INTEREST RATE POLICY
The Reserve Bank of India vide its Master Direction RBI/DNBR/2016-17/45 Master Direction DNBR.PD.008/03.10.119/2016-17 dated September 01, 2016 and updated from time to time:
Had advised the Boards of NBFCs to adopt an interest rate model taking into account relevant factors such as cost of funds, margin and risk premium and determine the rate of interest to be charged for loans and advances.
The rates of interest and the approach for gradation of risks shall also be made available on the web-site of the companies or published in the relevant newspapers. The information published in the website or otherwise published shall be updated whenever there is a change in the rates of interest.
The rate of interest must be annualised rate so that the borrower is aware of the exact rates that would be charged to the account.
In compliance with the requirements of the RBI Regulations mentioned above and the Fair Practices Code of APAC FS, APAC FS has adopted this Interest Rate Policy broadly outlining the Interest Rate Model and risk gradation approach.
Interest rates offered could be on fixed rate or floating rate basis.
A. Fixed Rates
At present the annualised rate of Interest* to be charged to customers, at the time of sanctioning loans, shall be in the range as mentioned below:
|Lending Assets/Sector||Range of Interest|
|Micro & Small LAPs||12% to 28%|
|Housing Loans||12% to 24%|
|Other Loans||9% to 28%|
*under exceptional circumstances, based on risk perception, this may fall outside the indicated range
B. Floating Rates
In case of floating interest rates, the interest rates will be benchmarked as under:
The interest rates charged by APAC shall be linked with the APAC FS Prime Lending Rate (APAC FS PLR) or any other benchmark as may be agreed with the customer. APAC PLR shall be determined from time to time by the ALRPCO (Asset Liability Management and Resource Planning Committee) on the basis of cost of borrowing, operating costs, liquidity, interest rate trend and return on equity thresholds.
Spread (Plus or Minus) over APAC FS PLR will be determined on the basis of nature and duration of loan, nature of security, credit worthiness, risk perception and competition.
Intimation of change of interest would be communicated to customers in a manner deemed fit, as per terms of the loan documents. Any revision in interest would be with prospective effect.
In case of staggered disbursements, the rates of interest would be subjected to review and the same may vary according to the prevailing rate at the time of successive disbursements or as may be decided by APAC.
Currently APAC’s PLR is 18% p.a.
Loan amount, annualised rate of interest, tenure of loan and the apportionment of installments will be communicated to the customer in the sanction letter.
Besides normal Interest, APAC FS may levy additional interest for adhoc facilities, penal interest/default interest for any delay or default in making payments of any dues. The details of penal interest charges will be mentioned in bold in the loan agreement and sanction letter.
Besides interest, other financial charges like processing charges, cheque bouncing charges, pre-payment charges, cash handling charges, RTGS/other remittance charges, commitment fees, charges on various other services like issuing no due certificates, no objection certificate, letters ceding charge on assets/ security, security swap & exchange charges etc. would be levied by APAC wherever considered necessary. In addition, the Goods and Services Tax and other taxes, levies or cess would be collected at applicable rates from time to time.
Claims for refund or waiver of charges/ penal interest/additional interest would normally not be entertained by APAC. It is the sole and absolute discretion of APAC FS to deal with such requests, if any.
The risk premium for a customer shall be assessed on the basis of the following factors (not necessarily all the factors):
profile and market reputation of the customer
inherent nature of the product, type of facility
tenure of relationship with the customer group and past repayment track record
group strength, future potential, repayment capacity based on cash flows and other financial commitments of the customer
Nature and value of primary and secondary security
Type of asset being financed, end use of the loan
Interest, default risk in related business segment
Regulatory stipulations, if applicable and
Any other factors that may be relevant in a particular case
a) APAC FS will communicate the rate of interest to customers at the time of sanction/ availing of the loan through the acceptable mode of communication.
b) Interest Rate Policy would be uploaded on the website of the company and any change in the benchmark rates and schedule of charges for existing customers would be uploaded on the web site of the Company
c) Changes in the rates and schedule of charges for existing customers would also be communicated to them through any modes of communication such as website updation, email, letters, SMS, etc.
This policy shall be reviewed on a yearly basis in January of each year. However, depending on requirements, the reviews may be done at shorter intervals. Any changes in the policy except as required by legal and regulatory changes shall be made with the approval of the Board.
Schedule Of Charges - Business Loans (Secured - Property) & Home Loans ~Rs. 35 Lacs (Micro Laps).
|Sl. No||Charges||Rack Rate|
|1||Overdue charges/ Additional Interest on delayed payments||2% per month on the outstanding dues + GST|
|2||Loan cancellation charges (after disbursement has been done by the lender)||1% of the Loan Amount & GST if any incurred|
Floating Rate: Nil
Fixed Rate: The Loan cannot be foreclosed during the Lock-in-Period. Post Lock-in-Period, foreclosure charges of 6% plus applicable taxes, shall be applicable
Floating Rate: Nil
Fixed Rate: The Borrower shall not prepay any or all of the outstanding dues under the Loan during the Lock-in-Period. Any premature prepayment, after the Lock-in- Period, shall be subject to payment of prepayment charges of 6% of the amount prepaid under the Loan plus applicable taxes.
Upon such prepayment as referred above, the instalments under the Loan payable as per the Repayment Schedule shall stand reduced proportionately
|5||Cheque Bounce Charges (Financial Bounce Only)||Rs.500 + Taxes|
|6||Cheque or NACH Replacement/ Swap Charges||Rs.500 + Taxes|
|7||Conversion fees from Fixed to Float Rate||1.5% of the loan outstanding or as announced by the Lender from time to time.|
|8||Non-encumbrance certificate||As per actuals|
|9||Document Retrieval charges before Closure||Rs.750 + applicable taxes|
|10||Foreclosure statement Charges||Rs.1000 + applicable taxes|
|11||List of Documents held in custody||Rs.500 + applicable taxes|
|12||Duplicate Statement / Certificate||Rs.250 + applicable taxes|
|13||Duplicate No Dues certificate||Rs.250 + applicable taxes|
|14||For Issue of duplicate copy of Agreement.||Rs.500/-|
|15||Custodian Fee for keeping property documents in closed loans beyond 1 month of closure||Rs.500 per month + applicable taxes|
|16||Visit Charges for dues Collection||1st visit Rs. 250 and 2nd visit onwards Rs.500 + applicable taxes|
|17||CERSAI filing charges as per rules of CERSAI||Rs.100 + applicable taxes|
|18||Dunning letters (overdue) per Month||Rs. 100 + GST|
|19||Loan Recall letter||As per actuals|
|20||Arbitration||As per actuals|
|21||Sec 138 Filing||As per actuals|
|22||Any other Pricing/Fee Approval not mentioned in the grid||NA|