Guideline

1. Business Strategy and Business Operations

 1.1 RFL business operations need to be financially sustainable i.e. all expenses shall have to be met from income essentially from interest earned on loans extended in addition to income from investments and fees collected from services extended to customers. The Company may give loan to any Body Corporate(s), firm(s), Individuals, etc.

 1.2 Business Segments

• Retail Lending:

 RFL aims to extend loans, initially, to the available customers. Thereafter, RFL shall increase the ambit to the public for personal loans including Business development and such. The Loan Policy enumerates on the customer segments, purpose of loan, process of loan approval and disbursal, interest rate determination of the loan disbursal and 2 charges to be borne by an individual customer. The detailed loan policy on MSMEs shall be taken up consequently.

• Corporate Lending: The Company can further extend loans to any Body Corporate(s), firm(s), non-individual entities.
• Other Segments / Loan Products: The Committee can further determine product parameters for retail lending and set limits on total book size for each product. The loan policy has been framed in line with the Fair Practices Code prescribed by RBI.

 1.3 Sanctioning Authority

Investment and Lending Committee (herein after referred to as ‘Authority’ or ‘the Committee’) shall be the sanctioning authority. Authority may approve the proposal from any other sector on case to case basis covering the entire spectrum of aspects viz. Purposes, size, interest rate, term, repayment terms, and security required and any other conditions will be as decided by the Committee.

• The sanctions accorded by the ILC shall be placed before the Board in their ensuing meeting for the purpose of review and ratification.
• Any particular loan or any other feature of the Policy can be directly placed before the Board for seeking their approval. 3. Purpose of Loan: 3.1 In the near term, RFL lending business will support the following use cases within the RFL:
• Enable small merchants across the country with access to low-cost working capital for Business enablement of their operations and inclusive growth.

The process ends with the communication of an approval of facility to the customer through a term sheet/sanction letter.

• Loan Application: The customer shall submit a form either at offline or online touch-points to inform the Company regarding the interest in a certain loan product.
• KYC Document Verification: The documents submitted by the customer will be required to be analyzed either using competent technological or human resources.
• Credit Appraisal: This step involves arriving at a decision to provide the loan or not. RFL shall require additional documents such as income statement, PAN, Form16 or other considered necessary from the customer.

2.2 Final decision on Sanction: The final decision to provide the loan or not will remain with RFL after all the previous steps.

2.3 Processing Fee: RFL has decided to charge a processing fee at applicable rates from time to time. Any revision in these charges would be implemented on prospective basis with due communication to customers. These charges would be decided upon by the respective business / Function heads in consultation with Operations, Finance, Compliance and Legal.