PENAL CHARGES POLICY
Manikaran Credit and Leasing Company Private Limited (“the Company”) levies fixed penal charges in cases of payment delays, EMI bounces, or operational defaults. These are not penal interest, but fixed administrative and service charges intended to recover additional costs incurred by the Company in managing delayed or failed payments.
The objective of this policy is to ensure operational discipline, transparency, and fairness while maintaining compliance with applicable laws and RBI guidelines. Penal charges represent recovery of genuine administrative expenses such as cheque/NACH bounce handling, payment follow-ups, and communication costs, and are independent of the contracted interest rate of the loan.
Penal charges may apply in cases such as delay in EMI or loan repayment, insufficient account balance on due date, mandate rejection, or non-submission of required documents. These charges are fixed, pre-disclosed, and subject to applicable taxes. The exact amount or rate of such charges will be clearly communicated to the borrower in the loan agreement, sanction letter, or any official communication issued by the Company.
Levy of penal charges shall be without prejudice to the Company’s other legal rights and remedies, including initiation of civil or criminal proceedings for recovery or cheque dishonour, as permitted under law.
Charge Type | Description | Amount (Per Incident) | Basis |
Cheque Bounce | Charge for cheque returned unpaid | ₹1,000 – ₹5,000 | As per agreement |
Cheque Dishonour | Charge for dishonoured cheque | ₹1,000 – ₹5,000 | As per agreement |
Field Visit / Recovery Visit | Charge for field or recovery follow-up | ₹1,000 | As per agreement |
NACH Bounce | Charge for NACH / ECS return | ₹1,000 – ₹5,000 | As per agreement |
NACH Cancellation | Charge for NACH / ECS cancellation | ₹1,000 – ₹5,000 | As per agreement |
Note: All the above charges are exclusive of applicable taxes. Taxes, if applicable, shall be charged extra in accordance with prevailing laws.
These charges apply per incident and are applicable across all loan products of Manikaran Credit and Leasing Company Pvt. Ltd.
Updated and Revised by the Board of Directors on 30 sept 2025
Effective from 1 Oct 2025