Interest Rate Policy & Gradation of Risk
SKYRISE CREDIT & MARKETING LIMITED
Transparent methodology for determining interest rates and risk assessment
(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 the Company 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 applicable to each loan account will be assessed based on multiple parameters like:
Nature of Lending
Unsecured/secured lending and tenure considerations
Securities & Collateral
Nature and value of securities and collateral offered by customers
Customer Risk Profile
Professional qualification, stability in earnings, employment, financial positions, past repayment track record
Credit & Default Risk
Inherent credit and default risk in business, particularly trends with sub-groups/customer segments
Industry Trends
Market offerings by competition and industry benchmarks
Review Process
The base interest rate is reviewed periodically by the ALM Committee.
Assessment Parameters & Policies
Rate Differentiation
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 for different customers depending upon consideration of any or combination of a few or all factors listed above.
- 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.
- 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.
- 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.
Refund Policy
Claims for refund or waiver of charges/ penal interest / 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.
Current Interest Rate Structure
The rate of interest charged to our customers is linked to the base rate which is determined based on weighted average cost of funds, risk premium, other costs such as administrative expenses and profit margin.
Mark-up Range
Over base rate depending on risk profile
Interest Rate Range
Payable monthly
Factors Affecting Mark-up
- Risk profile of customer
- Available security
- Client's reputation/positioning
- Past track record
- Financial standing
- Market conditions
Important Note
All interest rates are subject to periodic review and may change based on market conditions, RBI guidelines, and company policies. Customers will be notified of any changes as per our Fair Practice Code.
Questions About Interest Rates?
If you have any questions about our interest rate policy or risk gradation, please contact us: