Interest Rate Policy

This policy, approved by the Board of Peristyle Securities & Finance Private Limited, sets out the model used to determine interest rates, processing fees and other charges, as required by the Reserve Bank of India.

1. Factors that determine the rate

The rate of interest is arrived at after considering:

• Cost of funds — the weighted average cost of borrowings and equity;
• Operating costs — sourcing, underwriting, technology, servicing and collections;
• Credit risk premium — based on the borrower's credit history, bureau score, income, existing obligations and repayment track record;
• Tenure and loan size, and prevailing market conditions.

2. Current range

• Rate of interest: 0.5% – 1% per day, based on your CIBIL score and existing liabilities.
• Processing / administrative fee: 5% – 10% of the loan amount (administrative charges) + applicable GST.
• Penal charges: as specified in your key fact statement; they are not compounded or added to the rate of interest.
• Foreclosure: nil — no prepayment or early closure charges.

The rate offered to each borrower, along with the Annual Percentage Rate (APR) and every other charge, is disclosed in the Key Fact Statement before the loan is accepted. See a sample KFS.

3. Principles

• Interest is calculated on the outstanding principal on a reducing-balance basis.
• Different borrowers may be offered different rates based on their risk profile, but the same criteria apply to all.
• No charge outside those disclosed in the KFS is levied at any stage.
• Any change in rates or charges applies only prospectively, with prior notice.

4. Review

The Board reviews this policy periodically. The current version is always available on this website.