Loan Process & Policy
This page explains the loan process, terms, and policies followed by Safe Nest (an initiative of Mushy Brown). All loans are governed strictly by a written Loan Agreement to ensure transparency, fairness, and mutual understanding between the lender and the borrower.
1. Lender Details
Lender Name: Safe Nest (an initiative of Mushy Brown)
Address: Mokokchung, Nagaland.
2. Loan Amount & Tenure
Loan amounts are sanctioned based on mutual discussion and assessment.
Each loan is issued for a fixed tenure, clearly mentioned in the agreement.
Example Structure:
Loan Amount: ₹30,000
Loan Tenure: 6 months (from date of disbursement)
3. Interest Rate (Flat Rate)
Interest is charged on a flat monthly basis.
The applicable rate is 3% per month on the loan amount.
Illustration:
Monthly Interest: ₹900 (if loan amount is ₹30,000)
Total Interest for 6 months: ₹5,400
The interest amount remains constant throughout the loan tenure.
4. Total Repayable Amount
The total repayable amount includes:
Principal loan amount, and
Total interest for the agreed tenure
Illustration:
Total Repayable Amount: ₹35,400
5. Processing Fee
A one-time processing fee of ₹300/- is charged.
The fee is payable upfront at the time of disbursement.upfront at the time of disbursement.
This fee is non-refundable and not included in EMI calculations.non-refundable and not included in EMI calculations.
6. Loan Agreement & Signing Process
A written Loan Agreement (with Repayment Schedule) is issued for every loan.Loan Agreement (with Repayment Schedule) is issued for every loan.
The borrower must read and understand all terms before signing.read and understand all terms before signing.
The borrower is required to sign on all pages of the agreement.sign on all pages of the agreement.
The signed document must be scanned and submitted in PDF format.scanned and submitted in PDF format.
Loan disbursement is processed only after receipt of the signed agreement and processing fee.only after receipt of the signed agreement and processing fee.
7. Repayment Terms (EMI)
Loans are repaid through fixed monthly EMIs.
EMI Amount: ₹5,900 per month
(If 30k is the loan as stated in the example above)
Due Date: On or before the 10th of every calendar month on or before the 10th of every calendar month
Repayment Mode: Bank Transfer or UPI
8. Prepayment & Early Closure Policy
Borrowers may prepay or close the loan early at any time.
In case of early closure, the borrower must pay interest for the full agreed loan tenure (6 months). interest for the full agreed loan tenure (6 months).
No separate prepayment or early closure charges are applied.
9. Late Payment Policy
An EMI is considered late if not paid on the due date.
A late payment penalty of ₹500 per EMI may be charged.
Late fees are applied once per EMI cycle and do not compound.do not compound.
Payment reminders may be sent via phone call, SMS, WhatsApp, or written notice.
10. Default Policy
A loan may be classified as default if any EMI remains unpaid for more than 30 days.
Borrowers in default may become ineligible for future loans from Safe Nest.
11. Recovery Practices
Safe Nest follows ethical, lawful, and non-coercive recovery practices, which may include:
Written reminders and formal notices
Personal follow-ups
Legal remedies, where permitted by law
If default continues, public notices regarding outstanding dues may be issued through lawful channels strictly for recovery purposes.
12. Borrower Declaration & Consent
By signing the loan agreement, the borrower confirms that:
All terms and conditions have been read and understood
Interest rates, EMIs, fees, penalties, and recovery practices were clearly explained
The loan is availed voluntarily, without coercion or pressure
13. Governing Law
All loans issued by Safe Nest are governed by the laws of India.
Borrowers are encouraged to seek clarification on any clause before signing the agreement. Transparency and trust remain the foundation of every loan issued by Safe Nest.
