Interest Rate Model

The interest rate applicable to any particular kind of loan will be determined with reference to the following factors:

  • The Asset Liability management Committee will from time to time decide the interest and yield to be charged for each product
  • The rate of interest shall be determined based on the cost of borrowed funds, tenor of loan, liquidity conditions prevailing in the market, cost of operations, credit risk arising from the borrower or pool of borrowers and the targeted minimum profit margin
  • The customer level credit risk premium as mentioned above shall be based on credit and default risk of the customer as assessed from profile & risk rating of customer, earning and repayment ability of the customer, nature and value of primary and collateral securities, repayment track record of the customers, external ratings of the customers , industry trends, Credit Bureau ratings amongst other factors
  • The rate of interest for the same product and tenor availed during same period by different borrowers need not be standardized. It could vary from borrower to borrower depending upon consideration of any or combination of above factors. The annualized rate of interest would be intimated to the customer. The interest rates would be offered on fixed, floating, variable basis. The reference rates, viz Long Term Reference Rate (LTRR) and Short Term Reference Rate (STRR) for the floating rates would be reviewed on a periodic basis and revised interest rates will be intimated to the customer.
  • The reference rates and other charges applicable would be hosted and updated on the web site from time to time
  • In case of staggered disbursements, the rate of interest would be subjected to review and the same may vary according to the prevailing rate at the time of disbursement or as may be decided by the Company
  • Besides normal interest, the company may levy additional/penal interest for delay or default in making payments of any dues. These additional or penal interests may vary for different products.


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Important Notice

Note : We would like to inform you that we do not accept cash for any transaction.

It has come to our notice that unknown third parties, who are not affiliated with Aditya Birla Finance Limited are forging/mis-selling loan products using our name, brand or logo (explicitly and/or implicitly). Aditya Birla Finance Limited may not have any control over such any third party use of our name and therefore cannot be held responsible for any unauthorised offer, products or services which is made by forging/misusing/faking our brand name. Anyone relying on any such information without verifying and confirming the same with Aditya Birla Finance Limited shall do so at their own risk and liability as to cost and consequences thereof. We also recommend that you do not disclose your personal or financial details to anyone approaching you and claiming to be on behalf of us, unless identity of the person is established or the communication is verified with one of the branches or telephone numbers stated herein.

If you receive a product/ loan proposal from anybody with a name similar to Aditya Birla Finance Limited or claiming to be from Aditya Birla Finance Limited or Birla Global Finance Limited or Birla Finance Limited or any other name which exhibits any connection with Aditya Birla Group or if you have any doubts about such proposal, please feel free to contact Aditya Birla Finance Ltd. immediately on +91 84259 66666. Aditya Birla Finance Limited highly recommends that you ignore any suspicious product/ loan proposals. On no account should you transfer any money without properly verifying and establishing the identity of the entity involved. We once again request you to examine product/loan proposals cautiously and carefully before entering into any transaction with such entities.


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