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02 - FAQs on Sanction Process

11. Can you explain the components of variable ROI?
The ROI of PCHF is based on Retail Prime Lending Rate (RPLR) declared
by the company from time to time.

The ROI has two components i.e., RPLR and Margin. ROI is worked
out as shown here. “ROI = RPLR - Margin”. Let us take an example,
if RPLR is 15.50% and Margin is 7% then ROI will be 8.5%
( ROI = 15.5% - 7% = 8.5% )

The Margin as a component of ROI remains constant throughout
the tenor of the loan. Any increase or decrease in ROI is dependent on
change in RPLR.

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