GolufinGolu Leasing & Finance
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Policies & disclosures

Approach for Gradation of Risk

The interest rate offered to a borrower, within our published range, reflects an assessment of the risk of that loan. These are the factors we weigh.

Pursuant to the Reserve Bank of India's Fair Practices Code, Golu Leasing & Finance Co. Private Limited publishes the approach by which it grades risk and prices loans within the range of 0.4% – 1.1% per day set out in its Interest Rate & Penal Charges Policy. The assessment is automated, applies the same factors to every applicant, and does not discriminate on religion, caste, gender or any ground unrelated to repayment.

Factors considered

  1. Tenure and structure of the loan. Shorter, single-repayment loans carry different risk from longer instalment products.
  2. Loan amount. The amount sought relative to income and to our published range.
  3. Income and its regularity. Salary credits seen in the bank statement — amount, frequency and consistency.
  4. Banking behaviour. Average balances, bounced debits, overdrafts and how the account is run.
  5. Existing obligations. EMIs and other recurring commitments already drawn against income.
  6. Credit bureau record. Repayment history, enquiries, current delinquencies and overall credit standing.
  7. Repayment record with the Company. How previous loans from us were repaid, if any.
  8. Length of relationship. Repeat borrowers with a clean record are priced differently from first-time applicants.
  9. Nature and stability of employment. Type of employer and continuity of employment.
  10. Verification outcomes. Results of KYC, liveness and bank-account verification during the digital journey.
  11. Demographic and geographic indicators. Used only to the extent they correlate with repayment, never on prohibited grounds.
  12. Cost of funds and operating cost. The Company's own cost of lending to this segment.
  13. Regulatory requirements. Any ceiling, condition or direction issued by the Reserve Bank of India.
  14. Other relevant factors. Considered case by case where they bear on the risk of the loan.

How the grade translates to a rate

Applicants are grouped into risk categories on the factors above. Each category maps to a rate within the published range; borrowers in the same category are offered the same rate. The rate, fee and APR for your loan are stated in your Key Fact Statement before you accept, and do not change during the loan.

Questions about how your rate was decided may be raised with our Grievance Redressal Officer at compliance@golufin.com.