Interest Rate Policy1. POLICY FOR DETERMINING INTEREST RATES, PROCESSING & OTHER CHARGES:
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 taking into account 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 following internal guiding principles and interest rate model are therefore laid out by the board of Finance edge (the "Company"). This policy should always be read in conjunction with RBI guidelines, directives, circulars and instructions. The Company will apply the best industry practices so long as such practice does not conflict with or violate RBI guidelines.2. THE POLICY OF THE COMPANY FOR DETERMINING INTEREST RATES, PROCESSING AND OTHER CHARGES IS AS FOLLOWS:
Student fee finance scheme is ZERO COST EMI means student have not to bear any interest charges for their finance. Effective ROI will be bear by educational institute and company.
The effective rate of Interest for the student will be depends on the agreement between educational institute and company. Where the details whereof shall be set out in the Repayment Schedule which are shared with the Borrower(s) in the ‘Welcome Letter/Welcome Kit'.3. 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.4. THE RATE OF INTEREST SET OUT SHALL BE CALCULATED ON A REDUCING BASIS:
All processing / documentation and other charges recovered are expressly stated in the fee finance scheme documents. They vary based on the product, exposure limit, customer segment, geographical location and generally represent the cost incurred in rendering the services to the customers. The practices followed by other competitors in the market would also be taken into consideration while deciding the charges.5. OTHERS:
The interest rate models, benchmark prime lending rate (BPLR) and other charges applicable shall be reviewed by the management periodically and suitable recommendations will be made.
Finance edge offers competitive annualized interest rates across its range of products. The interest rates* for our finance scheme vary and are based on the following:
- Profile of Customers
- Tenure of the finance
- Geography of residence
- Prior / existing relationship with institute.
- The interest rate would be computed on daily balances basis and charged on monthly rest at the rate as set out in the agreement. Interest rates are subject to change at any point of time at the sole discretion of management.