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

1. OBJECTIVE

To ensure that the Company adopts a transparent, consistent, and fair approach in determining the rate of interest and related charges, in compliance with regulatory requirements and to protect customer interests. It ensures interest rates reflect cost of funds, operational expenses, credit risk, and market conditions while maintaining fairness and transparency in borrower communication.

2. SCOPE AND APPLICABILITY

This Policy applies to all loan products offered by HSFLCL, specifically payday loans disbursed to individual borrowers through digital and electronic channels including IMPS, UPI, NEFT, RTGS, and cash repayment. All lending and related charges determined under this Policy shall be governed by the principles and framework set out herein.

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: Flat 1% per day (charged on the principal outstanding)
• Interest is computed daily for the entire tenure and is not subject to compounding
• The interest rate is applied uniformly to all eligible borrowers; risk parameters such as credit score, repayment history, and employment verification are considered during credit appraisal

5. OTHER CHARGES

• Processing Fee: 10% of the sanctioned loan amount (e.g., ₹10,000 loan → ₹1,000 fee)
• GST: 18% on processing fee (e.g., ₹180 on ₹1,000)
• Total deduction before disbursement: ₹1,180. Net disbursed amount: ₹8,820
• Penal Charges: No additional penalty beyond daily 1% interest
• Third-Party Charges: Currently none; if introduced, will be borne by customer and disclosed transparently

6. COMPUTATION AND DISCLOSURE OF APR

Annual Percentage Rate (APR) is computed by annualizing the daily rate of 1% × 365 days. Indicative APR: 365% per annum, exclusive of processing fees and taxes. All terms including APR are disclosed on the Company’s website prior to availing any loan.

7. DISCLOSURES AND TRANSPARENCY

• Rate of Interest (ROI) displayed on Loan Calculator page of website
• Any change in rate or fee structure approved by Board and updated online
• Borrowers receive Key Fact Statement (KFS) and loan agreement with clear charge details

8. PRICING GOVERNANCE AND REVIEW

Board determines rate of interest and changes based on market trends, cost of funds, and borrower risk profile. Any proposal for modification is considered in Board meetings. Rate structure reviewed annually for compliance and market alignment.

9. CUSTOMER SEGMENT AND ELIGIBILITY

Loans extended only to eligible individual salaried borrowers. Excludes advocates, police/defence personnel, chartered accountants, company secretaries, government employees, self-employed, or businessmen. Company reserves the right to define eligible segments based on internal risk assessment.

10. COMMUNICATION OF POLICY

Policy published on Company website and made available to customers on request. Employees trained to ensure fair and transparent lending.

11. REVIEW AND AMENDMENT

Policy reviewed annually or as required due to regulatory or operational changes.