The objectives of this policy are to:

• Establish a transparent framework for determining interest rates.
• Provide appropriate disclosures to customers regarding applicable interest rates.
• Ensure that pricing considerations are applied consistently.
• Take relevant credit and financial factors into account while pricing loans.
• Promote informed decision-making by customers before accepting a loan.

The interest rates applicable to loan products shall be determined in accordance with the Company's Board-approved interest rate framework and applicable regulatory requirements.

The pricing of loans may take into account relevant factors such as:

• Cost of funds.
• Operating and administrative costs.
• Applicable margin.
• Credit and risk considerations.
• Product characteristics.
• Loan tenure and repayment structure.
• Other relevant business and regulatory considerations.

RBI's framework for NBFCs recognises that lending rates are determined under the Board-approved interest-rate model, considering relevant factors such as cost of funds, margin and risk premium. :contentReference[oaicite:1]{index=1}

Where applicable, the Company may follow a risk-based approach to loan pricing.

The applicable rate may vary based on the credit and risk characteristics of the borrower and the relevant loan product.

Factors used for risk assessment may include:

• Credit history and credit information.
• Repayment capacity.
• Income and employment profile.
• Existing financial obligations.
• Loan amount and tenure.
• Product-specific risk factors.

The applicable risk-based approach and rationale for differentiated pricing shall be communicated to the borrower through the applicable loan documentation and disclosures, as required. :contentReference[oaicite:2]{index=2}

Depending on the applicable loan product, the Company may consider the following factors while determining the applicable interest rate:

• Cost and availability of funds.
• Operational and servicing costs.
• Customer credit profile.
• Customer repayment capacity.
• Loan amount.
• Loan tenure.
• Repayment frequency.
• Security or collateral, where applicable.
• Prevailing market and business conditions.
• Applicable regulatory requirements.

The applicable interest rate and relevant pricing information shall be communicated to the customer through the applicable loan application, sanction letter, loan agreement, Key Facts Statement (KFS) or other prescribed documentation, as applicable.

Customers should be provided with sufficient information to understand the financial cost and repayment obligations associated with the loan.

Where applicable, the disclosure may include:

• Applicable interest rate.
• Method of application of interest.
• Annual Percentage Rate (APR).
• Processing fee.
• Applicable taxes.
• Other applicable charges.
• Total repayment obligation.

RBI's framework requires transparency in the disclosure of loan terms and applicable pricing information so borrowers can make informed decisions. :contentReference[oaicite:3]{index=3}

In addition to interest, applicable fees, charges and taxes may be levied in accordance with the relevant loan product and applicable terms.

Such charges may include, where applicable:

• Processing fee.
• Applicable taxes.
• Documentation or service-related charges, where applicable.
• Prepayment or foreclosure charges, where applicable and permitted.
• Other charges specifically disclosed in the applicable loan documentation.

Applicable charges shall be disclosed to customers in accordance with the relevant product terms and applicable regulatory requirements.

Where required, the rate of interest shall be communicated on an annualised basis so that the borrower can understand the rate applicable to the loan.

The applicable method of interest calculation shall be communicated through the relevant loan documentation.

The customer should review the applicable interest rate, repayment schedule and total payable amount before accepting the loan.

RBI guidance for NBFCs specifically provides that the rate of interest should be an annualised rate so that the borrower is aware of the rate charged to the account. :contentReference[oaicite:4]{index=4}

Any change in the applicable interest rate or other charges shall be communicated to the borrower in accordance with the applicable loan terms and regulatory requirements.

Where changes are applicable to existing loans, such changes shall be implemented in accordance with the applicable contractual and regulatory framework.

Customers shall be informed of applicable changes through appropriate communication channels.

RBI's Fair Practices Code principles state that changes in interest rates and charges should be communicated to borrowers and should operate prospectively where the applicable framework requires it. :contentReference[oaicite:5]{index=5}

The Company shall endeavour to maintain transparency in the pricing of its lending products.

Customers should have access to relevant information necessary to understand the cost of borrowing and make an informed decision.

• Interest rate.
• APR, where applicable.
• Processing fee.
• Applicable taxes and charges.
• Repayment schedule.
• Total amount payable.
• Other material loan terms.

For applicable retail and MSME term loans, key facts of the loan are to be disclosed through the prescribed Key Facts Statement (KFS) framework. :contentReference[oaicite:6]{index=6}

This Interest Rate Policy shall be reviewed periodically by the Company in accordance with its internal governance framework and applicable regulatory requirements.

The Company may modify or update this policy where required due to changes in applicable laws, regulations, business practices, products or internal policies.

Any applicable updated version shall be made available through the appropriate communication channels.

For any questions regarding this Interest Rate Policy, customers may contact the Company using the details below.