Interest rate policy for loan
Reserve Bank of India (RBI) vide its Circular DNBS PD/CC No.95/03.05.002/2006-07 dated May 24, 2007 advised that Board of Non Banking Finance Companies (NBFC’s) lay out appropriate internal principles and procedures in determining interest rates, processing and other charges.
With a view to institute fair and transparent dealings in the lending business, the company has adopted and put in place the following Interest Rate Policy parallel to the company’s Fair Practice Code, in accordance with the Reserve Bank of India circular no. DNBS.CC.PD.No.266/03. 10.01/2011-12 dated March 26, 2012.
RBI further advised NBFC’s to adopt appropriate interest rate model taking into account relevant factors and to disclose the rate of interest, gradations of risk and rationale for charging different rate of interest.
Keeping in view the RBI’s guidelines as cited above, and the good Grievance Redressal practices being followed by SBCL, the following internal guidelines, policies, procedures and interest rate model have been adopted by SBCL. These need to be taken into cognizance while determining interest rates and other charges, and changes thereto.