Interest Rate & Lending Policy

Emm Dee R Finance Limited follows a transparent and fair interest rate policy in accordance with RBI guidelines. This policy outlines how we determine interest rates and lending terms for our loan products.

1. Interest Rate Determination

Interest rates are determined based on the following factors:

• Cost of Funds: Our borrowing costs from banks and financial institutions
• Operating Costs: Administrative and operational expenses
• Credit Risk: Borrower's credit score, income stability, and repayment history
• Loan Tenure: Longer tenures may attract different rates
• Loan Amount: Higher amounts may have preferential rates
• Market Conditions: Prevailing interest rate environment

2. Interest Rate Structure

3. Processing Fees and Charges

*All charges are subject to GST as applicable

4. Interest Calculation Method

We use the reducing balance method for calculating interest. Under this method, interest is charged only on the outstanding principal amount. As you repay the loan, the principal reduces, and so does the interest charged.

5. Changes in Interest Rates

• For fixed-rate loans, the interest rate remains constant throughout the loan tenure
• For floating-rate loans, interest rates may change based on market conditions
• Customers will be notified in advance of any changes to floating rates
• Existing customers have the option to switch between fixed and floating rates (subject to charges)

6. Disclosure Requirements

Before loan disbursement, we provide:

• Loan sanction letter with complete terms and conditions
• Clear breakdown of interest rate, processing fees, and other charges
• EMI schedule showing principal and interest components
• Total amount payable over the loan tenure
• Information about prepayment and foreclosure options

7. Eligibility Criteria

8. Grievance Redressal

If you have any concerns regarding interest rates or charges, please contact our Grievance Redressal Officer. We are committed to resolving all queries within 7 working days.