Interest Rate & Penal Charges Policy
SKYRISE CREDIT & MARKETING LIMITED
Transparent methodology for determining interest rates and risk assessment
Introduction
The Reserve Bank of India ("RBI") vide Master Direction – Reserve Bank of India (Non-Banking Financial Companies – Responsible Business Conduct) Directions, 2025 has stipulated at Chapter III - Fair Practices Code for all applicable Non-Banking Financial Companies ("NBFCs") and has directed all NBFCs to lay down appropriate internal policies and procedures in determining rates of interest, processing fees, other charges and display the rates of interest and the approach for gradation of risks on their website.
The objective of adopting and implementing this policy is to institute fair and transparent dealings in the lending business in accordance with the aforesaid regulatory requirements and the Fair Practices Code adopted by Skyrise Credit and Marketing Limited (hereinafter referred to as "SCML" or the "Company").
The said Interest Rate and Penal Charges Policy broadly outline the Interest Rate Model, Applicable penal charges in case of delay in repayment of loan and the Company's approach of risk gradation in this regard.
This Policy also aligns with RBI instructions on Key Fact Statement (KFS), transparency in digital lending, and customer protection measures as applicable from time to time.
Objective
The main objectives of this Policy are to:
- 1Ensure that interest rates are determined in a manner as to ensure long term sustainability of business by taking into account the interests of all stakeholders
- 2Develop and adopt a suitable model for calculation of interest rate
- 3Enable fixation of interest rates which are reasonable: both actual and perceived
- 4Ensure that computation of interest is accurate, fair and transparent in line with regulatory guidelines and market practices
- 5Charge differential rates of interest linked to the risk factors as applicable
- 6Decide on the principles, methodology and approach of charging spreads to arrive at final rates charged from customers
Review and Approval of the Policy
This policy is approved by the Board of Directors of the Company and the Company has adopted the Policy on Interest Rate and Penal Charges taking into account relevant factors such as cost of funds, margin and risk premium and determining the rate of interest to be charged for loans and advances.
Any revision in the Policy shall be reviewed by the relevant internal units and approved by the Board of Directors.
This Policy shall always be read in conjunction with extant RBI guidelines, directives, circulars and instructions.
Disclosures
As per extant regulations and in terms of this Policy, the following disclosures shall be made:
- The rate of interest and the approach for gradation of risks and the rationale for charging different rates of interest to different categories of borrowers shall be disclosed by the Company to the borrower or customer and will be communicated explicitly in the sanction letter.
- The rate of interest and the approach for gradation of risks shall also be made available on the website of the Company. The information published on the website shall be updated whenever there is a change in the rate of interest.
- The annualized rate of interest shall be disclosed so that the borrower is aware of the exact rates that would be charged in relation to the loan amount.
- Any change in the rate of interest or other charges, as applicable, shall be made prospectively and the same shall be adequately disclosed in the loan agreement, sanction letter and Key Fact Statement ("KFS").
- The quantum and reason for Penal charges shall be clearly disclosed to the customers in the loan agreement, Key Fact Statement, in addition to rate of interest and other charges being displayed on the Company's website.
Principles for Determining Interest Rates
The Company lends money to its customers mainly through digital platforms and has various products to cater to the needs of different categories of customers. The interest rate of each product is decided from time to time, giving due consideration to the following factors:
Cost of Capital
The Company has been infused with equity share capital, and accordingly the cost of such equity share capital shall be taken into consideration.
Weighted Average Cost of Borrowing
Since the Company borrows funds from various banks, financial institutions and other external lender(s), the weighted average borrowing cost, as well as costs incidental to those borrowings shall be taken into consideration.
Risk Premium
Risk related to loss of credit due to short tenure of loan, nature of facility, ticket size, geographical condition, customer segment, sourcing channels, stability in earnings, past repayment track record, credit reports, etc.
Opex Cost
Includes employee expenses, office and infrastructure related fixed and variable costs, operations costs, sales and marketing expenses, etc.
Profit Margin
Fair profit margin is added to arrive at the lending rate. The company may fix different margins for different customers, considering the risk of default.
Additional Factors Impacting Interest Rate
Rate of Interest
Rate of Interest shall be offered based on the parameters as explained above. Our loans range from INR 5,000/- to INR 1,00,000/- with repayment periods starting from 7 days to 12 months for Unsecured consumer loans and 1,00,000 to 25,00,000 for LAP and 25,000 to 5,00,000 for EMI Loans.
The Board of Directors, in its meeting held on 19th March, 2026, reviewed and approved the revised Interest Rate and Penal Charges Policy. The Board further resolved to update the interest rate structure as follows:
Pay Day Loan
0.10% to 1.00% per day
Business Loan
8% to 25% per annum
Loan Against Property (LAP)
12% to 15% per annum
EMI Loan
24% to 365% per annum (max tenure: 6 months)
The Company shall ensure that interest rates, including for short-tenure or high-risk products, are reasonable, transparent, and commensurate with the risk profile and cost structure, and do not result in unfair or excessive burden on borrowers.
Types of Interest Rate
Fixed Interest Rate
In fixed rate loans, lenders charge a constant personal loan rate throughout the tenure. Here the total interest payable remains fixed.
Floating Interest Rate
Floating or variable personal loan interest rates are susceptible to fluctuating economic conditions and may be revised as per the repo rate.
Currently, all loans offered by SCML to its customers are at Fixed Interest rates.
Penal Charges in Loan Accounts
The Company shall ensure that Penalty, if charged, shall be for non-compliance of material terms and conditions of the loan agreements by customers. It shall not be levied in the form of 'Penal Interest' that is added to the rate of interest being levied on the loans and advances.
No Capitalization: There shall be no capitalization of Penal Charges (i.e. no further interest computed on such charges). However, this will not affect the normal procedures for compounding of interest in the loan account.
Events of Default Attracting Penal Charges:
- When the repayment of loan amount becomes overdue.
- Breaches to any other important or material terms and conditions of the loan contract.
Penal Charges Rate
1.25% per day of outstanding principal loan amount
- The Company shall display the quantum and reason for penal charges to the customers in the loan agreement and/or Key Fact Statement (KFS) as applicable.
- The applicable penal charges, as updated from time to time, shall be displayed on the Company's website.
- The Company shall ensure that the applicable penal charges are clearly communicated to the borrowers, whenever reminders for non-compliance of loan terms are sent.
- Any instance of levy of penal charges and the reason therefore shall also be appropriately communicated to the borrowers.
Unregistered NACH Charges
Up to Rs. 500
Other Fees and Charges
Besides interest, other financial charges may include:
These fees and charges may vary based on the loan type, exposure limit, expenses incurred, and customer segment. All such fees and charges shall be clearly communicated to the customer by way of a sanction letter, KFS, financing documents and the schedule of charges.
Loan Cancellation, Waiver & Foreclosure
Loan Cancellation (Free Look Period)
If a borrower wishes to exit the loan after it has been sanctioned, he/she can do so within 3 days of loan disbursement which shall be the free look up period. The principal amount and other applicable charges will have to be paid. However, no penalty shall be charged during such period.
Waiver/Refund
No claims for refund or waiver of charges / penal charges / additional charges for loan documentation, portfolio monitoring, recovery of loan or for other shall normally be entertained by SCML and it is at the sole discretion of the Company to deal with such requests, if any.
Foreclosure and Part Prepayment
- Foreclosure of the facility shall not attract any charges; however, the borrower shall be liable to pay interest at the contracted rate up to the date of final repayment.
- Part pre-payment of the facility is strictly not permitted.
Communication to Customer
The Company shall communicate the effective rate of interest to customers at the time of sanction / availing of the loan through the acceptable mode of communication. Interest Rate Policy would be uploaded on the website of the company and any change therein would be uploaded on the website of the Company.
Changes in the rates and charges for existing customers, if any, would be communicated to them through various modes of communication such as on the website, digital platform and/or via email, letters, SMS, etc.
The company would ensure that there is no change during the tenure of the loan for such loans which had already been contracted with customers.
Amendments to This Policy
The Board of Directors is authorized to make appropriate changes to this Policy taking into account changes in the money market scenario in the Country which includes the upward / downward revision in interest rates applicable to various loan products and the relevant charges applicable for such loan products.
Questions About Interest Rates?
If you have any questions about our interest rate policy or penal charges, please contact us: