Last updated: April 1, 2026

 

1.    BACKGROUND INFORMATION

Mukut Finvest & Properties Private Limited("the Company") is a Non-Deposit Taking Non-Banking Financial Company ("NBFC") duly registered with the Reserve Bank of India ("RBI") and holds a valid Certificate of Registration ("CoR") bearing Registration No. B-14.02456, issued on September 10, 2001. Pursuant to the extant RBI regulatory framework, the Company is classified as an NBFC–Investment and Credit Company (NBFC-ICC).

2.    REGULATORY REQUIREMENTS

This Interest Rate Model has been framed in accordance with the applicable provisions of the Reserve Bank of India (Non-Banking Financial Companies – Responsible Business Conduct) Directions, 2025, as amended from time to time (the "Master Directions"), and sets out the principles governing the determination and application of interest rates by the Company.

3.    PURPOSE
The Board of a Non-Banking Finance Companies (NBFC's) shall lay out appropriate internal principles and procedures in determining interest rates, processing and other charges.

RBI further advised NBFC's to adopt an appropriate interest rate model taking into account relevant factors and to disclose the rate of interest, gradations of risk and rationale for charging different rate of interest.
With a view to institute fair and transparent dealings in the lending business, the Company has adopted and put in place the following Interest Rate Policy parallel to the company’s Fair Practice Code, in accordance with the Reserve Bank of India (Non-Banking Financial Companies – Responsible Business Conduct) Directions, 2025 as amended and updated from time to time.

Keeping in view the RBI's guidelines as cited above, and the good governance practices being followed by the Company, the following internal guidelines, policies, procedures and interest rate model have been adopted by the Company. The Board of Directors of the Company (“the Board”), while fixing interest rates chargeable from the customers shall be guided by this Interest Rate Policy. In addition to cost factors set out hereunder, the Board shall be guided by the market conditions and various rules and regulations, if any, prescribed by the Reserve Bank of India or such other authority from time to time.

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4.    ESTABLISHING AN INTEREST RATE

4.1    If charged by the company, the interest rate applicable to a particular loan will be determined by reference to number of factors, including:
4.1.1    Risk profile of the borrower;
4.1.2    Tenor of the Loan;
4.1.3    Cost of borrowing funds – Internal as well as external; - The rate of interest charged is also affected by the rate at which the funds necessary to provide loan facilities to customers are sourced, normally referred to as internal cost of funds.
4.1.4    Credit and default risk in the related business segment; As a matter of prudence, bad debt provision cost should be factored into all transactions. This cost is then reflected in the final interest rate quoted to a customer. The amount of the bad debt provision applicable to a particular transaction depends on the credit strength of the customer. Factors such as the complexity of the transaction, the size of the transaction and other factors that affect the costs associated with a particular transaction should be taken into account before arriving at the final interest rate quoted to a customer.
4.1.5    Historical performance of similar kind of customers;
4.1.6    Internal Cost of doing business;
4.1.7    Interest rate offered by other NBFCs in the industry; and
4.1.8    Other factors that may be relevant in each case.

4.2    The rate of interest for the same loan product and same tenor availed during the same period by different customers may vary for each customer based on consideration of any or a combination of above-mentioned criteria.

4.3    The interest rates offered can be on fixed or variable basis. The applicable interest rate shall also be commensurate from the perspective of the fixed versus floating interest rate requirements of the customers and shall have to be decided in view of the benchmarks deliberated in point 4.1.3 above.

4.4    The interest reset period for variable rate loans shall be decided by the Company from time to time.

4.5    The Company shall charge such rates of interest either on a monthly or a quarterly basis for each product/segment.

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5.    Additional/ Default Rate

Loans remaining unpaid beyond their respective due dates shall be subject to penal charges across all product portfolios, as specified in bold in the respective customer agreements.

Any service charges, prepayment charges as charged to the borrower disclosed in the customer agreements.

6.    DISCLOSURES

As per the extant regulations the following disclosures shall be made to the borrower:

a)    There shall be appropriate disclosure of the rate of interest and the approach for gradations of risk and rationale for charging different rate of interest to different categories of borrowers in the Borrower Agreement.
b)    The annualised rate of interest shall be disclosed to the customers.
c)    Any change in the interest rate or other charges shall be made prospectively and the same shall be adequately disclosed in the loan agreement.
d)    The rate of Interest for various class of assets as revised from time to time shall also be displayed on Company’s website.
e)    Approach for gradation of risk has been elaborated in our Fair Practice Code Policy.
 
7.    AMENDMENT TO THE POLICY

The policy may be amended from time to time by the Board of Directors.

 

8.    APPLICABILITY

The policy shall be effective from