Returns and Fees

Unlike in the case of conventional financial institutions, it is not RITAMBHARA FINCON PVT. LTD. but the Lender who decides how much return they want to earn. Interest rate agreements are entirely between lenders and borrowers across the platform in which RITAMBHARA FINCON PVT. LTD. has no intervention. We recommend that investment should be spread, such that returns are a weighted average of the individual loan parts. This is explained through an illustration below.

For example, on a loan of Rs. 150,000 spread across 3 borrowers, for a period of 1 year at various interest rates; the returns can be as follows:

So, in the example above the lender is earning on an average 16% interest on total investment. Also, Interest earnings can be more or less depending on loan amount split across interest rates. For egs the lender may decide to lend only Rs. 20,000/- @ 12% and increase the amount to Rs. 60,000/- @ 16% and to Rs. 70,000/- @ 20%. This will increase the lender’s average return. At RITAMBHARA FINCON PVT. LTD. what amount to lend at what interest rate is controlled by the lender depending on his/her judgment and negotiating skills.

NON-PAYMENT OF EMI

In case the EMI is not paid on the due date by Borrower(s), additional penal interest applicable as per RITAMBHARA FINCON PVT. LTD. Policy will be applied to the due amount for the duration of delay which Borrowers will be liable to pay directly to their Lender(s). A penal interest of Rs. 100/- for delays upto 10 days and Rs. 250/- for delays of more than 10 days will be payable by the Borrower directly to the Lender. These charges are applicable for each instance of delayed repayment.

Though we do our best to manage the risk at every step, defaults may happen. In such a scenario, RITAMBHARA FINCON PVT. LTD. will facilitate the collection through our in-house collection mechanism and also send a legal notice on behalf of the lender to the borrower. A non-refundable charge of Rs. 100/- per legal notice will be payable by the lender to RITAMBHARA FINCON PVT. LTD..

REGISTRATION FEES

A non-refundable, one-time registration fee of Rs. 1000/- is payable by the lender to RITAMBHARA FINCON PVT. LTD. at the time of Sign Up.

TRANSACTION FEES

A non-refundable 1% transaction fee is charged on the loan amount disbursed. This is levied in two stages – 0.5% is charged at the time of disbursement and 0.5% is payable with the EMI every month.

OTHER FEES

Lender(s) are obliged to maintain details of their loan including statement of accounts. In case, they need RITAMBHARA FINCON PVT. LTD. assistance in this regard then a non-refundable fee of Rs. 500/- per statement of accounts will be charged. RITAMBHARA FINCON PVT. LTD. only facilitates a virtual meeting place between Borrowers and Lenders on its online platform. The decision to lend money to a borrower is entirely at the discretion of the Lenders and RITAMBHARA FINCON PVT. LTD. does not guarantee that a borrower will receive any loans from the Lenders. RITAMBHARA FINCON PVT. LTD. merely aids and assists Lenders and Borrowers listed on its website to make and receive loans and charges a service fee from Lenders and Borrowers for such assistance. RITAMBHARA FINCON PVT. LTD. is only an ‘Intermediary’ under the provisions of the Information Technology Act, 1999.