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Logo of Xtracap Fintech that provides supply channel finance credit lines to distributors and dealers of brands from IIFL Finance through via two seamlessly integrated mobile apps called xtracapneo and bridge2capital.

Penalty & Penal Charges

Implementation of Penalty and Penal Charges for Defaulting Repayments in Xtracap

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Xtracap System will initiate the imposition of Bounce and Penal Charges on accounts that default on repayments/presentation. The details of the charges are outlined below:

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Penalty Charges:

The Xtracap System will apply bounce charges under the following conditions:

  1. Receivable Failure: This occurs when the Xtracap System generates a due amount, but the customer fails to pay the entire sum or only pays a partial amount by the due date. In such cases, bounce charges of Rs 250 (configurable) plus 18% GST will be imposed on the top ongoing invoice. However, an exemption applies if the customer pays a partial amount, and the difference between the due amount and the payment is less than or equal to Rs 100.

  2. Presentation Failure: This situation arises when the Xtracap System generates a repayment, a presentation call is made, but the customer fails to maintain the minimum balance in the bank account linked to the presented NACH. Bounce charges of Rs 250 (configurable) plus 18% GST will be imposed on the top ongoing invoice, even if the customer pays the due amount by the deadline, as the presentation has failed.

 

Penal Charges:

Penal Charges consist of Principal and Interest components, with distinct calculations based on the repayment cycle and available Grace days. All penal charges will be inclusive of 18% GST.

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Bullet Repayment Cycle:

  1. Principal Penal Charges:

    • For any overdue invoice that has exceeded the grace days, the system will impose the initial penal charge for the grace days.

    • Subsequently, daily penal charges will be applied to the remaining amount.

  2. Interest Penal Charges:

    • If the interest becomes overdue beyond the grace days, the system will impose penal charges on the due interest amount for the grace days.

    • Daily penal charges will then be imposed on the outstanding interest amount.

 

 

Weekly/Fortnightly/Monthly Repayment Cycle:

  1. The system will generate repayments based on the borrower's repayment cycle, incrementing the repayment principal amount in the next dues if previous dues remain unpaid.

  2. Principal and Interest Penal Charges:

    1. Equal grace periods will be granted for both principal and interest.

    2. Once the account surpasses the grace period, the system will impose penal charges on the total due amount for the grace days.

    3. Subsequently, daily penal charges will be applied to the total due interest amount.

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This process aims to ensure timely repayments and adherence to the specified grace periods, ultimately maintaining financial discipline within the Xtracap System.

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PS : The charges imposed by Xtracap System will be transferred to IIFL system, and the integration of the same is been parallelly.

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