Reserve Bank of India (RBI) had vide its Circular DNBS / PD / CC No. 95/ 03.05.002/ 2006-07 dated May 24, 2007 advised that Boards of Non-Banking Finance Companies(“NBFC”) to lay out appropriate internal principles and procedures in determining interest rates, processing and other charges. Further, vide circular DNBS (PD)C.C. No. 133 /03.10.001/ 2008-09 January 2, 2009, RBI advised the NBFCs to adopt appropriate interest rate models considering relevant factors and to disclose the rate of interest, gradations of risk and rationale for charging different rates of interest to different category of borrowers.

Keeping view of the RBI Guidelines as cited above, the board of MyLoanCare Ventures Private Limited (the “Company”) is approving an interest rate policy outlining the interest rate model and risk gradation approach to be adopted by the company. This policy should always be read in conjunction with RBI guidelines, directives, circulars, and instructions. The Company will apply best industry practices so long as such practice does not conflict with or violate RBI guidelines.

The policy of the Company for determining interest Rates, processing fees and other charges is as follows:

• Interest Rate Model:The company has an interest rate model whereby the rate of interest for same product and tenor availed during same period by customers would be different from customer to customer depending upon consideration of any or combination of a few or all factors listed out in the points below. Hence, the interest rate applied would be different from customer to customer and his/ her loans
  • Cost of funds: The rate of interest shall be determined based on the cost of borrowed funds, matching tenor cost, market liquidity, refinance avenues and rates offered by competition.
  • Credit risk:The rate of interest shall further be determined based on an assessment of the default risk for each product and customer depending on the profile of the customers, professional qualifications, income, existing obligations to income ratio, stability in earning and employment and repayment ability, nature and value of primary and collateral securities offered, level of supporting documents available, verification reports, past repayment track record of the customers, industry trends, risk gradation of the customer etc.
  • Loan Terms: The rate of interest will also include a tenor premium depending on the loan tenure during which the loan has to be repaid. Further, interest rate can be different repayment structures and flexibility to repay the loan such as period of moratorium offered, overdraft facility, term loan or a monthly installment loan. It will further vary by the fixed or floating nature of interest rate. All these factors together impact the repricing and ALM risks and hence, will be used as a factor to determine the rate if interest to be charged from a specific borrower.
  • Cost of operations: Factors such as the loan structure, capital risk weightage, the size of the loan, location of the borrower and other factors that affect the costs associated with a particular transaction would be considered before arriving at the final interest rate quoted to a customer.

In addition to the above, the company has put in place a set of policies governing the formulation and communication of interest rate related information to its customers:

• The annualized rate of interest would be intimated to the customer. The interest rates would be offered on fixed, floating, variable basis. The prime lending rate for the floating rates would be reviewed on quarterly intervals. In case of floating rate of interest, the interest rate would be reviewed and reset on quarterly basis. The interest rate would be computed on daily balances basis and charged on monthly rest or such other rest as the empowered committee decide in accordance with applicable rules and regulations.
• Interest rates shall be intimated to the customers at the time of sanction/ availing of the loan and a monthly schedule showing the apportionment of EMIs towards interest and principal dues shall be made available to the customer.
• Interest changes would be prospective in effect and intimation of change of interest, if any, or other charges would be communicated to customers.
• The interest rate, benchmark prime lending rate and other charges applicable from time would be hosted on website and updated from time to time.

Penal Interest /Late payment charges

• Besides normal interest, the Company may collect penal interest / late payment charges for any delay or default in making payments of any dues. These penal interest / late payment charges for different products or facilities would be decided by the Company from time to time.
• No claims for refund or waiver of such charges/ penal interest / additional interest would normally be entertained by the company and it is the sole discretion of the company to deal with such requests if any.

Processing /documentation and other charges

• The company may also charge processing fees to conduct the loan appraisal and to recover its costs incurred for the loan processing. The fees will be charged at the time of filing the loan application or at any stage as decided by the Company from time to time.
• All processing / documentation and other charges are paid by the borrower to avail a loan are expressly stated in the loan documents.
• The processing charges may vary by customer or product depending upon the amount of loan, past relationship of the customer with the Company and the risk profile which relates to the cost of processing the loan application.
• No claims for refund or waiver of such charges/ penal interest / additional interest would normally be entertained by the company and it is the sole discretion of the company to deal with such requests if any.

Others

The interest rate models, benchmark prime lending rate (BPLR) and other charges applicable shall be reviewed by a Management Committee periodically and suitable recommendations will be made to the Board.

• MyLoanCare Ventures Private Limited offers competitive annualized interest rates across its range of products. The interest rates* for our loan products are given below.
  • Unsecured Personal Loans:17% to 35.99% per annum
  • Secured loans: 12-20%

The interest rate would be computed on daily balances basis and changed on monthly rest at the rate as set out in the loan agreement. The interest rate range is indicative, and the final rate is arrived at basis (a) Risk Gradation of the customer (b) Tenure of the Loan (c) Nature of Collateral and (d) Existing relationship with MyLoanCare Ventures Private Limited.

Interest rates are subject to change at any point of time at the sole discretion of MyLoanCare Ventures Private Limited.

Notice

The effective date of this Policy, as stated below, indicates the last time this Policy was revised or materially changed.

Effective Date

7th September 2022