Interest Rate Policy

CredOnTime is a brand of [[LEGAL-TBD]]. All loans on the CredOnTime platform are provided by Chand Capital Services Ltd ("the Company"), CIN U74899DL1995PLC072509, incorporated on [[LEGAL-TBD]], with registered office at [[LEGAL-TBD]], and registered as NBFC with RBI bearing registration No. 14.01556. Pursuant to approved Fair Practice Code and as per RBI (Non-Banking Financial Companies – Responsible Business Conduct) Directions, 2025, the Board is required to lay out appropriate internal principles and procedure in determining interest rates, processing, penal and other charges.

The purpose of this Policy is to articulate a comprehensive, Board-approved system for determining interest rates and pricing components applicable to all loan products offered by the Company. This Policy governs all types of loans—payday loans, short-tenor loans, consumer loans—and is applicable irrespective of whether loans are sourced directly, through branches, through LSPs, or via DLAs. The Policy is binding upon all parties involved in loan origination or servicing.

The Board has approved and adopted an interest rate model according to which the interest charged is arrived at after considering inherent credit and default risk in the product and the clients, regulatory changes, carrying cost, operating cost or any other relevant factor such as prevalent market lending rates in the industry, etc.

The Company provides pay day loans. Our interest rates are determined in a manner that is non-discriminatory, transparent and consistent across customers in similar risk categories.

The interest rate charged to the borrower is disclosed in the sanction letter and allied documents. Our rate of interest is standardized in the range 0.4% to 1.1% per day. Any change in interest rate shall be prospective and duly communicated to the borrowers. Interest shall always be communicated in annualised percentage terms (APR). Borrowers shall receive clear disclosure in the Sanction Letter, Loan Agreement and Key Fact Statement of the total cost of credit.

The Company has adopted an interest rate model considering various factors such as holistic assessment of credit risk, borrower credit record, operational costs, expected loss rates, tenure of the relationship, past defaults, risk-adjusted return expectations, market conditions, regulatory prescriptions and portfolio diversification objectives. The Company provides instant eligibility assessments with AI based system.

The intent behind penal charges is to inculcate credit discipline and not for revenue enhancement. Standard charge of Rs. 500 every month (excluding GST) shall be charged in case of default. The Company shall charge penalty as 'penal charges' and not as 'penal interest'. The Company shall not capitalise the penal charges. The quantum and reason for penal charges are disclosed in the loan agreement and Key Facts Statement. The sanction head may reduce charges depending on situation and circumstances of borrower.

Interest rate charged is calculated on the principal amount only. The Company shall charge Processing Fee, GST, Penal Charges (if any), prepayment charges (if any) and any other fee/charge as specified in the sanction letter and/or Loan agreement separately.

This Policy shall be subject to review in accordance with RBI master directions, circulars, guidelines and notifications. In case of any change the same shall be updated on the website promptly.