Interest Rate Policy

LTCV Credit Private Limited

Equall is the retail lending brand of LTCV Credit Private Limited, a registered NBFC ("we"). This Policy explains how we set interest rates and charges on our loan products, in line with our Board's obligations under the RBI (Non-Banking Financial Companies – Responsible Business Conduct) Directions, 2025, which require NBFCs to maintain a documented, risk-based pricing framework and to disclose the basis on which rates can differ across borrowers.

We lend to borrowers at a fixed rate of interest, decided at the time of sanction based on the factors set out below.

How We Price a Loan

Every loan we price starts from the same base cost, and is then adjusted for the individual borrower's risk.

Cost-based factors

  • Our cost of funds – what it costs us to borrow, plus the cost of the equity capital we deploy in the business
  • Operating expenses – the day-to-day cost of running the business (people, technology, infrastructure), etc.
  • The cost of holding a liquidity buffer against liquidity risk
  • The return our shareholders expect, balanced against our objective of offering fair, reasonable pricing
  • Prevailing market liquidity and macro-economic conditions

Risk-based factors

  • Credit history and repayment track record, drawn from credit information companies and our own risk-assessment tools
  • Income and employment related information
  • Existing indebtedness and overall repayment capacity
  • Tenor of the facility
  • Geography and other relevant borrower context

A borrower's assessed risk shapes the rate on offer – lower risk means a lower rate, higher risk a higher one. Two customers taking the same product for the same tenor can end up with different rates as a result.

Put together, these factors generally place our annualised interest rate in a range of 15% to 36% per annum, computed on the daily reducing balance and charged at the frequency stated in the loan agreement.

Rates and Charges at a Glance

These figures cover the majority of our digitally sourced fresh portfolio; individual pricing can fall outside this range depending on a borrower's risk profile and related aspects.

ComponentWhat Applies
Loan Amount₹10,000 and above
Tenure3 months and above
Interest Rate15–36% p.a. (fixed, daily reducing balance)
Processing Fee1–10% of loan amount
EMI Bounce Charge₹500 levied on the first bounce in a month
Late Payment ChargeUp to ₹750 three days post due
Penal ChargesLevied as a charge, not as interest, on the overdue principal, graded by length of delay; terms set out in the loan agreement
Foreclosure / Pre-paymentUp to 4% of principal outstanding; no charge during the 1-day cooling-off period after disbursement
APRDisclosed via the Key Fact Statement before sanction; reflects the borrower's actual rate, fees and tenure

GST and other statutory levies apply separately. If a borrower opts for insurance, its cost is charged separately too. Every charge appears in the loan agreement, sanction letter and Key Fact Statement. Any revision applies only to loans sanctioned after that point, and we notify affected borrowers in advance. We may reduce or waive any of these charges in individual cases, at our discretion.

How We Communicate

We share the applicable rate, fees and charges upfront, before the loan agreement is signed, in a simple language which is easy for the borrower to understand. This information sits in the Key Fact Statement, the sanction letter and the loan agreement.

Interest starts accruing from the date we disburse funds, not from the date of sanction or the loan agreement.

If we revise our rates or charges, the change applies only to loans sanctioned after that point, or is communicated to existing borrowers in advance where it affects them, in line with RBI Directions. Borrowers with questions about how their own rate was arrived at can raise this through our regular customer service and grievance channels.

Review

This Policy is approved by our Board of Directors, who oversee our pricing framework and how it plays out for individual borrowers. We review this Policy at least once a year, and sooner if RBI guidance changes or market conditions shift materially enough to warrant it.

Date of last modification of this policy: March 2026