This Interest Rate Policy (“Policy”) is formulated by Samraat Finlease Private Limited (“Company”), a Non-Banking Financial Company registered with the Reserve Bank of India (“RBI”), in accordance with the applicable regulatory framework governing NBFCs, including the Fair Practices Code issued by the RBI, as amended from time to time. The Policy establishes a transparent and robust framework for determining interest rates and other applicable charges in respect of the Company’s lending activities. It also sets out the principles for risk-based pricing, ensuring that interest rates are determined based on the borrower’s risk profile, cost of funds, operational costs, and prevailing market conditions. This Policy aims to ensure consistency, transparency, and fairness in the Company’s interest rate practices, while maintaining compliance with regulatory requirements and safeguarding the Company’s financial and risk management objectives.
The objective of this Policy is to establish a clear, consistent, and transparent framework for determination of interest rates and other applicable charges for the Company’s lending activities.
The Policy sets out the methodology for arriving at benchmark interest rates and the principles for applying appropriate spreads based on the borrower’s risk profile, cost of funds, operational costs, and prevailing market conditions, in order to determine the final interest rates charged to customers.
The Policy further aims to ensure that the Company’s interest rate practices are fair, non-discriminatory, and in compliance with applicable regulatory requirements.
The Company shall ensure that interest rates are applied in a non-discriminatory manner, except to the extent justified by risk-based pricing principles.
This Policy shall be reviewed at least annually, or earlier if required, to ensure its continued relevance and effectiveness.
An earlier review may be undertaken in the event of any regulatory changes, changes in market conditions, modifications in the Company’s business strategy, or any other material developments impacting the Company’s lending practices.
Any amendments to this Policy shall be subject to approval in accordance with the Company’s internal governance framework.
Board of Directors
The Board of Directors shall have overall oversight of this Interest Rate Policy of Samraat Finlease Private Limited (“Company”) and shall approve the broad framework governing the determination of interest rates, including the Interest Rate Model and the risk gradation approach.
The Board shall also ensure that the Policy is implemented in compliance with applicable regulatory requirements and aligned with the Company’s risk management framework.
Management
The Management shall be responsible for the implementation and operationalization of this Policy in accordance with the framework approved by the Board. This includes the determination of benchmark interest rates, application of appropriate spreads, and adherence to risk-based pricing principles.
Business Units
The business units may determine lending rates within the approved framework of this Policy, subject to the internal delegation of authority and control mechanisms of the Company, including application of appropriate spreads over benchmark rates based on the borrower’s risk profile and other relevant factors.
Any deviations from the principles or framework specified under this Policy shall require prior approval in accordance with the Company’s internal governance and delegation of authority framework.
The Company shall adopt a structured approach for gradation of risk for borrowers, which shall form the basis for risk-based pricing.
Risk categorisation shall be based on various parameters, including but not limited to:
The Company shall disclose this Interest Rate Policy, including the approach for gradation of risk and rationale for charging differential interest rates, on its website, in accordance with applicable regulatory requirements.