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TERMS & CONDITIONS

Aarambh Micro Credit Forum – Debenture Issue (NCD & CD)

🌟 1. Introduction

Aarambh Micro Credit Forum (“the Company”) is pleased to offer investment opportunities through debentures to support its mission of expanding financial inclusion and micro-lending services across India.

This document outlines the terms governing the issuance of:

  • Non-Convertible Debentures (NCDs)
  • Convertible Debentures (CDs)

💰 2. Non-Convertible Debentures (NCDs)

These are fixed-income instruments designed for investors seeking stable and predictable returns.

  • Interest Rate: 12% per annum
  • Interest Payment: Paid quarterly
  • Tenure: 3 years (36 months)
  • Nature: Unsecured
  • Repayment: Full principal amount payable at maturity
📌 Example: If you invest ₹1,00,000, you will receive quarterly interest payouts at 12% p.a.

🔁 3. Convertible Debentures (CDs)

These debentures combine fixed returns with an opportunity to participate in the company’s future growth.

  • Interest Rate: 9% per annum
  • Interest Payment: Quarterly / Annual (as specified at issuance)
  • Tenure: 3 years (36 months)

🔄 Conversion Feature:

  • Investors will have the option to convert up to 50% of the invested amount into equity shares after 36 months from the date of allotment
  • Remaining 50% shall be:
    • Redeemed in cash, OR
    • Converted, subject to mutual agreement
📌 Conversion pricing will be determined based on a valuation report from a registered valuer in accordance with applicable laws.

🚀 4. Pre-IPO Vision

The Company is actively working towards scaling operations and aims to explore a Pre-IPO opportunity after 24 months.

  • This may provide early investors (especially CD holders) an opportunity to benefit from:
    • Potential valuation upside
    • Equity participation
📌 Note: Pre-IPO plans are indicative and subject to market conditions and regulatory approvals.

🧾 5. Taxation

  • Interest income earned on debentures is taxable as per the Income Tax Act, 1961
  • Applicable TDS (Tax Deducted at Source) shall be deducted by the Company

📊 6. Minimum Investment

  • Minimum investment amount: ₹_5000/-_______
  • Investment in multiples of: ₹_5000/-_______

⚠️ 7. Risk Factors

Investors are requested to carefully consider the following:

  • Credit risk (delay or default in payments)
  • Liquidity risk (limited transferability)
  • Regulatory risks (including Reserve Bank of India guidelines, if applicable)
📌 These instruments are not government guaranteed.

🔄 8. Transferability

  • Debentures are not freely transferable
  • Any transfer shall require prior approval of the Company

📉 9. Default & Investor Rights

  • Investors may initiate legal remedies under applicable laws
  • If a debenture trustee is appointed, the trustee will act in the interest of investors

⚖️ 10. Governing Law & Jurisdiction

  • This issue is governed by the laws of India
  • All disputes shall be subject to the jurisdiction of courts at Raigarh, Maharashtra.

🏛️ 11. Regulatory Compliance

This debenture issuance is structured in accordance with:

  • Ministry of Corporate Affairs (Companies Act, 2013)
  • Securities and Exchange Board of India (where applicable)
  • Applicable provisions of Reserve Bank of India (if classified as NBFC activity)
📌 The issue shall be made through private placement and not as a public offer.

🤝 12. Declaration

By investing, the investor acknowledges that:

  • They have understood the terms and associated risks
  • They are investing voluntarily
  • They agree to be bound by the terms of this document

Authorized Signatory

Aarambh Micro Credit Forum

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Last Updated: April 12, 2026