IIFL Finance Limited
Demand/ Call Loan Policy
IIFL Finance Limited in compliance with RBI circular no. DNBS. 193 DG(VL)-2007, dated
February 22, 2007 and RBI/DNBR/2016-17/45
Master Direction DNBR.PD.008/03.10.119/2016-17 dated September 01, 2016 and as
updated from time to time is adopting the following policy as Demand/ Call Loan Policy:
1. DEFINITIONS: In this Policy unless the context otherwise requires:
'Outstanding Amount' means amounts funded by the company plus interest, penal interest
charges, costs, fees, charges, Levies, expenses, taxes and claims and any other amount payable
by the Borrower to the company.
‘Loan’ means the loan of an amount as set out in Loan Agreement including any additional top-
up Loan availed in future by the Borrower and includes all interests, costs, charges or any other
expenses related to the loan.
‘Loan Amount’ means the principal amount of the Loan disbursed to the Borrower, mentioned
in the Schedule and any additional amount given as top-up loan.
'Person' includes an Individual, Hindu Undivided Family, association of person, company and
body corporate (both as defined in the Companies Act, 2013).
‘Repayment’ means and includes repayment, either on demand and / or as per the schedule
and/ or the clause under Loan agreement, of all dues in respect of the Loan, which shall be
construed to include the principal amount of loan, interest, all the charges, legal fees, expenses
and costs, etc. provided for in Loan Agreement.
‘Renewal’ means renewal of any loan upon satisfactory compliance with the terms of sanction.
‘Sanctioning Authority’ means directors, employee or group of employees of the company /
holding company / subsidiary companies / group companies or any such committee formed for
such purpose as may be decided by the Management from time to time.
‘Securities’ means "Securities" as defined as per the section 2(h) of the Securities Contracts
(Regulation) Act, 1956 and shall mean the Securities provided by the Borrower to pledge and
deposited with IIFL or in any other separate Demat Account opened either solely in the name of
the Borrower or jointly with IIFL.
2. Cut off date – The cut off date for the repayment of loan and all such loan disbursed shall be 2
years or such lesser period as may be decided by the sanctioning authority and shall be
Updated upto April 2022
repayable on demand alongwith costs, fees, charges, levies, expenses, claims by the company
and outstanding amount alongwith the interest thereon.
3. Interest - The Company shall charge interest as follows:
Rate of Interest – The interest shall be calculated at such rate as may be decided by the
company from time to time and communicated to borrower
Accrual of Interest –The interest on the amount due will accrue from the date of
disbursement or delivery of cheque by the Financier (whichever is earlier) and shall be
computed on the basis of 365 days in a year as may be decided by the company from time to
time.
Interest against Defaults – In the event of any default in the payment of any outstanding
amount, the company shall charge, in addition to the interest specified in Clause 3.1,
additional interest at the rate as specified in schedule of charges from the date of default till
date of payment.
Payment of Interest – The interest as calculated above shall be payable by the borrower on
monthly or quarterly basis
Other Charges –The Company shall charge or get reimbursement for any expenses including
DP charges etc incurred by the company in connection with transfer of securities/funds and/or
trading/investment activities.
4. Moratorium – The sanctioning authority shall, record specific reasons in writing at the time of
sanctioning demand or call loan, if no interest is stipulated or a moratorium is granted for any
period.
5. Review of Performance of Loan – The Sanctioning authority shall review the performance of all
loans sanctioned in one quarter at any date within succeeding quarter.
6. Loan Sanctioning Authority – Directors, Chief Executive Officer, Chief Financial Officer and such
other Senior Officials as may be approved by the Board from time to time are authorised to
sanction the Loans and renewals, if any. The limit for sanctioning of loans will be decided by the
board from time to time.
7. Loans beyond of one year from the date of sanction – The sanctioning authority shall, record
specific reasons in writing at the time of sanctioning demand or call loan, if the cut off date for
demanding or calling up such loan is stipulated beyond a period of one year from date of
sanction.
8. Repayment – Repayment of loan can be either on demand and / or as per the schedule and/ or
the clause under Loan agreement, of all dues in respect of the Loan or by way of enforcement of
security in the event of default as per the loan agreement.
Updated upto April 2022
The Board may amend the provisions of this Policy from time to time. All other regulatory
changes in this regard will stand updated in the policy from time to time.
Updated upto April 2022
