In order to ensure its standards of transparency, in conformity with the stipulations of the RBI's directives, Cisco Systems Capital (India) Private Limited has adopted the following interest rate policy. This Policy applies to clients whose loans or advances are booked in Cisco Systems Capital (India) Private Limited.Interest Rate Policy
The interest rate for the loans to be charged to the client/borrower will be decided keeping in view the RBI guidelines relating to regulation of excessive interest charged by NBFCs.
Interest rates would be intimated to the customers at the time of sanction / availing of the loan. The rates of interest for the same product and tenor availed during same period by different customers need not to be standardized, since Cisco Systems Capital (India) Pvt. Ltd. has adopted a risk-based approach for client classification for the purpose of determining applicable rate of interest, which differ for each client, primarily based on risk factors such as entity structure, industry, networth, leveraging, and nature of proposed loan.
Interest rate for each customer will be based on the following broad parameters:
The final lending rate for various products offered by Cisco Systems Capital (India) Private Limited will be arrived at after taking into account management reputation, company history, credit and default risk in the related business segment, historical performance of similar customer, profile of the borrower, tenure of relationship with the borrower, repayment track record of the borrower in case of existing customer, subventions available, deviations permitted, future potential, group strength, overall customer yield, nature and value of primary and collateral security, etc. Such information is gathered based on information provided by the borrower, credit reports, 3rd party agencies etc..
Indicative rate of interest applicable w.e.f. Feb 2012 to each category of client for loan denominated in Indian Rupees are as below: (Basis Points / per annum)
|Loan or Advance for more than 3 month but less than 12 month||1000||1500||2300|
|Loan or Advance for more than 12 months||1100||1400||2300|
Above rate of interests are indicative and the management of the Company reserve right to change the same from time to time based on the market conditions and internal credit policies.