Interest Rate Policy

This Interest Rate Policy (“Policy”) is formulated and adopted by Harshreejee Finance & Leasing Company Private Limited (“HSFLCL” or “the Company”) in accordance with the Reserve Bank of India (Non-Banking Financial Company – Scale Based Regulation) Directions, 2023 and other applicable guidelines issued by the Reserve Bank of India (“RBI”) from time to time.

This Policy outlines the framework for determining, reviewing, and communicating the interest rates and other charges applicable to the lending operations of the Company.

1. Objective

To ensure a transparent, consistent, and fair approach in determining interest rates and related charges, while protecting customer interests and complying with regulatory requirements.

2. Scope and Applicability

This Policy applies to all loan products offered by HSFLCL, including payday loans disbursed through digital channels such as IMPS, UPI, NEFT, RTGS, and cash repayment modes.

3. Loan Products and Tenure

• Type of Loan: Payday Loan
• Loan Amount Range: ₹8,000 to ₹1,00,000
• Typical Tenure: 30 to 35 days
• Mode of Disbursement: IMPS
• Mode of Repayment: IMPS, UPI, NEFT, RTGS, Cash

4. Interest Rate Framework

• Interest Rate: 1% per day (flat) on principal outstanding
• Interest is calculated daily and is non-compounding
• Uniform rate applicable, subject to internal risk assessment

5. Other Charges

• Processing Fee: 10% of loan amount
• GST: 18% on processing fee
• Example: ₹10,000 loan → ₹1,000 fee + ₹180 GST → ₹8,820 disbursed
• Penal Charges: No additional penalty beyond daily interest
• Third-Party Charges: Currently none; if introduced, will be disclosed

6. APR (Annual Percentage Rate)

The APR is calculated by annualizing the daily interest rate:

APR = 1% × 365 = 365% per annum (excluding fees and taxes)

All charges and APR are disclosed on the Company’s website before loan approval.

7. Disclosure and Transparency

• Interest rates are displayed on the website
• Changes are approved by the Board and updated publicly
• Borrowers receive Key Fact Statement (KFS) and loan agreement details

8. Pricing Governance and Review

• Interest rates are determined by the Board of Directors
• Based on cost of funds, market conditions, and risk profile
• Reviewed annually or as required

9. Customer Segment and Eligibility

Loans are offered only to eligible salaried individuals as per internal risk policies.

The Company does not extend loans to:

• Advocates
• Police/Defence personnel
• Chartered Accountants
• Company Secretaries
• Government employees
• Self-employed individuals or businessmen

10. Communication of Policy

This Policy is published on the Company’s website and made available to customers upon request. All employees involved in lending operations are trained to follow this Policy.

11. Review and Amendment

This Policy shall be reviewed annually or whenever required due to regulatory or business changes. Any amendments shall be approved by the Board of Directors.

12. Approval

Approved by the Board of Directors of Harshreejee Finance & Leasing Company Pvt. Ltd. on __________.

For and on behalf of
Harshreejee Finance & Leasing Company Pvt. Ltd.

Director