Abridged Fair Practice Code of UBS Finance India Private Limited
(Formerly known as Credit Suisse Finance (India) Private Limited)
Introduction
Introduction
UBS Finance India Private Limited ("UBS Finance" or the "Company") is a private limited company incorporated under the provisions of the Companies Act, 1956 and is a non-deposit taking Middle Layer non-banking financial company registered with the Reserve Bank of India vide certificate of registration number B-13.01951 dated 19th December 2024.
It is, and shall be the policy of UBS Finance to make available all financial products offered by the Company, to eligible qualified applicants, without discrimination on the basis of race, caste, color, religion, sex, marital status, age or handicap, directly or through subsidiaries and/or associates.
UBS Finance's policy is to treat all the clients consistently and fairly. UBS Finance shall adopt all the best practices prescribed by RBI from time to time and shall make appropriate modifications, if any, necessary to this policy to conform to the standards so prescribed. The employees/representatives of UBS Finance will offer assistance, encouragement and service in a fair, equitable and consistent manner. UBS Finance will also communicate its Fair Practices Code (FPC) to its clients by uploading the FPC on its web-site.
Additional guidelines on fair practices mandated by RBI vide notification dated March 26, 2012, for NBFC-MFI and for NBFCs engaged in lending against collateral of gold jewellery are not applicable to UBS Finance, since it does not engage in such activities.
The board of directors and the management team of UBS Finance are responsible for implementing the FPC, and also to ensure that its operations reflect its strong commitment to all the stakeholders for offering in a fair and equitable manner, the various financial services and products including lending as UBS Finance may provide from time to time and that all UBS Finance employees/representatives shall be aware of this commitment.
Product & Features
Product & Features
UBSFI offers to its borrowers
(a) Term Loan and (b) Credit line-based lending (CLBL) linked to fixed Rate of interest and/or floating rate.
Floating rate loans shall normally be linked to 1m Certificate of deposit (CD) or any other external benchmark rate as may be adopted from time to time, whereby such external benchmarks shall be as published by FBIL – Financial Benchmark India Limited. Fixed rate loans are not linked to any external benchmark; the interest rate for such loans is based on the various costs that are incurred by the Company as outlined below.
Based on few factors, the indicative rate of interest charged to customers shall in the range of 6% to 24% per annum, excluding of fees, commission, other charges etc. Also, as the company offers bespoke structuring and pricing to each customer, the interest rate may vary from customer to customer even though some of them may have common features.
Interest Rate Model
Interest Rate Model
UBSFI offers to its borrowers (a) Term Loan and (b) Credit line-based lending (CLBL) linked to fixed Rate of interest and/or floating rate. Floating rate loans shall normally be linked to 1m Certificate of deposit (CD) or any other external benchmark rate as may be adopted from time to time, whereby such external benchmarks shall be as published by FBIL – Financial Benchmark India Limited. Fixed rate loans are not linked to any external benchmark; the interest rate for such loans is based on the various costs that are incurred by the Company as outlined below.
Interest on such loans, as stipulated shall be payable either at monthly, quarterly, or annual rests as agreed with the customer for each loan.
The applicable rate of interest charged by UBSFI will depend on various factors including but not limited to the following:
- Funding cost or ability to access funds based on competitive rates;
- Cost of capital, cost of attributed equity, risk costs, expected loss, risk weighted assets, internal ratings, loan purpose (including re-investment of loan proceeds through group companies, capital market exposure and non-capital market exposure);
- Existing/potential assets under management maintained by the borrower with lender’s group companies, external competitive environment and any other related factor(s);
- Margin or spread;
- Quality and diversification of collateral provided by borrower/security provider;
- Credit quality of the borrower as assessed by internal parameters;
- Tenor and quantum of facility;
- Market conditions of the sector in which the borrower/security provider operates;
- Additional security/comfort provided by borrower (e.g.: guarantee);
- Monetary policies of regulator and other regulatory considerations;
- Domestic, international, economic, political conditions, inflation and other relevant macro factors.
Based on the above, the indicative rate of interest charged to customers shall in the range of 6% to 24% per annum, excluding of fees, commission, other charges etc. Also, as the company offers bespoke structuring and pricing to each customer, the interest rate may vary from customer to customer even though some of them may have common features.
Gradation Of Risk
Gradation Of Risk
The risk premium shall be decided on a case-to-case by the company based on factors such as type and quality of collateral security (debt or equity), borrower profile, type of loan, credit worthiness of the borrower, nature of the Product, relationship history with borrower/borrower group, repayment and interest servicing capacity, borrower’s other financial commitments, past repayment, tenure of the loan in case of an existing borrower, end use/purpose of the loan, internal and external ratings/score assigned to the borrower by credit bureau and related agencies.