Fair Practice Code

RBI has issued the guidelines on Fair Practices Code for Non-Banking Finance Companies which sets the fair practices standards when dealing with individual customers and to serve as a part of best corporate practice. In view of this, the Company has adopted the code to provide transparency in business dealings with its borrowers.

This Fair Practices Code applies to all categories of products and services offered by the Company whether the products and services are provided across the counter, over the phone, through interactive electronic device, on the internet or by any other method.

• Loan application forms will include necessary information, which affects the interest of the borrower, so that a meaningful comparison with terms and conditions offered by other NBFCs can be made.
• The loan application form will indicate the documents required to be submitted with the application form.
• The loan application form and the sanction letter / MID shall disclose the approach for gradation of risks and rationale for charging different rates of interest to different categories of borrowers.
• The company will devise a system of giving acknowledgement for receipt of all loan applications with indicated time frame for disposal.
• Company will make available its loan products to all qualified borrowers and shall not discriminate on grounds of sex, caste and religion in the matter of lending.
• When a person is considered to be a guarantor to a loan, company shall inform him/her of the terms of liability as guarantor and any default in servicing of the loan.

The company will convey in writing to the borrower by means of sanction letter or otherwise, the amounts of loan sanctioned along with the terms and conditions including annualised rate of interest and method of application thereof and keep the acceptance of these terms and conditions by the borrower on its record.

The loan sanction letter and all communications to the borrower shall be in the vernacular language or a language understood by the borrower.

• The Company will give notice to the borrower of any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges etc.
• Changes in interest rates and charges are affected only prospectively.
• The penal interest charged for late repayment shall be mentioned in bold letters in the loan agreement.
• The loan agreement shall contain a built-in re-possession clause with provisions regarding notice period, procedure for taking possession, final chance for repayment, and procedure for sale/auction.
• The Company will release all securities on repayment of all dues or on realisation of the outstanding amount of loan.

• The company will refrain from interference in the affairs of the borrower except for the purposes provided in the terms and conditions of the loan agreement.
• In case of receipt of request for transfer of borrower account, the consent or objection will be conveyed within 21 days.
• In recovery of loans, the company will not resort to undue harassment viz. bothering the borrowers at odd hours or use of muscle power.
• Company shall not charge foreclosure charges/prepayment penalties on all floating rate term loans sanctioned to individual borrowers.

In case of any complaint/grievance, the applicant/borrowers will have to inform in writing the concerned branch. The Branch Officials shall immediately take up the matter for redressal. In case the complaint remains unresolved, the borrower shall write to Zonal Office Level.

All disputes shall be heard and disposed of within 30 days from the date of receipt of the complete details.