Interest Rate Policy
Transparent, Fair & Competitive Pricing
Interest Rate Policy
At InstantRupya, we believe in transparent and fair pricing. This Interest Rate Policy outlines our approach to rate determination, ensuring competitive rates while maintaining regulatory compliance and sustainable lending practices.
Policy Principles
Our interest rate determination follows these core principles:
Transparency
- Clear disclosure of all rates and charges
- No hidden fees or costs
- Annual Percentage Rate (APR) disclosure
- Simple interest calculation explanation
- Prepayment charges upfront disclosure
Fairness
- Non-discriminatory pricing
- Risk-based assessment
- Equal opportunity for all customers
- No predatory lending practices
- Compliance with RBI guidelines
Competitiveness
- Market-aligned pricing
- Regular benchmark analysis
- Special rates for loyal customers
- Volume-based discounts
- Seasonal promotional rates
Rate Determination Factors
Credit Score
CIBIL/Experian score impact on rates
Income Profile
Employment type and income stability
Loan Amount
Higher amounts may attract better rates
Loan Tenure
Shorter tenures may have lower rates
Market Conditions
RBI rates and economic factors
Types of Interest Rates
We offer different interest rate options to suit customer needs:
Fixed Interest Rate
- Remains constant throughout loan tenure
- Predictable EMI amounts
- Protected from market fluctuations
- Suitable for long-term planning
- Typically 0.5-1% higher than floating
Floating Interest Rate
- Linked to external benchmark (RBI repo rate)
- Changes with market conditions
- May offer lower initial rates
- Passes benefit of rate reductions
- Reset frequency: Quarterly
Hybrid Rate
- Fixed for initial period, then floating
- Best of both worlds
- Common: Fixed for 1-3 years initially
- Suitable for uncertain rate environment
- Conversion flexibility available
Special Rate Programs
Prime Customer
Best rates for excellent credit scores
Loyalty Discount
Reduced rates for existing customers
Professional Rate
Special rates for doctors, engineers, CAs
Corporate Program
Bulk discounts for corporate employees
Note: Special programs are subject to eligibility criteria and may be withdrawn without prior notice.
Rate Reset & Revision Policy
Reset Frequency
Floating rates reset quarterly
Notice Period
30 days notice for rate changes
Conversion Option
Fixed to floating conversion allowed
Documentation
Revised rates documented in addendum
Rate revisions are based on external benchmark changes and regulatory guidelines
Penal Interest & Charges
Additional charges applicable in specific situations:
Late Payment
2% per month on overdue amount
Cheque Bounce
₹500 per bounced instrument
Default Interest
3% above normal rate post-default
Prepayment Charges
2-5% of outstanding amount
Disclosure Requirements
We ensure complete transparency through:
Customer Rights & Grievances
Customers have the right to:
Contact for Rate Queries
For questions about interest rates and charges