Fair Practice Code & Interest Rate Policy
Establishing ethical guidelines, non-discriminatory credit standards, and structured interest rate determination for all customer operations.
- Transparent Pricing
- Non-Discriminatory
- Ethical Recovery
1. Fair Practice Code (FPC)
KMS Corporation and its operating subsidiaries are committed to maintaining the highest standards of integrity, transparency, and fairness in dealing with all customers. The Fair Practice Code serves as a benchmark for customer interaction, loan processing, and credit delivery.
Clear Loan Documentation
All sanction letters, interest rate schedules, and terms are provided in plain, clear language with no hidden clauses.
Non-Discriminatory Access
Services and credit facilities are offered without discrimination on grounds of gender, caste, religion, or background.
Time-Bound Processing
Applicants are informed of loan status, required documentation, and verification timeframes at every stage.
2. Interest Rate Determination Model
To ensure fairness and objectivity, interest rates charged across group financial offerings are governed by a standardized rate determination model rather than arbitrary pricing.
The final interest rate charged to a client is calculated after factoring in the primary benchmark rate, cost of operational overheads, tenure, and individual risk premium.
Key Rate Determination Factors
| Component | Description & Impact | Governance Check |
|---|---|---|
| Base Cost of Funds | Reflects prevailing market borrowing costs, capital structure, and liquidity maintenance. | Reviewed Quarterly |
| Operational Risk & Cost | Includes administrative expense, processing costs, technology infrastructure, and compliance. | Audited Annually |
| Risk Premium Gradation | Adjusted based on applicant credit profile, collateral quality, industry exposure, and repayment history. | Dynamic Assessment |
| Tenure & Security Premium | Reflects the duration of credit facility and value/liquidity of provided security or collateral. | Standard Matrix |
3. Approach to Risk Gradation
The risk premium is assessed on a case-by-case basis using standardized credit criteria. Higher risk profiles attract appropriate risk mitigation premiums, while low-risk, well-collateralized clients receive competitive prime rates.
- Applicant Profile: Financial stability, cash flow history, and existing liabilities.
- Collateral Coverage: Marketability, liquidity, and valuation of pledged assets.
- Sectoral Trends: Macroeconomic health of the borrower's industry or business segment.
4. Code of Conduct & Ethical Recovery
KMS Corporation believes in building relationships anchored in respect. Our staff and authorized representatives strictly adhere to ethical recovery practices.
Respectful Communication
All customer communications occur during reasonable hours (9:00 AM to 7:00 PM). Coercion, intimidation, or harassment in any form is strictly prohibited.
Privacy & Confidentiality
Customer personal and financial details are kept strictly confidential and shared only in accordance with statutory compliance guidelines.
Frequently Asked Questions
Rates follow a standardized model that combines the base cost of funds, operational cost, tenure and security, and an individual risk premium based on your profile and collateral.
No. All sanction letters, interest rate schedules and terms are shared in plain language so that you know the full terms before you accept.
Customer communication takes place only during reasonable hours (9:00 AM to 7:00 PM), and always respectfully.
Your details are kept strictly confidential and are shared only in accordance with statutory compliance guidelines.
Have a question about this policy?
Our team is happy to explain any part of the Fair Practice Code or the interest rate model.
