Fair Practice Code

The Reserve Bank of India has issued guidelines on a Fair Practices Code for Non-Banking Financial Companies, setting fair-practice standards for dealing with customers as part of good corporate conduct. In keeping with these guidelines, the Company has adopted this Code to bring transparency to its business dealings with borrowers.

This Fair Practice Code applies to all categories of products and services offered by the Company, whether provided in person, over the telephone, through an electronic device, over the internet, or by any other method.

• Loan application forms will include the information that affects the interest of the borrower, so that a meaningful comparison with the terms offered by other lenders can be made and an informed decision taken. The form will indicate the documents required to be submitted along with it.
• The Company will acknowledge receipt of all loan applications and will endeavour to indicate the time frame within which applications will be disposed of. Where a loan cannot be granted, the reason(s) for rejection will be communicated to the applicant.
• The loan application will clearly state the information the Company needs to collect to fulfil KYC norms and to comply with legal and regulatory requirements. Additional information may be requested where required.
• The Company will make its loan products available to all qualified borrowers and will not discriminate on the grounds of sex, caste or religion in the matter of lending.
• Where a person stands as a guarantor to a loan, the Company will inform them of the terms of their liability as guarantor and of any default in servicing of the loan by the borrower.

The Company will convey to the borrower in writing, by means of a sanction letter or otherwise, the amount of the loan sanctioned along with the terms and conditions, including the annualised rate of interest and the method of its application, and will keep a record of the borrower’s acceptance of these terms.

The sanction letter and all communications to the borrower will be in a language understood by the borrower.

The Company will give notice to the borrower of any change in the terms and conditions, including the disbursement schedule, interest rates, service charges and prepayment charges. Changes in interest rates and charges will be effected only prospectively, and a suitable provision to this effect will be incorporated in the loan agreement.

Any decision to recall or accelerate payment or performance under the agreement, or to seek additional securities, will be in consonance with the loan agreement.

On repayment of all dues, the Company will release all securities, subject to any legitimate right or lien for any other claim it may have against the borrower. Where such a right of set-off is exercised, the borrower will be given notice with full particulars about the remaining claims and the conditions under which the Company is entitled to retain the securities until the relevant claim is settled.

• The Company will refrain from interfering in the affairs of the borrower except for the purposes provided in the loan agreement, unless information not previously disclosed by the borrower comes to its notice.
• In the event of a request from the borrower to transfer a loan account, the Company’s consent or objection will be conveyed within a reasonable period from the date of receipt of the request, on transparent contractual terms and in consonance with law.
• In the matter of recovery of loans, the Company will not resort to undue harassment, such as persistently contacting borrowers at odd hours or using coercive means for recovery.
• The Company will not charge foreclosure charges or prepayment penalties on floating-rate term loans sanctioned to individual borrowers, in line with applicable regulatory requirements.

In case of any complaint or grievance, the borrower may contact the Company in writing. Complaints will be taken up for redressal promptly, and we endeavour to resolve disputes within 30 days of receiving complete details. Details of our grievance redressal mechanism, including escalation to the Grievance Redressal Officer and, thereafter, to the Reserve Bank of India, are set out on our Grievance Redressal page.