Interest Rate Policy

1. IDF Financial Services Pvt. Ltd. (Brand Name: Salary Baba)

The Reserve Bank of India (RBI) through its notification DNBS.204/CGM (ASR)-2009 dated January 2, 2009, and the Master Direction DNBR.PD.007/03.10.119/2016-17 dated September 1, 2016, directs NBFCs and their Boards to review and implement internal interest rate models that factor in the cost of funds, margin, and risk premium. IDF Financial Services Pvt. Ltd. ("Company"), operating under the brand "Salary Baba", complies with these guidelines and has formulated this Interest Rate Policy in line with the Fair Practices Code.

2. Disclosure

The Company's interest rate determination process—including applicable rates and charges—is transparently disclosed on its official website and shared with customers during the loan process.

3. Interest Rate

• This policy is approved by the Board of Directors and incorporates key factors: cost of funds, margin, and risk premium.
• Rates vary by borrower based on risk profile, credit score, and operational costs.
• Loan amounts range from ₹5,000 to ₹1,00,000 with tenures between 61 and 365 days.
• The indicative APR range for the product is 15% to 35% per annum, depending on borrower profile and loan characteristics.
• All loans are Fixed Rate and repaid through EMIs or bullet repayment. Interest is payable on the due date; penal interest applies for delays, as specified in the loan agreement.

4. Fees & Charges

• Borrowers pay a processing / origination fee, typically around 10% of the sanctioned loan amount, plus applicable taxes.
• GST is currently 18% on the processing fee, and is borne by the borrower as per prevailing law.
• For illustration, on a sample loan of ₹10,000, the total deduction towards processing fee and GST is ₹1,180, resulting in a net disbursal of ₹8,820.
• Pre-closure charges: No Charges.
• Prepayment charges: No Charges.
• Additional charges may apply for EMI returns, rescheduling, or special services, as per the schedule of charges.

5. Customer Communication

The final interest rate, applicable fees, and charges are clearly communicated to the borrower at loan sanction through a Sanction Letter and loan documentation. Borrowers receive a copy of the signed loan agreement after disbursal.

6. Eligibility

• Applicants must meet age, KYC, and banking requirements as specified by the Company.
• Minimum monthly salary: ₹40,000.

7. Amendment

This policy may be revised or updated at any time with the approval of the Board of Directors. All changes, once approved, take immediate effect.