Avanti Finance Customer Service Policy

“Avanti Finance Private Limited wishes to draw the attention of our customers and members of the general public to the prevalence of fraudulent activities being perpetuated by fraudsters and un

ing a website, email ids purporting to be that of Avanti. In the event of receiving any communication, We strongly cautions the public against providing personal information, sending money or disclosing bank details over email, SMS messages etc. to any person claiming to represent Avanti or to have a relationship with Avanti.

Please note that Avanti does not charge any processing fees or any other advance amounts, and does not accept loan applications via email, SMS etc. Accordingly, our .

Members of the general public and our customers are also advised to immediately report any suspicious incident and/or incident of defrauding of money as a result of these fraudulent acts and practices to the authorities in their jurisdiction, i.e. the Police and the Telecommunications regulator, including the Cyber Crime Cell. These incidents can also be referred to Avanti for appropriate action at our end. It is our constant endeavour to provide the best and unparalleled support to our customers.”

1. Introduction

Avanti Microfinance Private Limited (hereinafter referred to as ‘the Company’) has framed the Interest Rate Policy (hereafter referred to as “Interest Rate Policy” or “the Policy”) in accordance with the regulatory requirements specified by the Reserve Bank of India (RBI).

2. Objectives of the Policy

This document aims to establish a framework for determining interest rates, processing charges and other charges. (All charges and rates mentioned herein are exclusive of Goods and Service Tax (GST) or any other applicable tax and the company shall charge and collect such taxes wherever applicable over and above mentioned charges and rates).

3. Methodology for determining an Interest Rate

The guiding principles for determining interest rate are as follows:

1.  The Board of the company shall adopt an interest rate model taking into account relevant factors such as cost of funds, margin and risk premium and determine the rate of interest to be charged for loans and advances. The rate of interest and the approach for gradations of risk and rationale for charging different rate of interest to different categories of borrowers shall be disclosed to the borrower or customer in the electronic application form and communicated explicitly through electronic means.

2.  The rate of interest to be charged for loans and advances will be in the range of 12% to 29% p.a.

3.  The rate of interest shall be arrived at after taking into account relevant factors, such as cost of funds, margin and risk premium, including the following.

• Tenor of the Loan – The rate of interest charged will depend on the term of the loan;
• Internal and External Costs of Funds – The rate of interest charged will also be determined depending on the rate at which funds necessary to provide loan facilities to customers are sourced by the Company, normally referred to as internal cost of funds. From an external cost of funds perspective, the benchmark interest rate that may be used by the Company could be the 10 year Government of India bond rate or any other generally acceptable benchmark rate as adjusted for the rating spreads available in the markets.
• Internal Cost Loading – The interest rate charged will also take into account costs of doing business. Factors such as the complexity of the transaction, the size of the transaction and other factors that affect the costs associated with a particular transaction will also be taken into account before arriving at the final rate of interest quoted to a customer.
• Credit Risk – As a matter of prudence, bad debt provision cost should also be factored into all transactions. This cost is then reflected in the final rate of interest quoted to a customer. The amount of bad debt provision applicable to a particular transaction will depend on the credit strength of the customer.
• Fixed rate versus Floating rate – The applicable rate of interest shall also be commensurate from the perspective of the fixed versus floating interest rate requirements of the customers.
• Periodicity of Interest – Interest will be charged for the period as stipulated in the loan agreement, subject to any modifications thereto as may be agreed by and between the Company and the customer electronically.

5.  The rate of interest is an annualised rate so that the borrower is aware of the exact rates that would be charged to the account.

4. General Provisions

1.  Changes in Terms – The Company shall give electronic notice to the borrower in English language with an option to choose a vernacular language as understood by the borrower of any change in the terms and conditions of the loan, including disbursement schedule, interest rates, service charges, prepayment charges etc. Further, any changes in the rate of interest shall be effected only prospectively and the electronic loan agreement shall contain the necessary provisions in this regard.

2.  Grace Period - Interest will be payable by the customer / borrower on or before the due date stipulated therefor in the loan agreement entered into by the customer / borrower with the Company. However, the Credit Committee of Executives shall have discretionary power to grant a considered grace period to any customer / borrower.

3.  Moratorium - The Company may consider necessary moratorium for payment of interest and repayment of principal amount with proper built in pricing, on a case to case basis

4.  Additional Interest and other Charges - Besides the normal interest, the Company levies additional interest for delays in payment of dues by the customer / borrower or additional interest on other facilities etc (annualised interest on the outstanding balance). The Company may charge other financial charges including processing fees, cheque bouncing charges, pre-payment / foreclosure charges, RTGS or such other remittance charges, commitment fees, charges for services like issuance of “no due certificate”, security swap charges etc along with relevant taxes.

The Company shall not charge foreclosure charges / pre-payment penalties on all floating rate term loans sanctioned to individual borrowers.

5.  Communication of Interest Rate to the Customer – The Company shall convey electronically to the borrower in English language with an option to choose a vernacular language as understood by the borrower, by digital means, the amount of loan sanctioned along with the terms and conditions including annualized rate of interest and method of application thereof and shall keep an electronic record of the acceptance of these terms and conditions by the borrower. The loan agreement shall expressly stipulate the penal interest chargeable for late payment / repayment of dues by the borrower, in bold. The apportionment of the equated monthly instalments (“EMI”) amount towards the principal and interest will also be communicated by the Company to the customer / borrower by way of the repayment schedule.

6.  Waiver of Additional Interest / Financial Charges – Requests by the customer for waiver of additional interest / financial charges would normally not be entertained by the Company and such waiver will be at sole and absolute discretion of the Credit Head or a person of equivalent position, exercised on a case to case basis or any other person that the Board deems fit.

7.  Annualised Rates - The rate of interest shall be annualised rates so that the borrower is aware of the exact rates that would be charged to the account.

8.  Pre-Payment - Pre-payment options available to the customer and the penalty / charges payable for exercise of such option shall be mutually agreed to on a case-to-case basis and communicated to the customer. There will be no pre-payment penalty / charges on Microfinance Loans.

9.  Company Website: The rates of interest and the approach for gradation of risks shall be made available on the web-site of the company and literature issued by it. The information published in the website or otherwise published shall be updated whenever there is a change in the rates of interest.

10.  Though the primary mode of all operations, processes or procedures set in this Policy are electronic or digital in nature the company may at its discretion decide to use physical/written means for all or any points covered in this Policy.

5. Regulatory Reference

This policy is framed as per the following regulatory references and in accordance with leading industry practice: 

1.  Master Direction - Non-Banking Financial Company –Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016

2.  Master Direction – Reserve Bank of India (Regulatory Framework for Microfinance Loans) Directions, 2022

6. Policy Review and Updates

The implementation of this policy shall be monitored and reviewed periodically by the Board of the Company.

This Policy was:

(i) drafted on behalf of the Company by: Mr. Nagaraj Subrahmanya, CRO

(ii) internally reviewed by: Mr. Rahul Gupta, CEO

(iii) approved by the Board of the Company on: March 31, 2022

This Policy comes into effect from April 1, 2022

Annexure – I

Interest rate and other charges framework:

Avanti Finance Whistle blower Policy

“Avanti Finance Private Limited wishes to draw the attention of our customers and members of the general public to the prevalence of fraudulent activities being perpetuated by fraudsters and unscrupulous people who aim to deceive the general public by using the name of Banks, NBFCs and other financial institutions.

This type of fraud may be via email, letters, text messages, facsimile or by using a website, email ids purporting to be that of Avanti. In the event of receiving any communication, We strongly cautions the public against providing personal information, sending money or disclosing bank details over email, SMS messages etc. to any person claiming to represent Avanti or to have a relationship with Avanti.

Please note that Avanti does not charge any processing fees or any other advance amounts, and does not accept loan applications via email, SMS etc. Accordingly, our customers and general public are strongly advised to seek information/clarifications by contacting our business office directly and/or online through https://avantifinance.in/ or call us directly on +91-80-41689310, in the event you receive any such communication.

All official emails from Avanti or its representatives contain the domain name @avantifinance.in and do not contain any other domain name in any other form (like gmail, yahoo etc).
Our Principal Address for Correspondence is:
Registered Address:
Avanti FinanceNo. 456, Ground 1st & 2nd Floor, 4th Block, BDA Layout, Koramangala Extension, Kormangala, Bengaluru 560034
CIN for AFPL: U65929KA2016PTC138355
CIN for AMPL: U65929KA2016PTC138292

Members of the public are hereby advised not to send/receive money to/from such scammers, as Avanti will have NO LIABILITY whatsoever for any and all losses/damages suffered by anyone who falls victim to such scams/letters from fraudsters. We hereby disclaim all such correspondence and messages and warn our customers and the general public to disregard such and to exercise extreme caution at all times.

Members of the general public and our customers are also advised to immediately report any suspicious incident and/or incident of defrauding of money as a result of these fraudulent acts and practices to the authorities in their jurisdiction, i.e. the Police and the Telecommunications regulator, including the Cyber Crime Cell. These incidents can also be referred to Avanti for appropriate action at our end. It is our constant endeavour to provide the best and unparalleled support to our customers.”

Avanti Finance Code of Conduct Policy

“Avanti Finance Private Limited wishes to draw the attention of our customers and members of the general public to the prevalence of fraudulent activities being perpetuated by fraudsters and unscrupulous people who aim to deceive the general public by using the name of Banks, NBFCs and other financial institutions.

This type of fraud may be via email, letters, text messages, facsimile or by using a website, email ids purporting to be that of Avanti. In the event of receiving any communication, We strongly cautions the public against providing personal information, sending money or disclosing bank details over email, SMS messages etc. to any person claiming to represent Avanti or to have a relationship with Avanti.

Please note that Avanti does not charge any processing fees or any other advance amounts, and does not accept loan applications via email, SMS etc. Accordingly, our customers and general public are strongly advised to seek information/clarifications by contacting our business office directly and/or online through https://avantifinance.in/ or call us directly on +91-80-41689310, in the event you receive any such communication.

All official emails from Avanti or its representatives contain the domain name @avantifinance.in and do not contain any other domain name in any other form (like gmail, yahoo etc).
Our Principal Address for Correspondence is:
Registered Address:
Avanti FinanceNo. 456, Ground 1st & 2nd Floor, 4th Block, BDA Layout, Koramangala Extension, Kormangala, Bengaluru 560034
CIN for AFPL: U65929KA2016PTC138355
CIN for AMPL: U65929KA2016PTC138292

Members of the public are hereby advised not to send/receive money to/from such scammers, as Avanti will have NO LIABILITY whatsoever for any and all losses/damages suffered by anyone who falls victim to such scams/letters from fraudsters. We hereby disclaim all such correspondence and messages and warn our customers and the general public to disregard such and to exercise extreme caution at all times.

Members of the general public and our customers are also advised to immediately report any suspicious incident and/or incident of defrauding of money as a result of these fraudulent acts and practices to the authorities in their jurisdiction, i.e. the Police and the Telecommunications regulator, including the Cyber Crime Cell. These incidents can also be referred to Avanti for appropriate action at our end. It is our constant endeavour to provide the best and unparalleled support to our customers.”

Repayment Moratorium Policy of Avanti Finance Private Limited

Avanti's partners are some of the leading social impact organisations in India. Avanti believes that livelihood transformation is possible only with the creation of community owned local capacity. Our partners focused on livelihood creation and have deep expertise. Avanti is privileged to serve our partners, amplifying them to deliver impact at societal scale.

TAvanti uses credit operations as a means to create sustainable local capacity, co-owned by the community. Our vision is to leave communities we engage self sufficient and with agency

Please note that Avanti does not charge any processing fees or any other advance amounts, and does not accept loan applications via email, SMS etc. Accordingly, our customers and general public are strongly advised to seek information/clarifications by contacting our business office directly and/or online through https://avantifinance.in/ or call us directly on +91-80-41689310, in the event you receive any such communication.

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Avanti FinanceNo. 456, Ground 1st & 2nd Floor, 4th Block, BDA Layout, Koramangala Extension, Kormangala, Bengaluru 560034
CIN for AFPL: U65929KA2016PTC138355

vanti believes personal agency, strong community, and local knowledge fuelled by financial services is at the heart of the world shedding the yoke of poverty for good. The vision is a platform where the neediest on the planet can instantly access the credit, capital and financial services they need to thrive at terms on par with those enjoyed by the first billion.

vanti believes personal agency, strong community, and local knowledge fuelled by financial services is at the heart of the world shedding the yoke of poverty for good. The vision is a platform where the neediest on the planet can instantly access the credit, capital and financial services they need to thrive at terms on par with those enjoyed by the first billion.

Frequently Asked Questions on Moratorium during of Covid -19

This type of fraud may be via email, letters, text messages, facsimile or by using a website, email ids purporting to be that of Avanti. In the event of receiving any communication, We strongly cautions the public against providing personal information, sending money or disclosing bank details over email, SMS messages etc. to any person claiming to represent Avanti or to have a relationship with Avanti.

Please note that Avanti does not charge any processing fees or any other advance amounts, and does not accept loan applications via email, SMS etc. Accordingly, our customers and general public are strongly advised to seek information/clarifications by contacting our business office directly and/or online through https://avantifinance.in/ or call us directly on +91-80-41689310, in the event you receive any such communication.

Our Principal Address for Correspondence is:
Registered Address:
Avanti FinanceNo. 456, Ground 1st & 2nd Floor, 4th Block, BDA Layout, Koramangala Extension, Kormangala, Bengaluru 560034

Members of the public are hereby advised not to send/receive money to/from such scammers, as Avanti will have NO LIABILITY whatsoever for any and all losses/damages suffered by anyone who falls victim to such scams/letters from fraudsters. We hereby disclaim all such correspondence and messages and warn our customers and the general public to disregard such and to exercise extreme caution at all times.

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Notice To General Public And Customers

“Avanti Finance Private Limited wishes to draw the attention of our customers and members of the general public to the prevalence of fraudulent activities being perpetuated by fraudsters and unscrupulous people who aim to deceive the general public by using the name of Banks, NBFCs and other financial institutions.

This type of fraud may be via email, letters, text messages, facsimile or by using a website, email ids purporting to be that of Avanti. In the event of receiving any communication, We strongly cautions the public against providing personal information, sending money or disclosing bank details over email, SMS messages etc. to any person claiming to represent Avanti or to have a relationship with Avanti.

vanti believes personal agency, strong community, and local knowledge fuelled by financial services is at the heart of the world shedding the yoke of poverty for good. The vision is a platform where the neediest on the planet can instantly access the credit, capital and financial services they need to thrive at terms on par with those enjoyed by the first billion.

Members of the general public and our customers are also advised to immediately report any suspicious incident and/or incident of defrauding of money as a result of these fraudulent acts and practices to the authorities in their jurisdiction, i.e. the Police and the Telecommunications regulator, including the Cyber Crime Cell. These incidents can also be referred to Avanti for appropriate action at our end. It is our constant endeavour to provide the best and unparalleled support to our customers.”