INTEREST RATE POLICY 

1.INTRODUCTION:1.As per the extant guidelines issued by the Reserve Bank of India, the Board of each NBFC shall approve an interest rate model for the Company, taking into account relevant factors such as cost of funds, margin, and risk premium, etc, and determine the rate of interest to be charged for loans and advances.

   2.Further, the directives state that the rate of interest the approach for gradation of risk, and the rationale for charging different rates of interest for different categories of borrowers should be communicated to the borrowers/customers in the sanction letters to them. In view of the same, Three Wheels United (“SIPL”/ “We”/ “Us’ / “Ours”/ the “Company”) has formulated an Interest Rate Policy”.

    3.We have accordingly implemented this Interest Rate Policy (the “Policy”) in order to specify the rates of interest which We nominally charge to Our customers and if there is any specific rationale for charging different rate of interests across different categories of Our customers. This Policy has been taken on record and approved by the Board of Our Company on the 17th day of October 2023 and shall be effective from the same date.

2.APPLICABILITY OF THIS POLICY: ​ 1.This Policy shall be applicable across all the loans and facilities provided by the Company from time to time.

3.REVIEW OF POLICY: ​1.This Policy shall be reviewed from time to time, as and when the Board of the Company is of the view that the standard rates of Interest or the rates of interest which is to be levied amongst various categories of the Borrowers is to be revised. ​

     2.The Board of the Company shall have oversight of this Policy. To ensure effective implementation of this Policy, the Board may delegate certain operational aspects to the legal and compliance head of the Company, or any other authority, as it deems fit.

4.INTEREST RATE MODEL: 1.​We lend money to Our customers through fixed rate loan only which is calculated on a reducing balance basis. The following are the rates of interest levied by the Company for the time being:

          1.20% - Across Delhi and Uttar Pradesh Region

          2.23% - Across all the other states in which We operate. ​

     2.We lend money primarily to individuals to finance electric two – wheeler and three – wheeler vehicles over a tenure ranging from 24 (twenty – four) months to 48 (forty – eight) months. ​

     3.The above rate of interest has been considered after taking into account the cost of capital and the risk involved. We do not levy different rates of interest to different categories of the Customers based on risk gradation. However, there is a difference in the rates of interest levied in Delhi and Uttar Pradesh against the other states in order to gain traction in these two states and to attract more customers by offering competitive rates of interest.

5.PENAL CHARGES LEVIED ON ACCOUNT OF DEFAULT: ​ 1.The Company will collect penal charges / late payment charges for any delay or default in making payments of any dues. ​

      2.These penal charges / late payment charges would be 2% (two percent) per month, in case of loans where repayment is to be done on a monthly basis or 0.067% (decimal point zero six seven percent) in case of loans where repayment is to be done on a weekly/ daily basis of the total overdue amounts. GST or any other tax and levies on the penal charges / late payment charges would be applicable at the prevailing rates. ​

    3.As a matter of fairness and transparency with Our customers, the penal charges shall be calculated on a non – compounding basis.

6.PREPAYMENT CHAGRES / FORECLOSURE CHARGES: ​1.The Company may, at its sole discretion, allow the prepayment of the loan amount subject to certain conditions and on payment of prepayment charges / foreclosure charges by the customer. These prepayment charges / foreclosure charges shall be 2% (two percent) of the amount to be prepaid (in case of pre – payments) and 2% of the entire outstanding amount (including overdue, fines and other charges levied as per the loan agreement and sanction letter/ statement of key facts) in case of foreclosure of loan. GST or any other tax and levies on the prepayment/ foreclosure charges would be applicable at the prevailing rates. ​

We currently do not offer loans at floating rates, however, if We intend to do so at any point in time at a future date, there shall not be any foreclosure charges / pre-payment charges on any floating rate term loans sanctioned to individual borrowers.

7.OTHER FEES/CHARGES: ​1.We generally charges a processing fee on the loan amount disbursed which is in the range of 1.5% to 2%, depending on the type of vehicle, manufacturer of the vehicle, availability of any ongoing offers, etc. The processing fees payable by the customers will be clearly specified in the statement of key facts and the EMI repayment schedule.

8.Any changes in the rate of interest shall only be applicable on a prospective basis and no such changes will be on a retrospective basis.