a. The following will be the components of loan pricing
The total interest rate paid by the Borrower will be a combination of A and B. Please see the sample calculation for how interest and fees will be charged and the impact of interest and fees on Annualised Percentage Rate (APR).
b. The Lender will get a fixed interest rate as decided by MicroGraam based on market rates and other factors.
MicroGraam's Service Fee will be charged as a percentage of the loan amount availed by the borrower and will be added to each EMI.
d. MicroGraam's Processing Fee will be charged as a percentage of the loan amount availed by the borrower. The fee will be added to the first EMI to be paid by the Borrower.
e. While currently, no late payment penalty or fee is charged, MicroGraam may choose to charge late fees or penalties on late repayments of loans availed in the future.
Credit appraisal of individual Borrowers is done through a scorecard-based approach. The following are the key factors that make up the scoring methodology:
Based on the score, the prospective Borrower is assigned to a risk grade as follows: Grade A (Low Risk - 3 Stars), Grade B (Medium Risk - 2 Stars) and Grade C (High Risk - 1 Star). This can guide the Lender in deciding whether or not a loan should be extended to a Borrower.