SRI VIJAYARAM HIRE PURCHASE AND LEASING FINANCE
LIMITED
ஸ்ரீ
விஜயராம் ஹையர்
பர்ச்சேஸ்
& லீசிங் பைனான்ஸ்
லிமிடெட்
INTEREST RATE POLICY
SRI VIJAYARAM HIRE PURCHASE AND LEASING
FINANCE LIMITED
INTEREST RATE POLICY
Interest
Rate:
The Interest rate
applicable to each loan account will be assessed based on multipleparameters
such as;
1) Size of
the loan;
2) Administration,
Management and collection cost with reference to size of the loan;
3) Accessibility
to the borrower, distance and;
4) Risk
related to a party, type of asset, credit worthiness and track record of the
borrower.
5) A
reasonable margin for the company.
The lending rates
offered by the Company are given below:
Interest Rate
Model
2 WHEELERS & 3
WHEELERS
|
S.NO |
PARTICULARS |
% of INTEREST |
|
1 |
Cost of Funds(including Rate of Interest , Management expense, stationary, Loss of interest shortfall in
SLR securities) |
12% to 14% |
|
2 |
Loan Administration ,Monitoring , Field visit,
Management& collection expense |
6% to 9% |
|
3 |
Risk premium |
3% to 7% |
|
4 |
Margin |
5% to 6% |
|
|
|
26% to 36% |
4 WHEELERS (Both New and old)
|
S.NO |
PARTICULARS |
% of INTEREST |
|
1 |
Cost of Funds(including Rate of Interest , Management expense,stationary
, Loss of interest shortfall in SLR securities) |
12% to 14% |
|
2 |
Loan Administration ,Monitoring , Field visit,
Management& collection expense |
4% to 8% |
|
3 |
Risk premium |
3% to 4% |
|
4 |
Margin |
5% to 6% |
|
|
|
26% to 36% |
Rationale for changing different rates of interest
to different Category of Borrowers:
The rate of interest charged to different
types of loans depends on the factors such as:
a) Size of the loan,
b) Administration, Management and collection
cost with ref. to size of the loan
c) Accessibility to the borrower, distance and
d) Risk related to a party, type of asset,
size of loan, visit the remote locations of the borrower, credit worthiness and
track record of the borrower.
Intimation to
Borrowers:
The Company shall
intimate the borrower loan amount, annualized 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 company shall
clearly specify the exact due dates for repayment of a loan, frequency of
repayment, breakup between principal and interest, examples of NPA
classification dates, etc. in the loan agreement and the borrower shall be
apprised of the same at the time of loan sanction and also at the time of
subsequent changes, if any, to the sanction terms/loan agreement till full
repayment of the loan.
The Company levy
Processing Charges @ 1% of the Loan Amount for all loans given. For small loans
less than Rs.1,00,000/-. The processing charges are fixed of Rs.500/- per loan.
The Processing Charges charged will be mentioned in the Sanction Letter/Loan
Agreement.
The other charges
such as cheque bouncing charges, prepayment charges, additional interest
charged on delayed payments along with statutory levies, if any, are mentioned
in the Sanction Letter/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.
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. Penal interest should be finalised in the
board meeting.
The lending
interest rate is reviewed periodically by the ALM Committee. Any revision in
the lending rates will be reviewed and re-fixed by the ALM committee.