Settlement & Write-off Policy

1. Preamble

Satsai Finlease Private Limited ("the Company"), a Non-Banking Financial Company (Base Layer) registered with the Reserve Bank of India (RBI), provides unsecured payday loans, personal loans, EMI-based loans, Loan Against Property (LAP), and corporate/business loans. The Company's primary objective is to maintain healthy asset quality while ensuring recovery actions are cost-effective, compliant, transparent and consistent with RBI regulations.

2. Purpose of the Policy

This Policy has been formulated to:

• •Provide a standardised, transparent, and fair mechanism for compromise settlements, loan settlements, and technical write-offs.
• •Ensure full compliance with the RBI's Framework for Compromise Settlements & Technical Write-offs (June 08, 2023).
• •Define detailed processes, documentation, approval authorities, due diligence steps, internal controls, and reporting requirements.
• •Establish clear principles for determining settlement amounts, security valuation, hardship verification, and recovery options.
• •Prevent misuse, arbitrary waivers, conflicts of interest, and coercive recovery practices.
• •Ensure settlements maximize recoveries at minimum cost.
• •Ensure prudential accounting & provisioning norms are followed while writing off assets.

3. Definitions

4. Eligibility Framework for Settlements

5. Technical Write-Off Policy

• •Technical write-off does NOT reduce borrower liability. The write-off shall be effected only in the books of accounts of the Company.
• •Technical write-off accounts must continue to be actively pursued for recovery.
• •Partial technical write-offs must ensure provisioning = 100% of gross exposure as required by RBI.
• •Re-aging of accounts is not allowed.
• •Any waiver must follow compromise settlement norms, not technical write-off norms.
• •Recovery efforts, including legal action, collection follow-ups, or settlement negotiations, may continue even after the loan is written off in the books.

6. Determination of Settlement Amount

7. Delegation of Authority (RBI Mandatory Requirement)

Authority Matrix

All approvals are based on Due Past Days (DPD) of the customer.

8. Detailed Settlement Workflow

9. Fresh Loan Eligibility for Settlement and Write-off Accounts

The Company does not provide fresh loans to customers whose accounts were settled under compromise or classified as technical write-off. Exceptions may be granted on specific customer request, subject to proper verification of the case, assessment of creditworthiness, and approval by the competent authority.

10. Accounting Treatment

11. Monitoring, Audit & Reporting

12. Review of Policy

• •Annual review by Board.
• •Interim review if RBI issues new directions.
• •All amendments recorded and notified internally.

13. Effective Date

This Loan Settlement Policy is approved by the Board of Directors of Satsai Finlease Private Limited at its meeting held on April 21, 2025 and shall be effective from the same date.