Ampire finance

Background and introduction

Ampire Finance Private Limited (hereinafter referred to as “Ampire Finance’ or ‘the Company’ or ‘we’ or ‘us’) is an RBI registered Non-systemically important Non-deposit taking Non-banking Financial company (NBFC-ND-NSI). It provides credit facilities to underserved middle and low income segment customers catering to different needs, including personal loans,  medical loans, education loans, consumer electronic loans, consumer lifestyle loans.

The Reserve Bank of India (RBI) has advised Boards of NBFCs to lay out appropriate internal principles and procedures in determining interest rates, processing and other charges. Considering the above, the following internal guiding principles and interest rate model are laid out by Ampire Finance. This interest rate policy has been framed in line with the Company’s objectives and the guidelines outlined in the RBI Master Direction – Non-Banking Financial Company –Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016 and updated from time to time.

The policy has been duly approved by the Company’s Board of directors and is suitably and periodically reviewed.

Purpose of the Policy

The policy has been framed with the purpose to enable customers to know and understand the methodology for determining the lending rates charged to them and for the Company to maintain transparency in this regard at all times.

Methodology/ Approach for gradation of risk

The rate of interest under each product charged to different customers is decided from time to time, based on the following parameters:

• Cost of Funds
  The cost of funds on the borrowings, as well as costs incidental to those borrowings, considering the average tenure, market liquidity etc.
• Margin for business operation
  Considering the industry trends and practices followed by competitors.
• Operational Expenses
  Operating costs including marketing, acquisition, account management and collections in the business as well as maintaining the stakeholders expectations for a reasonable, market-competitive rate of return.
• Risk profile of customer
  Different information of customers are considered including but not limited to demographics, credit history, geography, product, banking transactions, Income etc..
• Credit risk
  The cost of credit risk depends upon the internal credit assessment of the borrower including probability of default.

Rate of Interest

The annualised rate of interest** charged to borrowers at the time of sanctioning loans shall be within the range as below:

*Based on the Risk Profile of the Borrower

** In exceptional cases, the rate may fall outside the abovementioned range basis the credit assessment of the borrower

The above mentioned range shall be reviewed periodically or as and when required by the Board of Directors, keeping in view regulatory guidelines / directives, intensity of competition in the market, net interest margin target, etc.

The interest rates offered is on fixed rate basis
The interest rate will be annualized so that the borrower is aware of the exact rate that would be charged to him
The annualized interest rate, loan amount and the tenor will be communicated to the borrower in the sanction letter
The changes in interest rates and other charged will be effected only prospectively
Interest would be charged, and recovered on a monthly, quarterly basis or such other periodicity as may be determined by the appropriate authority

Disclosure on the website

This Interest Rate policy will be displayed on the Company’s website in accordance with the requirement of the RBI guidelines.

Review of the Policy

The Board of directors shall periodically review the policy or on a need-basis i.e. in the event of change in regulatory framework or for business or operational need. Such updates / changes to the policy will be communicated to the relevant staff / relevant stakeholders.