Fair Practices Code

I.) Applications for loans and their processing

• Loan application forms will include 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 informed decision can be taken by the borrower. The loan application form will indicate the documents required to be submitted with the application form.
• An acknowledgement for receipt of all loan applications will be given to the prospective clients. This acknowledgement should indicate time frame within which loan applications will be disposed i.e. generally within 15 working days after receipt of all information / documents.

II.) Loan appraisal and terms / conditions
All terms & conditions of the facility will be advised to the prospective clients by way Sanction / Offer Letter.

III.) Disbursement of loans including changes in terms and conditions

• Any changes in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges etc. the company will inform to the client prior to effecting any changes.
• Decision to recall / accelerate payment or performance under the agreement will be in consonance with the loan agreement.
• The company will 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 of the company may have against the borrower. If such right of set off is to be exercised, the borrower will be given notice about the same with full particulars about the remaining claims and the conditions under which the company is entitled to retain the securities till the relevant claim is settled / paid.

IV.) General

1. 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 (unless new information, not earlier disclosed by the borrower, has come to the notice of the company).
2. In case of receipt of request from the borrower for transfer of borrower account, the consent or otherwise i.e. objection of the company, if any, will be conveyed within 21 days from the date of receipt of request. Such transfer will be as per transparent contractual terms in consonance with law.
3. In the matter of recovery of dues, the company will not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of dues, etc.
4. In the event of any dispute arising out of the decisions of lending institutions' functionaries will be heard and disposed of at least at the next higher level i.e. Management Committee of the company.
5. The Board of Directors will also be provided for periodical review i.e. half yearly of the compliance of the Fair Practices of Code and the functioning of grievances redressal mechanism. A consolidated report of such reviews will be submitted to the Board at regular intervals i.e. half yearly.