Interest Rate Policy

Interest Rate Policy (NRB FINANCE)

Effective Date: 29/08/2024
Company: NRB FINANCE, Rajkot – Gujarat
Email: coustmercare@nrbfinance.in

1. Objective

This Interest Rate Policy defines the framework under which NRB FINANCE charges interest on loans. It ensures transparency, fairness, and compliance with the Gujarat Money Lender License rules.

2. Applicable Rate of Interest

  • The standard rate of interest is fixed at 15% per annum (p.a.).

  • The rate is applied uniformly to all loans irrespective of loan type (Gold Loan, Vehicle Loan, or Document-backed Loan).

  • Interest is calculated on a reducing balance method unless otherwise agreed in writing.

3. Loan Tenure & Interest Calculation

  • Minimum tenure: 1 month

  • Maximum tenure: 24 months

  • Interest is calculated monthly and is payable along with the principal as per the repayment schedule.

  • In case of prepayment/early closure, no foreclosure charges shall be levied.

4. Collateral-based Lending

  • Collateral may be taken in the form of Gold, Vehicle, or Documents.

  • Interest rate remains fixed at 15% p.a., irrespective of collateral type.

  • No additional hidden charges on collateral, except actual processing/verification cost.

5. Late Payment & Penal Interest

  • A fixed penalty of ?500 will be charged for every delay/default in repayment, as per Schedule of Charges .

  • Penal charges are not compounded into the principal loan amount.

6. Transparency & Disclosure

  • The interest rate shall be disclosed upfront to every borrower at the time of loan sanction.

  • Loan Sanction Letter and Loan Agreement will clearly mention the applicable rate of interest.

  • Borrower will also receive an Amortization/Repayment Schedule along with the sanction.

7. Review & Modification

  • NRB FINANCE reserves the right to revise the interest rate structure in future, subject to Money Lender Act guidelines.

  • Any changes will be communicated to borrowers 30 days in advance through email/SMS/official notice.

8. Dispute Resolution

  • Any disputes related to interest rate calculations or charges shall be subject to Rajkot, Gujarat jurisdiction only.

 


The Applicant/Customer confirms that he/she has read and understood the terms and conditions of this Policy/Agreement. In case of any difficulty in understanding the contents, the Applicant/Customer shall immediately contact NRB FINANCE during the loan application process for necessary clarification. NRB FINANCE shall not be held liable for any misunderstanding if the Applicant/Customer fails to seek clarification before proceeding with the loan process.