Home
About UsLeadership & GovernanceRegulatory & Compliance
Business LoansMSME FinanceVehicle LoansWorking Capital
PoliciesGrievance RedressalDisclosuresCustomer Awareness
Investor Relations
Careers
Contact Us
Get In Touch
Back to Policies

Policies

Interest Rate
Policy

Naveen Finance Pvt. Ltd. follows a Board-approved Interest Rate Policy that governs the determination and communication of interest rates and charges applicable to all loan products and facilities offered by the Company.

Interest rates are determined based on risk-based pricing principles and are communicated transparently to every customer prior to loan sanction.

RBI Regulatory Requirement: In accordance with RBI Master Directions for NBFCs, the interest rate charged by the Company is in compliance with applicable regulatory guidelines. The Company does not charge excessive or usurious rates inconsistent with its Board-approved Interest Rate Policy.

Types of Charges

The following charges may be applicable to loan products offered by Naveen Finance, as disclosed in the loan agreement and Key Fact Statement:

Processing Fee

A one-time non-refundable fee charged at the time of loan disbursement for processing the loan application and associated administrative activities.

Documentation Charges

Charges levied for documentation, stamp duty, legal verification, and other documentation-related activities as applicable.

Penal Charges for Delayed Payments

Additional charges levied on overdue EMI amounts in the event of non-payment or delayed payment beyond the due date, as disclosed in the loan agreement.

Bounce Charges

Charges applicable when an ECS/NACH mandate or cheque is dishonored due to insufficient funds or any other reason.

Foreclosure / Prepayment Charges

Charges applicable if a borrower repays the entire outstanding loan amount before the end of the loan tenure, as per applicable RBI guidelines and loan agreement terms.

Legal or Recovery-Related Expenses

Charges relating to legal proceedings, recovery efforts, or other costs incurred by the Company on account of default or dispute, recoverable from the borrower as per agreement terms.

Interest Rate Determination

Interest rates applicable to each borrower are determined on a risk-based pricing model taking into account the following key parameters:

Cost of funds and weighted average cost of borrowing
Credit profile and credit score of the borrower
Repayment capacity and income profile of the applicant
Nature, purpose, and tenure of the loan product
Loan-to-Value (LTV) ratio and security offered
Risk assessment parameters and internal credit scoring
Prevailing market conditions and benchmark rates
Regulatory guidelines and applicable directives
Operational costs and administrative expenses
Historical repayment behavior of the borrower

Transparency & Disclosure Commitments

Naveen Finance is committed to ensuring complete transparency in the communication of all interest rates and charges applicable to its loan products:

Interest rates are communicated to customers at the time of loan application and confirmed in the sanction letter
All applicable charges are disclosed in the Key Fact Statement (KFS) provided before loan execution
No hidden charges or unauthorized deductions are levied without prior customer disclosure and consent
Changes to interest rates or charges are communicated to customers in advance through appropriate channels
The Annual Percentage Rate (APR) is disclosed as required under RBI Digital Lending Guidelines
Customers are provided with a complete repayment schedule at the time of loan disbursement

Penal Charges Advisory

In accordance with RBI guidelines, penal charges are not capitalized and are levied as a flat charge on the overdue amount. The Company does not use penal charges as a revenue-generating mechanism. Customers are encouraged to maintain repayment discipline to avoid penal charges and adverse credit impact.