Interest Rates and Service Charges

This page lists the interest rates and every charge Clear Lend Capital Private Limited levies on a business term loan. The exact rate, all charges and your total repayment are shown in the Key Facts Statement (KFS) you receive before you accept a loan.

·  Rate range: 21% to 35% per annum. In some cases, based on risk, the rate may go up to 38% per annum

·  Type: Fixed for the whole loan

·  How it is applied: On the reducing balance, with monthly rests

·  Repayment: Equal monthly instalments (EMI)

·  Tenure: Typically 5 to 15 months, and up to 24 months

Our interest rate model sets your rate from our cost of funds, our operating costs, a margin, and a risk premium for your business. We place each borrower in a risk band, so a borrower with a lower risk gets a lower rate. We look at:

·  the size and stability of your business and its cash flows;

·  how long you have been in business, its profitability and the capital you have put in;

·  your existing loans and monthly obligations;

·  your repayment record and credit information report; and

·  the loan amount and tenure, your type of business and industry, and our assessment of the promoters.

Different borrowers pay different rates because their risk differs. We tell you your rate in the sanction letter and the Key Fact Statement before you accept. If you ask, we explain in simple terms why your rate was fixed in that band.

·  Processing fee: Nil

·  Documentation, legal and valuation charges: Nil

·  Insurance: Nil

·  Security creation and registration: Nil. Our loans are unsecured

·  Penal charge for late or missed payment: 5% per annum on the overdue amount, for the actual period it is overdue

·  Interest on the overdue amount: The contracted interest rate continues on the unpaid amount until it is paid

·  Cheque or ECS return charge: ₹500 for each returned cheque or ECS transaction, plus applicable taxes

·  Prepayment or foreclosure: Allowed at any time, with no lock-in period. Charge of up to 5% of the principal amount prepaid, plus applicable taxes

·  Stamp duty: As required by the State Stamp Act on the loan documents, payable by the borrower. At present we pay it and do not charge it to you

·  No-dues certificate: Nil

·  Loan statements: Nil

·  Replacing post-dated cheques: Nil

·  Switching between fixed and floating rates: Not applicable. All our loans are at a fixed rate

Penal charges are for not keeping to the loan terms, such as paying late. They are separate from the interest rate. They are never added to the interest rate, and no interest is charged on them. If we levy one, we tell you the amount and the reason.

·  Charges are shown before tax. GST and other taxes are added where the law requires them.

·  We do not levy any fee or charge that is not disclosed in your KFS without your clear consent.

·  If we change an interest rate or charge, the change applies only to future loans and to your loan only from the date we give you notice. We tell you in advance in a language you understand.

For questions, write to hello@clearlend.in or call +91 98804 44726 between 11:00 am and 6:00 pm, Monday to Saturday. We call you only from 1600300409. That number is for outgoing calls and cannot take incoming calls.