1. Preamble
Golu Leasing & Finance Co. Private Limited ("the Company"), CIN U74899DL1992PTC048349, registered office at BM-5, East Shalimar Bagh, New Delhi – 110088, is registered as a Non-Banking Financial Company with the Reserve Bank of India under Certificate of Registration No. B-14.01773. Pursuant to its Fair Practices Code and the RBI's directions on responsible business conduct, the Board has laid down the principles below for determining interest rates, processing, penal and other charges.
2. Purpose and scope
This Policy applies to all loan products offered by the Company, whether sourced directly or through Lending Service Providers (LSPs) and digital lending platforms. It is binding on everyone involved in origination and servicing, and is read with the Approach for Gradation of Risk.
3. Determination of interest rate
The interest rate is arrived at after considering the cost of funds, operating costs, the credit and default risk inherent in the product and the borrower, expected loss rates, tenure, regulatory requirements and prevailing market rates for comparable credit.
4. Interest rate model
The Company offers short-term personal loans. Interest is charged at 0.4% – 1.1% per day on the principal outstanding, as simple interest with no compounding. Rates are non-discriminatory and consistent across borrowers in a similar risk category. The rate is disclosed in annualised terms (APR) in the Key Fact Statement, sanction letter and loan agreement. Any change in rate is prospective and communicated to the borrower in advance.
5. Gradation of risk
The rate offered to a borrower reflects a holistic credit assessment including credit history, income and banking behaviour, existing obligations, loan amount and tenure, past repayment record with the Company and risk-adjusted return expectations. The factors are set out in the Approach for Gradation of Risk.
6. Penal charges
Penal charges exist to encourage credit discipline, not to enhance revenue. A charge of ₹500 per month on default (excluding GST) applies in case of default. It is levied as a penal charge and not as penal interest, is not added to the principal, and no further interest is computed on it. The quantum and reason are disclosed in the Key Fact Statement and loan agreement, and the borrower is informed when it is applied.
7. Other fees and charges
The processing fee (Up to 10% of the loan amount + GST), GST and any other charge are specified in the Key Fact Statement and sanction letter. Prepayment and foreclosure charges are nil. No fee or charge not disclosed in the Key Fact Statement is levied without the borrower's explicit consent. Fees payable to LSPs are borne by the Company, not the borrower.
8. Disclosure
The range of rates and the schedule of charges are published on this website at Rates & charges. Borrower-specific terms are communicated in the Key Fact Statement before acceptance.
9. Review
This Policy is reviewed by the Board periodically, and at least once a year.