Back to Home

Interest Rate Policy & Risk Gradation

I. Preface

Reserve Bank of India (RBI) vide its Circular DNBS / PD / CC No. 95/ 03.05.002/ 2006-07 dated May 24, 2007 advised Non Banking Finance Companies (NBFCs) to lay out appropriate internal principles and procedures in determining interest rates, processing and other charges. This was reiterated vide RBI’s circular DNBS (PD) C.C. No. 133 / 03.10.001/ 2008-09 January 2, 2009 and DNBS.CC.PD.No.320/03.10.01/2012-13 dated February 18, 2013.

Keeping in view the RBI’s guidelines as cited above, and the good governance practices, the following internal guidelines, policies, procedures, and interest rate policy have been adopted by dial4money for its lending business.

II. Methodology

Base Interest Rate Calculation

The base interest rate will be arrived at based on the weighted average cost of funds, risk premium, other costs such as administrative expenses and profit margin.

The base interest rate is reviewed periodically by the ALM Committee.

Assessment Parameters

The base interest rate applicable to each loan account will be assessed based on multiple parameters:

  • Nature of Lending— Unsecured/secured loans and tenure
  • Securities & Collateral— Nature and value of securities offered
  • Customer Risk Profile— Qualifications, earnings stability, financial position
  • Credit History— Past repayment track record and credit reports
  • Default Risk— Inherent credit risk in business segments
  • Industry Trends— Competitive offerings and market conditions

Current Interest Rate Structure

  • Mark-up Range:200 – 1300 basis points
  • Interest Rate Range:12% – 36% payable monthly

The mark-up over the base rate varies depending on the risk profile of the customer, available security, client’s reputation, past track record, and financial standing.

Key Policies

  1. The rates of interest for the same product and tenor availed during same period by different customers need not be standardised but could be different depending upon consideration of any or combination of factors listed above.
  2. The Company shall intimate the borrower loan amount, annualised rate of interest and method of application at the time of sanction of the loan along with the tenure and amount of monthly instalment.
  3. The other charges such as processing fees, additional interest charged on delayed payments and cheque bouncing charges shall be mentioned in the sanction letter/MID/loan agreement.
  4. The rates of interest applicable to each loan account is subject to change as the situation warrants and is subject to the Management’s perceived risk on a case-to-case basis.

Important Notice

Claims for refund or waiver of charges, penal interest, or additional interest would normally not be entertained by the company, and it is at the sole discretion of the company to deal with such requests if any.

Have Questions About Our Interest Rates?

Our team is here to help you understand our interest rate policy and find the best loan option for your needs. Contact Us or Apply for Loan.