1. Preamble / Objective

Venus Barter Private Limited ("the Company") is committed to transparent, fair, and risk-based pricing of its loan products. This Interest Rate Policy ("Policy") is formulated in compliance with RBI Master Direction on Scale Based Regulation for NBFCs (2023, as amended), RBI guidelines on Fair Lending Practices – Penal Charges (August 18, 2023), and other applicable circulars.

The Policy outlines the model for determining interest rates ensuring reasonableness, risk gradation, and full disclosure to borrowers. Interest rates are deregulated by RBI and are determined through a Board-approved framework.

2. Scope

This Policy applies to all lending products, primarily unsecured personal loans offered through the VMoney digital platform (up to ₹2,00,000).

3. Interest Rate Model & Key Factors

The Board shall approve the interest rate model considering the following factors:

Cost of Funds: Weighted average cost of borrowings plus operational costs.
Operating Expenses: Administrative, technology, credit assessment, and collection costs.
Risk Premium: Borrower credit profile including CIBIL score, income stability, employment type, repayment capacity, geography, etc.
Margin: Reasonable return on equity and business sustainability.
Tenor & Terms: Loan tenure and contractual terms.
Market Conditions: Prevailing benchmark rates, competition, and regulatory environment.

Interest is charged on a reducing balance basis unless specified otherwise. Penal charges are separate, non-compounding, and disclosed upfront.

4. Range of Interest Rates

The annualized rate of interest (flat or reducing) for personal loans shall be in the range of 18% to 36% per annum. Actual rates vary based on borrower risk profile.

Borrower Risk Category	Indicative Annualized Interest Rate (Reducing)	Typical Factors Considered
Low Risk (High CIBIL, Stable Income)	18% – 24%	Excellent credit score, salaried, low DTI
Medium Risk	24% – 30%	Average credit, self-employed, moderate DTI
High Risk	30% – 36%	Lower credit score, higher risk indicators

Note: Exact rates are determined case-by-case during credit appraisal and communicated transparently. No rate shall exceed regulatory or usury limits.

5. Disclosure & Transparency Commitments

A Key Facts Statement (KFS) is mandatory for every loan sanction and shall disclose:

Annualized Rate of Interest (ARI)
Effective Annualized Rate / APR
Processing fees, penal charges, and other fees
Total cost of credit

Rates and charges are disclosed in the loan application form, sanction letter, loan agreement, and VMoney app/website. No charge shall be levied without explicit borrower consent.

6. Review & Approval

This Policy shall be reviewed annually or upon material changes in cost of funds, risk profile, or RBI guidelines. Any deviation requires Board approval.

Last reviewed/approved: 16 January 2026

7. Communication

This Policy shall be displayed on the Company's website (www.venusbarter.com), VMoney app, and communicated to customers as required.