Reserve Bank of India (RBI) has advised Non-Banking Finance Companies (NBFCs) to establish appropriate internal principles and procedures for determining interest rates, processing fees, and other charges. WePayLoan has adopted the following policies and guidelines for its lending business, in line with RBI regulations.
RBI, through various circulars, has instructed NBFCs to lay out internal policies for determining interest rates. In view of these guidelines, WePayLoan has adopted the following principles to ensure good governance and transparency in its lending practices.
1. The base interest rate is calculated based on the weighted average cost of funds, risk premium, administrative costs, and profit margin.
2. Various parameters will be used to assess the base interest rate for each loan account, including:
3. The base interest rate will be periodically reviewed by the ALM Committee.
4. The interest rates may differ for customers with the same product and tenure based on various factors such as risk, security, and financial standing.
5. The borrower will be informed about the loan amount, annualised interest rate, and repayment terms during the loan sanction process.
6. Additional charges such as processing fees, delayed payment interest, and cheque bounce fees will be clearly mentioned in the sanction letter or loan agreement.
7. Interest rates are subject to change based on the company’s perceived risk, and adjustments will be made on a case-by-case basis.
8. Requests for refunds or waivers of charges/penal interest will be handled at the sole discretion of the company.
9. The interest rates are linked to the base rate, which is determined by the weighted average cost of funds, risk premium, and other costs. The markup over the base rate varies between 200 bps and 1300 bps based on customer risk profile, security, and financial standing, with interest rates ranging from 12% to 36% p.a.
Address
Plot no. 9 NSP, Unit No. 701, 7th floor ITL Twin Tower Road, Pitampura City, New Delhi, Delhi
Phone Number
+91 9818402666
info@wepayloan.com
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