Interest rates policy

Lexus Financial Services is a sub-division of Toyota Financial Services India Ltd. a registered NBFC in India.

  • Toyota Financial Services Limited – Policy with respect to the calculation of interest rates on loans

    The Reserve Bank of India (“RBI”) has pursuant to circular number DNBS.PD/CC.No.95/03.05.002/2006-07 dated 24 May 2007 and Notification Number DNBS. 204/CGM(ASR)-2009 dated 2 January 2009, the RBI requires all Non Banking Financial Companies (“NBFC”) to comply with certain procedures with respect to the setting of interest rates for loans.

    Toyota Financial Services India Limited, a company registered as a non-deposit taking NBFC vide certificate of registration number: N-02.00253 having its registered office at Toyota Financial Services India Ltd. 1st Floor, Centropolis, No. 21, Langford Road, Richmond Town, Bangalore – 560 025 dated 2nd May 2012 shall adhere to the following guidelines for charging interest rates to its clients:

  • Interest Rate Information

    The rate of interest charged by us would depend on certain relevant factors which inter alia shall include , internal and external costs of funds, operating cost, cost of maintaining minimum reserve, cost of maintaining exposure limits, risk premium, tenor of the loan, collateral and quantum of the loan. The Company shall disclose the interest rate applicable to any loan transaction a customer wishes to enter into with us in the loan documentation we submit to the customer and we shall disclose the annual interest rate applicable to each loan in the document that creates the loan. The customer is not compelled to sign a loan unless the interest rate is acceptable to the customer.

  • Rate of Interest

    The Company decides on the rate of interest on the basis of gradation of risk. In addition, there is a regular review exercise of the interest rates and product features with the competition offerings.

    An additional risk premium may be incorporated in the pricing which is based on the credit risk associated with the customer which is a function of his credit history, bureau information, internal rating etc along with other factors like the borrowers income etc.

    While computing the interest rates, the above mentioned factors would vector on the outcome of interest rate offered to prospect customer. Hence, it should be noted, that the interest rate applied is different from customer to customer. Accordingly, the present rate of interest charged to our customers is in the range of 10.5% to 18% p.a. payable monthly.