Interest Rate Policy

1. APPLICABILITY

This Policy applies to all loan products offered by the Company, including:

• Pay Day Loans
• Personal Loans
• Business Loans
• Vehicle Loans
• Home Loans
• Other loan products approved by the Company from time to time.

2. INTEREST RATE DETERMINATION

The Company follows a risk-based pricing approach. The applicable interest rate shall generally be determined by considering the following components:

Interest Rate = Cost of Funds + Credit Cost + Operating Cost + Risk Premium + Target Return/Margin

The final rate may vary depending upon the product, borrower risk profile, loan amount, tenure, security/collateral, repayment capacity and prevailing market conditions.

3. KEY PRICING COMPONENTS

a) Cost of Funds

Includes interest on borrowings, processing and arrangement costs, legal/documentation expenses, liquidity costs and other costs associated with raising funds.

b) Credit Cost

Includes expected credit losses, provisions, NPAs, write-offs, collection costs, credit monitoring and other costs associated with credit risk.

c) Operating & Administrative Costs

Includes employee costs, technology and infrastructure, office expenses, regulatory and compliance costs, legal expenses, LSP/outsourcing costs, payment-related costs and customer acquisition/marketing expenses.

d) Risk Premium

Additional margin based on the credit and other risks associated with the borrower, product and portfolio. Factors may include credit history, repayment capacity, bureau information, loan tenure, ticket size, delinquency trends and other relevant risk parameters.

e) Target Return/Margin

A reasonable margin shall be maintained to ensure the Company's financial sustainability and appropriate return on assets, while considering capital requirements and business risks.

4. RISK-BASED PRICING

The Company may classify borrowers into different risk categories based on its approved credit assessment framework. Different interest rates may be applied to different risk categories based on objectively identifiable factors.

Pricing shall be fair, transparent and non-discriminatory.