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Statutory disclosures

Policies, codes and the escalation path.

Published under the Reserve Bank of India's Master Direction for Non-Banking Financial Companies and the Reserve Bank – Integrated Ombudsman Scheme, 2021. Board-approved and reviewed annually.

Draft for compliance review. Figures, names, addresses and registration numbers throughout are placeholders and must be replaced with Kovid Finance's actual particulars before publication.

Interest Rate Policy

Version 3.0Approved TBCNext review TBC

Adopted pursuant to the RBI's directions requiring NBFCs to lay down a board-approved interest rate model and to disclose the rationale for the rates charged. Rates are risk-based, not uniform, and every factor considered is set out below.

  1. Interest rate model

    The rate applicable to a borrower is arrived at by adding a risk premium to our cost of funds and operating cost. The rate is expressed on a reducing balance basis and is stated in the sanction letter and the Key Facts Statement as an annualised percentage.

  2. Factors determining the rate

    The following factors are assessed for every proposal. No single factor is determinative.

    • Cost of borrowed funds and the tenor of the facility
    • Credit and default risk in the relevant segment
    • Business vintage and stability of cash flows
    • Credit bureau record of the entity and its promoters
    • Nature and value of security or collateral offered
    • Industry, geography and end use of funds
    • Regulatory capital requirement attributable to the exposure

  3. Range of rates

    Rates are subject to revision. The prevailing band for each product is published on our Rates and Charges page and communicated individually at sanction.

    Business Loan (unsecured)16% – 26% p.a.
    Working Capital Line14% – 22% p.a.
    Invoice Discounting0.9% – 1.8% per month
    Personal Loan15% – 24% p.a.

  4. Fees and other charges

    All charges are disclosed before sanction. No fee of any kind is collected prior to sanction.

    Processing fee1% – 2%
    Foreclosure, after 6 monthsNil
    Foreclosure, within 6 months2%
    Instalment bounce charge₹500
    Penal charge on overdue2% per month

  5. Penal charges

    Penal charges are levied on the overdue amount only, are disclosed as charges rather than as an addition to the rate of interest, and are not capitalised. No further interest is computed on penal charges.

  6. Communication and revision

    Any change in the rate of interest or in charges is applied prospectively and communicated to the borrower in writing. This policy is reviewed by the Board at least annually and is available on our website and at every office.

Issued by

Kovid Finance Private Limited · CIN U67120RJ1993PTC007199 · RBI Certificate of Registration B-10.00134 · Registered office: 4th Floor, City Mall, Kota, Rajasthan 324007. This document is approved by the Board of Directors and supersedes all previous versions.