Interest Rate Model Policy
Eight Finance Private Limited is a NBFC registered with RBI and is in the business of providing Credit Facilities to its eligible customers for Corporate purpose. https://kodo.in, herein referred to as “Kodo” is a property of and operated by Eight Finance Private Limited, for providing the aforementioned services to borrowing entities. The Reserve Bank of India (RBI) through its notification DNBS. 204/CGM (ASR)-2009 dated January 2, 2009 has directed the boards of all Non-banking financial companies (NBFC) to approve a rate of interest model for the various loan products being provided to borrower customers taking into account relevant factors such as cost of funds, margin and risk, premium paid, etc. The rates of interest and the approach for gradations of risk and rationale for charging different rate of interest to different borrowers are to be disclosed to borrowers at the time of application and communicated explicitly.
In compliance to RBI directives, the Interest Rate Model is as given below -
Eight Finance (KODO) has its own model for arriving at the rate of interest and other charges to be levied onto borrowers based on the following factors -
The credit management team at Eight Finance has derived at an interest rate range up to 24% to be charged on a case-to-case basis to borrowers availing the credit facility from Eight Finance.
Additional charges for late repayment, processing fee, Annual fee, Card replacement fee, foreclosure charges etc. may be levied on the borrowers from time to time. Also GST would be collected at the applicable rate from time to time. The charges will be clearly mentioned in the Facility documents. Eight Finance team will take steps to advise borrowers regarding charges before approval of Credit facility. Any revision in these charges would have a prospective effect and will be communicated to the borrower.
Claims for refund or waiver of charges/penal interest/additional interest would normally not be entertained by Eight Finance, and it is at the sole discretion of Eight Finance to deal with such requests. Genuine refund claims are processed by Eight Finance and any additional amount received in addition of due amount is refunded to borrowers.
This policy is approved by the board of directors at Eight Finance and will be subject to revision in future.