Approach to Risk Gradation

The interest rate applicable to your facility is determined through our Company’s comprehensive interest‑rate model which considers a variety of relevant factors, including the cost of funds, target margin, tenure of the product, and a risk premium appropriate to the nature and quality of the portfolio.

In accordance with our interest‑rate policy:

• We adopt a risk‑gradation framework based on objective criteria; this framework does not discriminate on the basis of the borrower’s nature or identity.
• For each product segment we have established a range of internal rates of interest, as set out in our interest‑rate policy.
• The exact interest rate for each borrower is determined individually by our sourcing team, based on an assessment of product risk and the borrower’s profile, including income stability, credit history, credit score, and the quality of any underlying collateral.

This structured methodology ensures that interest rates are determined in a manner that is objective, consistent, aligned with our internal policy, and in compliance with applicable regulatory guidelines.