RBI REGISTERED NBFC: B-14.02019 Lord Krishna Financial Services Ltd
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RBI MASTER DIRECTIONS COMPLIANT • 100% TRANSPARENT PRICING

Interest Rate Model and Schedule of Charges

Lord Krishna Financial Services Ltd ("Prest Loans") follows an objective, risk-graded discrete pricing model formulated in strict conformity with Reserve Bank of India (RBI) guidelines. Every customer receives a complete Key Fact Statement (KFS) detailing annualized percentage rates (APR) and all applicable fees prior to loan sanction.

18.00%
LKFSL Reference Base Rate
Core Benchmark for Lending Spreads
12% - 36%
Discrete Risk-Graded APR
Tailored to Borrower Credit Strength
NIL
Foreclosure On Floating Loans
100% Compliant with RBI Directives
Non-Capital
Penal Charges Policy
No Compounding • RBI/2023-24/53

The Interest Rate Determination Model

Our interest rate policy applies to all clients whose facilities are funded directly by Lord Krishna Financial Services Ltd or through co-lending partnerships. Rates are structured systematically across four fundamental pillars.

Pillar 01

Internal & External Cost of Funds

Rates reflect the weighted cost of funds raised from commercial banks, institutions, and money markets, combined with the expected return on equity capital.

  • External institutional borrowing costs
  • Marginal cost of debt & liquidity buffers
  • Target Return on Equity (ROE)
Pillar 02

Cost of Operations & Servicing

Factors in operational expenses for customer sourcing, field verification, automated digital KYC (V-CIP), bureau scraping, underwriting, and collection infrastructure.

  • Digital sourcing & underwriting tech
  • Field inspection & RCU verification
  • Account servicing & collection costs
Pillar 03

Tenor & ALM Matching

Pricing considers loan duration, repayment frequency (Monthly EMI vs Bullet vs Balloon), market liquidity, and Asset-Liability Management (ALM) matching tenor costs.

  • Short-term vs long-term maturity profile
  • Structural liquidity & interest rate risk
  • Equated Monthly Installment (EMI) structure
Pillar 04

Credit Risk & Gradation

As a matter of financial prudence, bad debt provision is factored into every transaction based on credit bureau scores, repayment track record, income cash flow strength, and documentation.

  • CIBIL, Experian & bureau score history
  • Bank cash flows & GST filing turnover
  • Primary & collateral security valuation
BENCHMARK POLICY DISCLOSURE

LKFSL Reference Base Rate & Discrete Model

Lord Krishna Financial Services Limited (Prestloans) maintains a Reference Base Rate of 18% p.a. The spread / margin on loans remains unchanged in normal circumstances; however, the base rate or spread may be calibrated in response to systemic shifts in borrowing costs, changes in cost of operations, or macro-economic events with advance customer notification.

Under our Discrete Interest Rate Model, the rate for the same product and tenor availed during the same period is tailored based on individual creditworthiness, collateral backing, and borrower risk profile rather than a rigid uniform rate.

Fixed, Floating & Variable Options Annualized Percentage Rate (APR) in KFS Co-Lending Aggregate Rate Disclosure
Reference Benchmark
18.0%
LKFSL Base Rate (p.a.)
Applicable as foundational anchor across lending programs with product-specific risk spreads.

Schedule of Charges (SOC) by Product

Browse the exact fee schedule for each loan product below. Prest Loans adheres to zero hidden fees — all processing, documentation, and service charges are expressly stated in the Sanction Letter & Key Fact Statement (KFS).

Loan Cost & Net Disbursal Estimator

Calculate indicative processing charges, GST, documentation fees, and expected in-hand bank disbursal amount in real-time.

Min: ₹50,000 Max: ₹1,00,00,000
6 Months 60 Months
KFS Guarantee: Final loan terms, precise APR, and fee deductions will be presented in your Key Fact Statement (KFS) prior to signing the loan contract.

Estimated Pricing Breakdown

Indicative Interest Rate (APR) 20.0% p.a.
Estimated Monthly EMI ₹25,471
Processing Fee ₹12,500 (2.5%)
GST on Processing Fee (18%) ₹2,250
Documentation & Verification ₹2,950
Total Upfront Deductions ₹17,700
Net In-Hand Disbursal Direct bank credit to borrower
₹4,82,300
Total Repayable: ₹6,11,304 Total Interest: ₹1,11,304

Fair Lending Practice - Penal Charges in Loan Accounts

In compliance with RBI Notification RBI/2023-24/53 (DoR.MCS.REC.28/01.01.001/2023-24)

The Reserve Bank of India has issued clear directives regarding the governance of penal charges to ensure fairness and prevent penal rates from being used as a revenue enhancement mechanism. Lord Krishna Financial Services Ltd strictly abides by these tenets:

No Capitalization

Penal charges for delayed payments are treated strictly as operational penalties and are NEVER compounded or added to the principal balance. No interest is ever calculated on unpaid penal charges.

Non-Discriminatory & Deterrent

The quantum of penal charges is reasonable and strictly proportionate to the default duration. It is formulated as a deterrent to instill credit discipline, not as an income-generating tool.

Complete KFS Intimation

All applicable penal charge rates are explicitly declared in the Key Fact Statement (KFS) and Sanction Letter. Advance reminders are sent to borrowers prior to due dates via SMS, Email, and WhatsApp.

Frequently Asked Questions

Get transparent answers to common questions about our interest rates, fee schedule, and repayment terms.

1. How does Prest Loans determine my loan interest rate?

Prest Loans utilizes an objective Discrete Interest Rate Model anchored against our Reference Base Rate of 18% p.a. The final rate offered depends on four key factors: (1) Cost of institutional funds, (2) Underwriting & operational costs, (3) Loan tenure and repayment schedule, and (4) Individual credit risk based on bureau score (CIBIL/Experian), bank cash flow consistency, income stability, and repayment capacity.

2. What is a Key Fact Statement (KFS) and will I receive one?

Yes, absolutely. As mandated by the Reserve Bank of India, every borrower receives an official Key Fact Statement (KFS) in a standardized, easy-to-read format before executing the loan agreement. The KFS clearly discloses the loan amount, Annual Percentage Rate (APR), processing fees, Net Disbursed Amount, monthly EMI schedule, and all penal/bounce charges.

3. Are there any hidden or unadvertised fees?

Zero hidden fees. Prest Loans maintains complete transparency in all financial dealings. All applicable charges — including processing fees, document handling, stamp duty, and bounce charges — are disclosed on this website, in the sanction letter, and in the KFS. No fees other than those explicitly specified are ever deducted or collected.

4. Can I prepay or foreclose my loan without penalty?

Under RBI regulatory directives, zero foreclosure or prepayment penalty is levied on floating-rate term loans availed by individual borrowers. For fixed-rate contracts, foreclosure charges apply strictly as per the slab-wise rates disclosed in the Schedule of Charges table.

5. What happens if an e-NACH auto-debit bounces?

If an EMI presentation is returned due to insufficient balance, a standard bounce charge of ₹ 850/- (or ₹ 500/- for personal/education loans) is debited. In addition, penal charges accrue on the overdue installment until clearance. We urge borrowers to maintain sufficient funds in their registered bank account on or before the EMI presentation date.

6. What is the difference between ROI and Annual Percentage Rate (APR)?

The Rate of Interest (ROI) is the annual percentage charged on the reducing principal balance. The Annual Percentage Rate (APR) represents the total annualized cost of borrowing, incorporating both the interest rate and upfront one-time charges such as processing fees, documentation expenses, and insurance (if opted). APR gives borrowers a true, all-inclusive metric of credit cost.

7. How do I obtain a Statement of Accounts (SOA) or No Objection Certificate (NOC)?

Digital statements and loan clearance certificates are accessible free of charge through the Prest Loans Customer Portal or by emailing info@prestloans.com. Physical duplicate copies can be issued upon payment of a nominal administrative fee of ₹ 250/- to ₹ 500/- as stated in the SOC.

8. Does the LKFSL Reference Base Rate change over time?

Under normal circumstances, the lending spread remains unchanged. However, the Reference Base Rate (18% p.a.) or loan spread may be calibrated by the Board of Directors if there are systemic variations in institutional borrowing costs, changes in cost of operations, or RBI monetary policy revisions. Any alteration in floating rates is communicated to borrowers in advance.

Need Further Clarification on Interest Rates?

Our dedicated credit advisors and grievance redressal officers are available to assist you.