Interest Rate & Charges Policy
Fair, transparent, and risk-based pricing
in full compliance with RBI regulatory requirements.
Effective Date
Immediately upon publication
Policy Version
2.0
Last Updated
January 2025
Compliance
RBI Fair Practices Code
This Interest Rate Policy outlines the principles, methodology, and transparency standards followed by Rupeeva in determining interest rates and charges for all lending products. We are committed to fair, transparent, and risk-based pricing in full compliance with regulatory requirements.
Objective of This Policy
- • Transparency: Clear disclosure of all interest rates and charges upfront
- • Fair Pricing: Risk-based pricing reflecting borrower profile and market conditions
- • Regulatory Compliance: Adherence to RBI guidelines
The primary objective is to establish a structured framework for determining interest rates that balances market competitiveness, risk assessment, and regulatory requirements while ensuring customers receive clear and comprehensive pricing information.
Governance & Approval Structure
Board of Directors
Final approval & annual review
Pricing Committee (ALCO)
Quarterly review of benchmark rates and spreads
Business Units
Implementation within approved framework
Interest Rate Determinants & Methodology
Cost-Based Factors
- • Cost of borrowed funds
- • Matching tenor costs and liquidity premiums
- • Operational costs including technology & compliance
- • Market liquidity conditions
Risk-Based Factors
- • Credit score & bureau history (CIBIL/Experian)
- • Income stability & repayment capacity
- • Loan tenure and purpose
- • Digital behavior score
- • Geographic risk assessment
Market & Strategic Factors
- • Competitor benchmarking
- • Regulatory requirements
- • Customer relationship value
- • Product-specific pricing strategies
Interest Rate Types & Structures
Fixed Interest Rates
- • Rate remains constant throughout tenure
- • Applicable for tenure up to 36 months
Floating Interest Rates
- • Linked to RBI Repo / External Benchmark
- • Reset frequency: Quarterly
- • Applicable for tenure above 36 months
Reducing Balance Method
- • Interest calculated on daily reducing balance
- • Transparent & lower effective cost
Charges, Fees & Penal Interest
| Charge Type | Amount/Rate | When Applicable |
|---|---|---|
| Processing Fee | Up to 2% of loan amount | At loan application |
| Penal Interest | 2% per month on overdue amount | After 5 days EMI due date |
| Prepayment Charges | 0–2% as per agreement | On partial/full prepayment |
| Bouncing Charges | ₹500 per instance | Each failed payment |
| Documentation Charges | ₹1000–₹2000 | At loan sanction |
| Statement Charges | ₹100 per statement | On request |
All charges are exclusive of GST. Penal interest is calculated only on overdue amount. No charges are levied without explicit disclosure.
Transparency & Customer Disclosure
- • APR disclosed in sanction letter
- • Complete EMI breakdown
- • 7 days notice for any rate changes
- • Digital access to loan documents
Customer Rights & Grievance Redressal
- • Email: info@rupeeva.com
- • Resolution Commitment: 6 working days
Policy Review & Updates
- • Quarterly market benchmark review
- • Half-yearly regulatory compliance check
- • Annual comprehensive board review
Any changes will be communicated with 30 days notice and will apply prospectively.
Last updated: January 2025 | Rupeeva