Interest Rate Policy

The Reserve Bank of India (“RBI”) 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 2nd January 2009, requires all Non-Banking Financial Companies (“NBFC”) to follow certain procedures with respect to the setting of interest rates for loans to customers.

Ford Credit India Private Limited (‘FCIPL’), a company registered as a non-deposit taking NBFC vide certificate of registration number: N-07.00802 having its registered office at Ford Credit India Private Limited, 3rd Floor, Urban Square, S.F.No.- 278/3A & 9A, VOC Street, Gandhi Nagar, OMR - Kottivakkam, Chennai - 600041, Tamil Nadu, adheres to the below guidelines for charging interest rates to its customers:

Rate of Interest:

FCIPL fixes its rate of interest based on the cost of funds, inherent risk of business and cost of operation. FCIPL operates to a risk appetite framework through a structured approach to identifying risks, minimizing exposure and monitoring performance. Broadly, the risk of this business depends on the risk associated with the Customer, and FCIPL has responsible lending standards, taking account of various factors like loan to value ratio, tenure of the loan, internal and external costs of funds, subvention from manufacturer, operating cost, cost of maintaining minimum reserve, cost of maintaining exposure limits, risk premium, usage of the vehicle and affordability of the Equated Monthly Instalments. The present rate of interest charged to our customers does not exceed 13% p.a. and payable monthly.