About Us

You are here

Fair Practices Code
Fair Practices Code
Applications / Loan Agreements for loans and their processing
  • Official language for all communications within the company or with third parties,shall be English.

  • All communications to the borrower shall be in English or in Vernacular language/the language as understood by the borrower.Company would include all necessary information in its loan documents which affects the interests of the borrower, so that a meaningful judgement of the terms and conditions be made by the borrower.

  • The borrower would be informed by the Company and/or its consultants of the requirement of documents viz. legal opinions, security documents, title documents, and books and papers including KYC documents that would be required for in connection with proposed disbursement.

  • The time frame within which the loan applications/ loan agreement will be disposed of will be indicated in the acknowledgement/ term sheet or similar document.

Loan appraisal and terms/conditions
  • Company shall convey in writing to the borrower in English or in vernacular language /the language as understood and confirmed by the borrower, the fate of the loan application/ loan agreement by means of sanction letter or otherwise.

  • In case of sanction of loan, the sanction letter shall contain the amount of loan to be sanctioned along with the terms and conditions including annualized rate of interest and method of application thereof.

  • The acceptance of the terms and conditions communicated by the borrower shall be preserved by the Company on its records and copy of the same shall be provided to the borrower upon its request

  • Company shall mention the penal interest, if any, charged for late repayment in the bold in the sanction letter and loan agreement.

  • Company shall furnish a copy of loan agreement along with a copy of each of the enclosures quoted in the loan agreement to the borrower, at the time of execution of the loan agreement including the enclosures /disbursement of loan in English or in vernacular language /or the language as understood by the borrower.

  • Company shall furnish copies of security creation documents/ agreements along with a copy of each of the enclosures quoted in each of the security creation documents/ agreement to the borrower, at the time of execution of the loan agreement including the enclosures /disbursement of loan in English or in vernacular language /or the language as understood by the borrower.

Disbursement of loans including changes in terms and conditions
  • Company shall give notice to the borrower in English or in vernacular language/ the language as understood by the borrower, of any changes in the terms and conditions including disbursement schedule, interest rates, service charges, payment charges etc., and a suitable condition in this regard shall be incorporated in the loan agreement. Any amendments are carried out as per terms of the Agreement.

  • Changes in interest rates and charges shall be effected prospectively.

  • Decision to recall/accelerate payment or performance under any agreement/ arrangement shall be in consonance with the loan agreement.

  • Company shall release all securities on repayment of all dues or on realization of the outstanding amount of loan subject to any legitimate right or lien for any other claim company may have against borrower.

  • In case of receipt request from the borrower for transfer borrowal account, the consent or otherwise i.e. objection of company, if any, shall be conveyed within 21 days from the date of receipt of request. Such transfer shall be as per contractual terms entered into with the borrower and in consonance with statues, rules, regulations and guidelines as may be applicable from time to time.

  • 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 the conditions under which company is entitled to retain the securities till the relevant claim is settled/ paid.

General
  • Company shall refrain from interference in the affairs of the borrower except for the purposes provided in the terms and conditions of the loan agreement, unless new information, not earlier disclosed by the borrower, has come to its notice.

  • In case of receipt request from the borrower for transfer borrowal account, the consent or otherwise i.e. objection of company, if any, shall be conveyed within 21 days from the date of receipt of request. Such transfer shall be as per contractual terms entered into with the borrower and in consonance with statues, rules, regulations and guidelines as may be applicable from time to time.

  • In the matter of recovery of loan, Company shall resort only to remedies which are legally and legitimately available to it.Company shall not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans, rude behavior from the officers/ staff of the Company etc.

  • Company shall train its officers/ staff for dealing with the customers in an appropriate manner.

  • Company shall ensure that the staff is adequately trained to deal with the customers in appropriate manner.

Grievance Redressal Mechanism
  • The Company shall appoint its Compliance Officer to be the Grievance Redressal Officer.

  • The Grievance Redressal Officer shall collate the grievances received by him and submit it before the Risk Committee and thereafter before the board of directors of the Company.

  • Company shall display at its registered office and branches, the name and contact details of the Grievance Redressal Officer which can be approached for resolution of complaints against the company.

  • Company shall also display contact details of the Regional Office of Department of Non-Banking Supervision of the Reserve Bank Of India under whose jurisdiction the registered office of Company falls, which can be approached if the complaint/ dispute is not redressed within a period of one month by the Grievance Redressal Committee of Company.

Periodic Review
  • The Board of Directors of the company shall periodically review the compliance of Fair Practices Code and the functioning of the Grievance Redressal Committee.

  • A consolidated report of such reviews may be submitted to the board at regular intervals, as may be prescribed by it.

  • Fair Practice Code as approved by the board shall be shall be put in English on the web-site of the Company and any borrower, client or stakeholder wish to obtain the same in vernacular language may request the Company.

Regulation of rate of interest charged by NBFCs
  • The Board adheres to interest rate framework 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 borrowers shall be disclosed to the borrower or customer in the application form and communicated explicitly in the sanction letter.

  • The rate of interest should be annualized rates so that the borrower is aware of the exact rates that would be charged to the account.

  • Boards shall lay out appropriate internal principles and procedures in determining interest rates and processing and other charges.

Escalation
  • To the Risk Committee and thereafter to the Board of directors

Sub menu

Policies

Reaching New Heights and Setting New Standards.

Reaching New Heights and Setting New Standards.