SMFG India Credit Co. Ltd. (Formerly Fullerton India Credit Co. Ltd.) Policy for Determining Interest Rates, Processing & Other Charges
Reserve Bank of India ( RBI) had vide its Circular DNBS / PD / CC No. 95/ 03.05.002/ 2006-07 dated May 24, 2007 advised that Boards of Non-Banking Finance Companies(“NBFC”) to lay out appropriate internal principles and procedures in determining interest rates, processing and other charges. Further, vide circular DNBS (PD)C.C. No. 133 /03.10.001/ 2008-09 January 2, 2009, RBI advised the NBFCs to adopt appropriate interest rate models taking into account relevant factors and to disclose the rate of interest, gradations of risk and rationale for charging different rates of interest to different category of borrowers.
Keeping view of the RBI Guidelines as cited above, the following internal guiding principles and interest rate model are therefore laid out by the board of SMFG India Credit Co. Ltd. (Formerly Fullerton India Credit Co. Ltd.) (the “Company”). This policy should always be read in conjunction with RBI guidelines, directives, circulars and instructions. The Company will apply best industry practices so long as such practice does not conflict with or violate RBI guidelines.
The policy of the Company for determining Interest Rates, Processing and Other Charges is as follows:
All processing / documentation and other charges recovered are expressly stated in the Loan documents. They vary based on the loan product, exposure limit, customer segment, geographical location and generally represent the cost incurred in rendering the services to the customers. The practices followed by other competitors in the market would also be taken into consideration while deciding the charges.
The interest rate models, benchmark prime lending rate (BPLR) and other charges applicable shall be reviewed by the Empowered Committee periodically and suitable recommendations will be made to the Board.
SMFG India Credit Co. Ltd. (Formerly Fullerton India Credit Co. Ltd.) offers competitive annualized interest rates across its range of products. The interest rates* for our loan products are given below. Interest rates vary and are based on the following:
22% to 28% per annum
9% to 24% per annum floating / fixed rate of interest. Floating rate of interest is linked to the SMFG India Credit retail prime lending rate which is currently at 20.80%
13% to 36% per annum
9% to 18% per annum is the floating rate of interest. This is linked to the SMFG India Credit Co. Ltd. (Formerly Fullerton Credit India Co. Ltd.) Retail Prime Lending Rate which is currently at 20.80%.
9% to 16% per annum floating rate of interest. Floating rate of interest is linked to the SMFG India Credit retail prime lending rate which is currently at 20.80%
10% to 25% per annum
Minimum interest rate - 24.00% per annum
Maximum interest rate - 25.50% per annum
Average interest rate - 24.22% per annum
27% to 36% per annum
15% to 27% per annum
*The interest rate would be computed on daily balances basis and changed on monthly rest at the rate as set out in the loan agreement. The interest rate range is indicative and the final rate is arrived at basis (a) Profile of Customers (b) Tenure of the Loan(c ) Geography of residence (d) Nature of Collateral (If provided (e) Prior / existing relationship with SMFG India Credit.
Interest rates are subject to change at any point of time at the sole discretion of SMFG India Credit
**High Ticket LAP here refers to Loan Against Property for an amount higher than INR 5 Crore