1. Objective

This Interest Rate Policy lays down internal principles and procedures for determining interest rates and other charges on loans and advances offered by Jacaranda Capital Limited, in accordance with the Reserve Bank of India (Non-Banking Financial Companies — Responsible Business Conduct) Directions, 2025 and other RBI directions requiring NBFCs to adopt an interest-rate model and to ensure that rates are not excessive.

2. Interest Rate Model

The rate of interest for each loan shall be arrived at taking into account the following components:

• Cost of funds: the weighted average cost of borrowings and shareholders' funds.
• Operating costs: the cost of origination, servicing, technology and administration.
• Credit risk premium: determined by the risk gradation of the borrower and the product.
• A reasonable profit margin, having regard to market conditions and competition.

3. Gradation of Risk

The credit risk premium applicable to a borrower shall depend on, inter alia:

• Borrower profile: income level and stability, occupation, financial standing and banking habits.
• Credit history: credit bureau score and past repayment track record with the Company.
• The nature and purpose of the loan, its tenure, and the loan-to-value ratio where secured.
• The quality and enforceability of any collateral or security offered.
• Industry, geography and other portfolio-concentration considerations.

4. Interest Rate Ranges and Disclosure

Annualised interest rates for the Company's lending products shall ordinarily fall within a range approved by the Board from time to time. The applicable annualised rate, the approach for gradation of risk and the rationale for charging different rates to different categories of borrowers shall be disclosed in the application form and sanction letter, and published on the Company's website. Any change in rates shall be updated on the website and applied prospectively.

5. Penal Charges

In line with the RBI's instructions on fair lending practice regarding penal charges in loan accounts:

• Any penalty for non-compliance with material terms, if levied, shall be treated as a penal charge and not as penal interest added to the rate of interest.
• Penal charges shall be reasonable, commensurate with the non-compliance, non-discriminatory within a product category, and shall not be capitalised (no further interest shall be computed on such charges).
• The quantum and reason for penal charges shall be disclosed in the loan agreement, the KFS (where applicable) and the sanction letter in bold, and communicated whenever levied.

6. Other Charges

Processing fees, documentation charges, cheque / mandate bounce charges, foreclosure / prepayment charges (where permitted) and other applicable charges shall be as per the schedule of charges approved by the Board, disclosed upfront to the borrower and published on the website. Foreclosure charges shall not be levied where prohibited by RBI directions (including on floating-rate term loans to individual borrowers for non-business purposes).

Review of this Policy

This Policy shall be reviewed by the Board of Directors at least once a year, and earlier whenever changes in applicable law or Reserve Bank of India directions so require. Any amendment shall take effect upon approval by the Board.