Fair Practice Code
The company has the adopted the Fair Practice Code as per the guidelines issued by RBI from to time.
- To ensure Fair Practice while dealing with customers
- To enable customers to take informed decisions about our financial products and services
- To ensure customer satisfaction
Applications for Loans and
- All communication to the borrower shall be in the vernacular language or a language understood by the borrower.
- Loan application forms issued to prospective customers includes necessary information which affects the interest of the borrower so that a meaningful comparison with the terms and conditions offered by other NBFCs can be made, and the borrower can make an informed decision. The loan application form also clearly indicates documents required to be submitted along with the application form.
- The company has a system for acknowledging receipts of all loan applications. The time frame within which loan applications have to be disposed has been indicated in the acknowledgement.
Loan appraisal and
Terms and Conditions
- In accordance with the company’s appraisal norms, the loan application will be considered and the loan amount approved on the basis of merit.
- The company shall convey in writing to the borrower, by means of an approval letter or otherwise, the amount of loan approved along with the terms and conditions, including the annualised rate of interest and method of application thereof.
- Additionally, the penal interest applicable on late repayment is clearly highlighted in the loan agreement. The company shall keep a record of the customer’s acceptance of all these terms and conditions.
- The company shall, at the time of sanction/disbursement of the loan, furnish a copy of the loan agreement and related enclosures to the customer.
Disbursement of loans including changes
in terms and conditions
- The company shall give notice to all its borrowers of any change in the terms and conditions – including disbursement schedule, interest rates, service charges, prepayment charges, etc. The company shall also ensure that changes in interest rates and charges are affected only prospectively. A suitable provision in this regard is incorporated in the loan agreement.
- The decision to recall/ accelerate payment or performance under the agreement shall also be in consonance with the loan agreement.
- The company shall relieve all securities on repayment of its full dues or on realisation of the outstanding amount of loan, subject to any legitimate right or lien for any other claim the company may have against its borrowers. If such right of set-off is to be exercised, the borrower shall be given notice about the same with full particulars about the remaining claims and conditions under which the company is entitled to retain the securities till the relevant claim is settled/paid.
- The company will refrain from interference in the affairs of the customer except for the purposes provided for in the terms and conditions of the loan agreement (unless new information, not earlier disclosed by the customer, has come to the notice of the company).
- The company will not discriminate against loan applications based on grounds of sex, caste and religion.
- In case of receipt of a request from the borrower for transfer of the borrowal account, the consent or otherwise – i.e., objection of the company, if any – shall be conveyed to the borrower within 21 days from the date of receipt of any request. Such transfer shall be as per transparent contractual terms in consonance with law.
- In the matter of recovery of loans, the company staff is adequately trained to deal with customers and shall not resort to any harassment – such as persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans, etc.
- The company shall not charge foreclosure charges/ pre-payment penalties on all floating rate term loans sanctioned to individual borrowers, with immediate effect.
Responsibility of the Board of Directors
- The Board of Directors of the company shall also lay down the appropriate grievance redressal mechanism within the organisation.
- The Board of Directors shall also provide for periodical review of the compliance to the Fair Practices Code and functioning of the grievances redressal mechanism at various levels of management.
In the present competitive scenario, excellent customer service is an important tool for sustained business growth. Customer complaints are a part of business life in any corporate entity. We believe that providing prompt and efficient service is essential not only to attract new customers but also to retain existing ones.
The company strives to provide a better customer experience and an efficient complaints redressal mechanism with a view to providing enhanced experience to our customers.
Customers may approach the Grievance Redressal Officer for redressal of their complaints.
The company has also displayed the name and contact details of the Grievance Redressal Officer at its branches/locations where business is transacted.
Grievance Redressal Officer
Mr. Madhusudan Gupta
Contact No: 011 49614004
Email id: firstname.lastname@example.org
Address: Plot No 8, pocket 1, Jasola, New Delhi
If the Customers are not satisfied with the resolution provided by the company, they
may further approach:
The Assistant Manager
Reserve Bank of India
Department of Non-Banking Supervision
6, Sansad Marg,
New Delhi 110001
Regulation of Interest Rate
charged by the Company
The Company has laid down appropriate internal principles and procedure in determining interest rates, processing fees and other charges. The Company has adopted an interest rate model taking into account relevant factors such as, cost of funds, margin and risk premium, etc. and determine the rate of interest to be charged for loans and advances.
The rate of interest and the approach for gradations of risk and rationale for charging different rate of interest to different categories of customers shall be communicated explicitly in the sanction letter.
The rates of Interest will be annualized so that the borrower is aware of the exact rates that would be charged to the account.
The Company has a built in re-possession clause in the loan agreement with the customer which is legally enforceable. To ensure more transparency, the terms and conditions of the loan agreement contains provisions regarding:
- notice period before taking possession;
- circumstances under which the notice period can be waived;
- the procedure for taking possession of the security;
- a provision regarding final chance to be given to the borrower for repayment of loan before the sale/auction of the security;
- the procedure for giving repossession to the borrower and
- the procedure for sale / auction of the property.