Interest Rate

Interest rate is the which is for the use of money. An interest rate is often expressed as an annual percentage of the principal. It is calculated by dividing the amount of interest by the amount of principal. Interest rates often change as a result of and Reserve Bank policies. Interest Rates also changes according to the risk profile of the customer. It is usually charged on the basis of the period for which the money has been borrowed.

Initial Margin Money

Initial Margin Money is the amount paid upfront by the client to The Financer as promoter’s contribution to the purchase finance requirements. Usually 5% to 10% of the limit amount is paid by client as initial margin money.

Handling Charges

Handling charges are charged per invoice. It is usually 0.10% to 0.40% of the invoice value. These handling charges are applied per invoice with a certin minimum of appr Rs 100 per invoice

Processing Charges / Limit Set-up Fee

The processing charges are the charges paid for processing the loan proposal of a client. These are applied only once the client has been approved and limits have been sanctioned. The processing charges are usually 0.25% to 1%.

Facility is valid for one year from the date of sanction/renewal.

Renewal Fees

These charges are levied every year on renewal of the facility. and normally in the range of 0.25% to 1%.

Penalty On Delay In Payment

A Penalty charge is levied on the client if he fails to make the payment within the due date as specified in the sanction letter. An extra 4% is charged over and above the normal rate of interest.