SRI VIJAYARAM HIRE PURCHASE AND LEASING FINANCE LIMITED

 

ஸ்ரீ விஜயராம்ஹையர் பர்ச்சேஸ் & லீசிங்பைனான்ஸ் 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 ofInterest , 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 ofInterest , 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 Managementís 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.