Interest Rate Policy

Interest Rate Policy

Resilience Engineering Private Limited, operating as KredSetu, is a digital loan marketplace and does not directly determine, fix, or guarantee any interest rate. All interest rates applicable to a loan are set by the regulated lending partner — a registered Non-Banking Financial Company (NBFC) licensed by the Reserve Bank of India — based on their individual credit and risk assessment of each applicant.

This policy describes how interest rates and associated charges are presented, communicated, and disclosed on the KredSetu platform, in accordance with RBI guidelines on digital lending and fair practices.

1. Indicative Rate Ranges

KredSetu displays indicative interest rate ranges on its platform to give customers a realistic expectation of the cost of credit before they apply. These ranges are:

• Personal Loan: 10.75% – 36% per annum
• Instant Loan: 18% – 36% per annum

These ranges reflect the broad spectrum of rates offered by the lending partner based on applicant creditworthiness. The rate applicable to any specific borrower will fall within or may differ from these ranges based on individual assessment.

2. How Final Rates Are Determined

The lending partner applies a risk-based pricing model. The following factors may influence the rate offered to an individual borrower:

• Credit bureau score (CIBIL / Experian): Higher scores typically attract lower rates; scores below 650 may result in higher rates or rejection.
• Income and repayment capacity: Declared income, employment status (salaried vs. self-employed), and existing EMI obligations are assessed.
• Loan amount and tenure: Shorter tenures may attract lower effective interest costs; larger amounts may be subject to stricter assessment.
• Internal risk and fraud checks: Platform-level screening and lender proprietary scoring models.
• Lender underwriting policy: Each NBFC applies its own rules and criteria, which are not controlled by KredSetu.

KredSetu does not have access to or influence over the lending partner's internal pricing algorithm or final rate decision.

3. Charges and Fees

In addition to the interest rate, the following charges may apply and must be disclosed by the lending partner before disbursal:

• Processing fee: Typically 1% – 3% of the loan amount (plus applicable GST), deducted at source at the time of disbursal.
• Prepayment / foreclosure charges: May apply if you choose to repay the loan early. The specific terms are disclosed in the lender's Key Fact Statement (KFS).
• Late payment / penal charges: Applicable on overdue EMIs as per the lender's sanction terms. Typically charged per day of delay.
• GST: Goods and Services Tax is applicable on fees and charges as per prevailing government regulation.

KredSetu does not charge any application fee, processing fee, or upfront cost to the borrower for using the marketplace. KredSetu earns a referral or facilitation fee from the lending partner, which does not affect the rate offered to the borrower.

4. Key Fact Statement (KFS)

In accordance with RBI guidelines on digital lending, the lending partner is required to provide the borrower with a Key Fact Statement before the loan is sanctioned and disbursed. The KFS includes:

• Annual Percentage Rate (APR) — the true cost of credit including all fees
• Exact EMI amount and repayment schedule
• Total amount payable over the loan tenure
• All applicable charges with their conditions
• Cooling-off period details (if applicable)

Customers are encouraged to read the KFS carefully and seek clarification from the lending partner before signing or accepting the loan offer.

5. EMI Calculator — Indicative Tool

The EMI calculator on the KredSetu homepage is provided as an informational tool only. It uses the standard reducing-balance method formula:

EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1)
where P = Principal, r = Monthly interest rate (annual rate ÷ 1200), n = Tenure in months

The result is an estimate only. Actual EMI, interest, and total payable amounts are determined by the lending partner's sanction terms and may differ from the calculator output.

6. Rate Review and Changes

Indicative rate ranges displayed on KredSetu are reviewed periodically and updated to reflect changes in the lending partner's product pricing. Customers are advised to check the current indicative ranges at the time of application.

Once a loan offer is accepted and the KFS is signed, the interest rate is fixed for the loan tenure (unless a floating rate product is explicitly offered by the lending partner, in which case the terms of variation will be described in the loan agreement).

7. Contact for Queries

For questions about the interest rate or charges applicable to your specific loan offer, please contact the lending partner directly or raise a query through KredSetu:

• Email: support@kredsetu.in
• Phone: +91 85959 85522 (Mon–Sat, 10:00 AM – 6:00 PM)
• Lending Partner (Narainsons IFCPL): +91 8700748100

Last reviewed: April 2025. This policy is adopted in accordance with RBI guidelines on digital lending transparency and fair practices for loan service providers.