INTEREST RATE POLICY
INTEREST RATE MODEL
The rate of interest charged to Chola customers is linked to an Internal Benchmark(IB) which
is based on average cost of funds raised from banks and from money markets.
The mark up over the IB varies from 315 bps to 2015 bps depending on the risk profile of the
customer, asset class (commercial vehicle, car, tractors, construction equipment, machinery
etc.), asset type (new/used), margin money offered by customer, etc. Accordingly, the
present rate of interest charged to our customers is in the range of 12.6% to 29%
(annualized rate) payable monthly, subject to permissible deviations.
Note: The rates of interest will be different for different categories of borrowers based on the individual credit and risk profiles and as per the interest rate model of the Company.