Approach of gradation risk- The decision to give loan and the interest rate applicable to each loan account is assessed on case to case basis, based on multiple parameters such as the type of asset being financed, borrower profile and repayment capacity, borrower’s other financial commitments, past repayment track record if any, the security for the loan as represented by the underlying assets, loan to value ratio, mode of payment , tenure of the loan ,geography(location) of the borrower, end use of the asset etc. Such information is so collated based on the borrower’s inputs and field inspection by the company officials.

The rate of interest is arrived at based on the weighted average cost of funds, administrative costs, risk premium and profit margin.