Interest Rates & Charges

1. Interest Rate Structure

2. Factors Affecting Interest Rates

2.1 Customer Profile Factors

• Credit Score: Higher credit scores (750+) get better rates
• Income Level: Stable and higher income reduces risk premium
• Employment Type: Salaried employees may get preferential rates
• Existing Relationship: Repeat customers may get loyalty benefits

2.2 Loan Specific Factors

• Loan Amount: Higher amounts may qualify for better rates
• Loan Tenure: Shorter tenures generally have lower rates
• Security/Collateral: Secured loans have lower interest rates
• Purpose of Loan: Education loans typically have lower rates

3. Processing Fees & Charges

3.1 Mandatory Charges

• Processing Fee: 1% - 4% of loan amount (varies by loan type)
• Documentation Charges: ₹500 - ₹2,500
• Verification Charges: ₹200 - ₹1,000
• Stamp Duty: As applicable per state regulations

3.2 Optional Services

• Loan Insurance: 0.5% - 1% of loan amount annually
• EMI Protection Cover: ₹99 - ₹999 per month
• Prepayment Facility: No charges after 12 EMIs
• Cheque/ECS Bounce: ₹500 per instance

4. Interest Calculation Method

4.1 Reducing Balance Method

We use the Reducing Balance Method for interest calculation, which means interest is calculated only on the outstanding principal amount.

4.2 Annual Percentage Rate (APR)

APR includes interest rate plus all applicable fees and charges, giving you the true cost of borrowing. APR is calculated as per RBI guidelines.

5. Rate Change Policy

5.1 Fixed Rate Loans

• Interest rate remains constant throughout loan tenure
• EMI amount stays the same for entire repayment period
• Suitable for customers preferring predictable payments
• Generally 0.5% - 1% higher than floating rates

5.2 Floating Rate Loans

• Interest rate linked to Agrim Fincap Base Rate
• Rate changes with market conditions and RBI policy changes
• Customer notified 30 days before any rate change
• Generally lower than fixed rates initially

6. Special Offers & Discounts

6.1 Customer Categories

• Existing Customers: Up to 0.5% rate reduction
• High Credit Score (800+): Up to 1% rate reduction
• Professional Categories: Doctors, CAs, Engineers - Special rates
• Women Borrowers: 0.25% concession on applicable rates

6.2 Seasonal Offers

• Festival season special rates (Diwali, New Year)
• Processing fee waivers during promotional periods
• Zero processing fee for loans above certain amounts
• Cashback offers on digital loan applications

7. Prepayment & Foreclosure

7.1 Prepayment Policy

• Partial Prepayment: Allowed after 6 months, minimum ₹5,000
• Full Prepayment: Allowed anytime with 7 days notice
• Prepayment Charges: Nil after 12 months for personal loans
• Business Loans: 2% - 4% if prepaid within 12 months

7.2 Benefits of Prepayment

• Significant reduction in total interest outgo
• Improved debt-to-income ratio
• Enhanced creditworthiness for future loans
• No foreclosure charges after completion of 12 EMIs

8. EMI Calculator Guidelines

Use our online EMI calculator to estimate your monthly payments:

9. Rate Updates & Communication

9.1 Rate Change Notification

• 30 days advance notice for floating rate changes
• SMS and email communication to registered numbers
• Updated rate card available on website
• Customer service support for rate queries

9.2 Transparency Measures

• All charges disclosed in loan agreement
• No hidden fees or surprise charges
• Clear explanation of rate calculation
• Regular customer communication about policy changes