Interest Rate Policy

1. Purpose

This Policy lays down the framework Evam Finance follows in determining interest rates, processing fees and other charges on its loan products, in line with the RBI Master Direction — NBFC (Scale Based Regulation) Directions, 2023.

2. Rate Range

The annualised interest rate on Evam loans ranges between [TO BE PROVIDED BY EVAM]% – [TO BE PROVIDED BY EVAM]% per annum, depending on the product, tenor and borrower risk profile.

3. Factors Considered

• Cost of funds (including incremental borrowing cost).
• Operating cost and reasonable margin.
• Credit risk premium: borrower profile, business cash flows, collateral, prior repayment behaviour.
• Tenor of the facility and any concessional rates linked to climate impact.

4. Gradation of Risk

Borrowers are categorised based on internal scoring of cash flow stability, collateral quality, project execution risk and sectoral risk. Pricing is differential and reasoned, and the rationale is recorded in the credit appraisal note.

5. Disclosure to Borrowers

The applicable rate, frequency of reset (if floating), and method of calculation (reducing balance, etc.) are disclosed in the sanction letter and Key Fact Statement. Any change is communicated prospectively with reasonable notice.

6. Penal Charges

Penal charges, where levied, are treated as penal charges and not as penal interest, as per RBI's 18 August 2023 directions. See our Penal Charges Policy.

7. Review

This Policy is reviewed by the Board (or its Committee) at least once a year.