
company may at its discretion fix different margins for different customers,
considering the risk of default. All customers will however be notified of the
interest payable for the loan to be availed from the company.
The Board of Directors, in its meeting held on April 21, 2025, reviewed
and approved the revised Interest Rate and Penal Charges Policy. The
Board further resolved to update the interest rate structure, which shall
now be applicable as follows:
- Pay Day Loan: 0.10% to 1.00% per day
- Business Loan: 8% to 25% per annum.
- Loan Against Property (LAP): 12% to 15% per annum.
- EMI Loan: 24% to 365% per annum, with a maximum tenure of up to 6
months. - Processing Fees / Penal Charges / Other Charges
a. Besides interest, other financial charges like processing fees, Equated
Monthly Installment (EMI) bouncing charges, penal charges on late
repayment of a loan or EMI, rescheduling charges, prepayment /
foreclosure charges, part disbursement charges, charges for issue of
statement accounts etc., would be levied by the company wherever
considered necessary. Besides these charges, stamp duty, service tax /
GST and other cess would be collected at applicable rates from time to
time. Any revision in these charges would be implemented on a
prospective basis with due communication to customers.
b. The board decided that the company will levied a EMI Bouncing
charges of Rs. 580/-.
c. The Company shall ensure that no capitalisation of penal charges i.e., no
further interest computed on such charges. The Company shall also not
introduce any additional component to the rate of interest and ensure its
strict compliance.
d. The Penal Charges will be levied at the rate of 0.1% per day of
outstanding principal loan amount.
e. The Company shall ensure that the quantum of penal charges is
reasonable and commensurate with the non-compliance of material terms
and conditions of loan contract without being discriminatory within a
particular loan / product category.
f. The Company shall display the quantum and reason for penal charges to
the customers in the loan agreement and / Key Fact Statement (KFS) as
applicable.
g. The applicable penal charges, as updated from time to time, shall be
displayed on the Company’s website.
h. The Company shall ensure that the applicable penal charges are clearly
communicated to the borrowers, whenever reminders for non-compliance
of loan terms are sent to borrowers.
i. Any instance of levy of penal charges and the reason therefore shall also
be appropriately communicated to the borrowers.
- Communication to Customer
a. The Company shall communicate the effective rate of interest – to
customers at the time of sanction / availing of the loan through the
acceptable mode of communication. Interest Rate Policy would be
uploaded on the website of the company and any change therein would be uploaded on the web site of the Company.
b. Changes in the rates and charges for existing customers, if any, would be
communicated to them through various modes of communication such as
on the website, digital platform and/or via email, letters, SMS, etc.
However, the company would ensure that there is no change during the
tenure of the loan for such loans which had already been contracted with
customers
- Waiver / Reduction of Charges
Managing Director or Business Head Loan of the Company be authorized to
waive-off / reduce any amount including Principal amount / Interest Rates,
Processing and Other Charges, at their own discretion, as may deem fit.
Further, aforesaid officials may delegate this authority in favor of any other
person.
- Amendments To This Policy
The Board of directors is authorized to make appropriate changes to this Policy
taking into account changes in the money market scenario in the Country which
includes the upward / downward revision in interest rates applicable to various
loan products and the relevant charges applicable for such loan products.