Dhani Loans and Services Limited

(formerly Indiabulls Consumer Finance Limited)

(CIN:U74899DL1994PLC062407)

FAIR PRACTICES CODE

(Reviewed and Approved by the Board as on 24/04/2019)

Fair Practices Code was first adopted by the Board of Directors of M/s Malpani Securities Private  Limited  in  its  meeting  held  on  October  16,  2006.  M/s  Malpani  Securities  Private Limited  was  later  named  as  Shivshakti  Financial  Services  Private  Limited,  then  M/s  IVL Finance Limited than Indiabulls Consumer Finance Ltd. which was subsequently renamed as Dhani Loans and Services Limited. The current Fair Practices Code (FPC) as is being adopted by M/s Dhani Loans and Services Limited (DLSL or herein referred as Company) is in accordance with the guidelines applicable to Systemically Important Non Deposit taking NBFC as per Chapter VI of  the RBI Master Direction DNBR  (PD). 008/03.10.119/2016-17 and with updations thereof.). The Fair Practices Code is as under:

1. Objectives and application

2. Commitment to Customers

3. Disclosure and Transparency

4. Advertising, Marketing and Sales

5. Privacy and Confidentiality

6. Collection of Dues

7. Complaints and Grievances

8. Know your customer guidelines

9. Deposit Account

10. Loans

11.  Guarantor

12. General

1.OBJECTIVES & APPLICATION:

1.1 Objectives of the Code

Dhani  Loans  and  Services  Limited  has  set  its  objective  to  pursue  best  corporate practices   and  to   bring   about   utmost  transparency  in   business   practices  followed internationally and thereby foster customer confidence in the Company. Accordingly, the Present Code has been set to:

i) promote good  and  fair  practices  by  setting  minimum  standards  in  dealing  with customers;

ii) ensure transparency so that the customer can have a better understanding of what he/she can reasonably expect of the services provided by our Company;

iii)  encourage   market   forces,   through   competition,   to   achieve   higher   operating standards; and

iv) Promote fair  and  cordial  relationship  between  the  customer  and  the  Company through robust customer communications and Grievance Redressal Mechanism and thus foster confidence of the former in the latter.

1.2. Application of the Code

All parts of this Code apply to all the loan products and services which are presently being provided or which may be introduced hereafter whether they are provided by the company across the counter, over the phone, by post, through interactive electronic devices, on the internet  or  through  Company’s  agents  or  by any other  method.  Copy of  the fair  practices codes in Vernacular/Regional language as well as the English language shall be displayed at  all  offices/branches  of  the  Company.    A  copy  of  FPC  shall  also  be  displayed  at  the website of the Company notifying members of the general-public and all stakeholders about the codes being adopted by the Company.

OUR COMMITMENTS TO THE CUSTOMERS:

2.1 To act fairly and reasonably in all dealings with customers by ensuring that:

The  Company  shall  meet  the  commitments  and  standards  defined  in  this  Code  for  the products and   services it offers and in the procedures and practices its staff follows.  All the products  and  services  would  meet  relevant  laws  and  regulations  in  letter  and  spirit;  and dealings with customers and shall rest on ethical principles of integrity and transparency.

2.1.1 While dealing with the customers, the company shall refrain from interference in the affairs of the borrower except for the purpose(s) provided in the terms and conditions of the loan agreement.

2.1.2  Company  shall  not  charge  excessive  interest  to  borrowers.  Rationale  of  rate  of interest  being  charged  from  a  customer  shall  be  explained.  All  rates  &  charges  shall  be mentioned in loan application form as well as in the sanction letter.

2.1.3  The  rates  of  interest  and  the  approach  for  gradation  of  risks  shall  also  be  made available on the web-site of the company.

 

2.2 To help customers understand how our financial products and services work by ensuring that:

i) The contents of  advertisements  and  promotional  literature  will  be  as  far  as  possible clear and not misleading. Performa of loan agreement & other documents that may be required  to execute & signed by customer for obtaining loan shall be available on  the website  of  the  Company  for  display  to  facilitate  our  intending  clients  to  know  & understand his rights and obligations by entering loan agreement before hand, so that, an informed decision is taken while obtaining services from us.

ii) In the  first  instance,  the  customers  would  be  explained  and  provided  with  relevant documents etc. containing information about the products and services in any one or more of the following languages: Hindi, English or the appropriate local language. To ensure  absolute  transparency,    the  customers  shall  be  provided  clear  information about the nature of products and services, their terms and conditions, the interest rates per  annum  /  service  charges,  EMI  to  be  payable  for  servicing  of  the  loan  product, documents to be submitted to the company for the products etc. as may be applicable.

iii)    Give customers full information about the benefits which would accrue to them, how he could avail such benefits, their financial implications and whom he could contact in the event of any doubt for addressing his queries.

iv) To help  ensure  the  above,  the  Company  would  provide  help  line  thereby  providing customer appropriate guidance in the matter. Besides the above, customers would be provided with name of the Designated Officer(s) with his/their contact details who is/ are responsible for redressing their grievances.

 

2.3 To help customers to use our products and services by providing:

1.Provide a  copy  of  the  duly  signed  loan  agreement  indicating  details  of  terms  & conditions of the loan sanctioned to the borrower. The Company would ensure, arrange and  provide  the  customers  regular,  appropriate  updates  by  means  of  interactive meeting, through display in website or by e-mail/mailing printed letters. Dissemination of information about changes in the interest rates, charges and terms and conditions and so on.

2. The  change  in the  interest  will  be  intimate  with  advance  notice  before its  application.

The revision of interest rate or service charges will be applicable only prospectively.

 

2.4. To deal quickly and sympathetically with things that may go wrong at any stage, by:

1.Taking prompt and appropriate action to mitigate the impact of the mistake, if any, on the part of the Company.

2.Handling customers’ complaints promptly.

3.Informing Customers about the systems and procedures existing within the Company by  following  which  the  customers  can  approach  to  the  higher  authorities  if  their grievances are not  adequately redressed by their  initial interface with the officials of the Company.

4.Making suitable  arrangements  to  counter  any  problem  that  may  arise  due  to  any technological failure.

 

2.5 To treat all personal information of customers as private and confidential

We are committed and shall treat all personal information of our customers as private and highly confidential subject, however, subject to paragraph 5 herein below.

 

2.6. To publicise the code our company shall:

i. inform our existing and new customers about the Code

ii. make this  Code   available  on  request  either  over  the  counter  or  by  electronic communication;

iii. make available this Code at every branch of the Company and also on the website of the Company; and ensure that the staff of the Company are well trained to provide relevant information about the Code and to put the Code into practice.

 

2.7 To adopt and practice a non – discrimination policy

Our Company shall not discriminate on the basis of age, race, caste, gender, marital status, religion or disability.

 

2.8 Special care to senior citizen and physically challenged persons

We shall make our best efforts to make it easy and convenient for our customers like senior citizens, physically challenged persons and illiterate persons in their dealing with us.

3. DISCLOSURE AND TRANSPARENCY

3.1 Our Company believes in complete disclosures and transparency in dealing with our customers. We shall provide fullest information about all factors which may have any bearing on the transactions between the Company and the customers including but not limited to the interest rates, common fees and charges through all possible means including:

i. Putting up notices in the branches

ii. Through Telephone or helplines;

iii. Through the company’s website;

iv. Through designated staff/helpdesk;

v. Providing service guide / tariff schedule; and

vi. As far as possible all the relevant details will be incorporated in the prescribed application form for the product.

 

3.2 In respect of prospective customers the Company shall:

i. Provide clear information explaining the key features of the services and products that customers may  be   interested  in   the  Loan  Application   Forms  with   all   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  there  by informed decision can be taken by the borrower. The loan application will indicate the documents  that  may  be  required  to  be  submitted  with  the  application  form.  An acknowledgement shall be provided to the applicant.

ii. Assist the  customers  in  selecting  products  and  services  that  may  suit  the  customers’ needs;

iii. Apprise the customers about various means through which products and services of the Company are offered [for example, on the Internet, over the phone, in branches and so on] and inform them about the sources and means to get more information about these products and services.

iv. Inform the customers about the requisite information and documents required from him / her to  prove  his  /  her  identity  and  address,  for  complying  with  legal,  regulatory  and internal policy requirements.

 

3.3 To those who have become customers, the Company shall:

i. Provide updated  information  that  may  be  developed,  generated  or  derived  by  the Company in relation to key features of the products, including applicable interest rates / fees and charges;

ii. Provide extra and updated information on rights and responsibilities of the customers;

iii. automatically register the customer’s name under a ‘Do Not Call ‘ Service and shall not inform  /  extend  through  telephone  calls  /  SMSs  /  emails  any  new  product  /  service unless and until the customers inform the company in writing their consent to avail of this information / service.

 

3.4 Interest rates:

DLSL shall lay down appropriate internal principles and procedures in determining interest rates  and  processing  and  other  charges.  ALCO  of  the  company  shall  determine  rates  & charges  from  time  to  time  in  accordance  to  the  principle  laid  down  by  the  Board  of  the Company. The Company shall give requisite information to the customers on

i. the interest  rates  calculated  on  an  annualized  rate  which  applies  to  his/her  loan accounts;

ii. how interest  is  applied  to  his  /  her  account  and  method  of  calculation  of  interest including penal interest that may be applicable in the event of default/delayed payment as well as EMI payable by the customer.

 

3.5 Changes in interest rates

The  Company  shall  inform  well  in  advance  to  the  customers  about  its  decision  to  make changes in interest rates on the products offered by the Company and the changes so made in interest rates would be made applicable prospectively.

 

3.6 Fees & charges

i. The Company shall display in all its branches, in Company’s website a notice about the tariff schedule which the customers would be allowed to see free of cost. The customers would also be provided a list of services rendered by the Company free of charge.

ii. The tariff schedule given to the customers in respect of the products and services chosen by him  shall  contain  all  details  about  the  charges  as  applicable  to,  and  which  the customer shall be liable to pay for availing the, products and services so chosen by the customers.

iii.  Shall provide to the customers information about the penalties which shall be levied on him in case of non-observance / violation of any of the terms and conditions governing the product / services chosen by them.

 

3.7 Prepayment Charges

Company  shall  not  levy  prepayment  penalty  from  individual  borrowers  having  taken  term loan under floating rate of interest as per RBI guidelines contained in Bank’s circular No RBI-

2014-15/121 and DNBS(PD)CC No.399/13.10.42/2014-15 dated July 14, 2014. However, in case of change in our policy on foreclosure of loan accounts due to change in Regulatory

Guidelines, pre-payment penalty shall be applicable as per   the prevailing policy on date of the  foreclosure  of  loan  account  which  is  published  in  the  website  of  the  Company  for information of all stake holders.

 

3.8 Changes in fees & charges

If the Company decides to increase any of these charges or introduce a new charge, it will be  notified  one  month  prior  to  the  revised  charges/new  charges  being  levied  /  becoming effective.

 

3.9 Terms and conditions

i. The Company shall suitably advise the customer availing a product / service for the first time, about  the  relevant  terms  and  conditions  for  the  products/services  he  /  she  has asked the Company to provide.

ii. The terms and conditions governing the products and services of our Company shall be fair and  shall  set  out  respective  rights  especially  the  right  of  the  customers  to  make nomination. The said terms and conditions shall spell out the liabilities and obligations clearly. Endeavour shall be made to prepare and present these terms and conditions in plain and simple language.

 

3.10 Changes in the Terms and Conditions

Any change in the terms and conditions shall be communicated to the customers through any of the following channels:

i. Personal intimation;

ii. Notice Board at each branch;

iii. Internet, including email and website;

iv. Newspaper, whenever required;

v. Normally, changes  would  be  made  with  prospective  effect  and  due  notice  of  such changes would be given to the customers in advance;

vi. If it  is  not  possible  to  intimate  the  customer  about  any  change  in  the  terms  and conditions in advance and if the change is made without giving advance notice to the customer, the change so made shall be duly notified within 30 days. If the terms and conditions   after   making   such   changes   i.e.,   changes   made   without   giving   prior intimation  to  the  customer,  become  disadvangeous  to  any  customer,  then  such customer  may  within  60  days  and  without  giving  any  notice  either  close  his/her account or switch it without having to pay any extra charges or interest;

vii.If there is any major change or a lot of minor changes in the terms and conditions, then upon the request  of  the customer, the same shall be duly informed to the customer and the customer shall be provided with a copy of the new terms and conditions or a summary of the changes.

4. ADVERTISING, MARKETING AND SALES

4.1 The Company shall:

i. Make its endeavors to ensure that all advertising and promotional material released by the Company is clear, and not misleading.

ii. The Company  would  endeavor  that  any  advertisement  released  in  media  and/or promotional literature that draws attention to any service or product of our Company and includes a reference to an interest rate, shall also indicate other fees and charges, if any, applicable to such product or service and full details of the relevant terms and conditions would be made available on request.

iii. Whenever the service of any third party is used for providing support services, we shall ensure that such third party handle customer’s personal information (if any available to such  third  parties)  with  the  same  degree  of  confidentiality  and  security  as  the  We would.

iv. Company may, from  time  to time,  communicate to  customers  various features of  its products availed by them. Information about any other products or promotional offers in respect of products / services shall be conveyed to customers only if he / she has given  his  /  her  consent  to  receive  such  information  /  service  either  by  mail  or  by registering for the same on the website or on customer service number.

v. We would prescribe a code of conduct to the Direct Selling Agencies (DSAs) whose services we  may  avail  to  market  products  /  services  which  amongst  other  matters require  them  to  identify  themselves  when  they  approach  the  customer  for  selling products personally or through phone.

vi. In the   event   of   receipt   of   any   complaint   from   the   customer   that   Company’s representative  /  courier  or  DSA  has  engaged  in  any  improper  conduct  or  acted  in violation of this Code, appropriate steps shall be initiated to investigate and to handle the complaint and indemnify the customer if found appropriate.

5. PRIVACY AND CONFIDENTIALITY

5.1 All personal information of customers shall be treated as private and confidential [even when  the  customers  are  no  longer  customers],  and  shall  be  guided  by  the  following principles  and  policies.  Company shall  not  reveal  information  or  data relating  to  customer accounts,  whether  provided  by  the  customers  or  otherwise,  to  anyone,  including  other entities in our group, other than in the following exceptional cases:

i. If the information is to be given by law or by the direction of the regulator/s;

ii. If there is a duty towards the public to reveal the information;

iii. If the Company’s interests require them to give the information (for example, to prevent fraud)  but  the  same  shall  not  be  used  as  a  reason  for  giving  information  about customer  or  customer  accounts  [including  customer  name  and  address]  to  anyone else;

iv. If the  customer  asks  the  Company  to  reveal  the  information,  or  with  the  customer’s permission;

v. If the Company is asked to give a reference about  customers,  with his  /  her  written permission;

vi. The customer shall be informed the extent of his / her rights under the existing legal framework for accessing the personal records that holds about him /her;

vii. The Company shall not use customers’ personal information for marketing  purposes by anyone unless the customer specifically authorizes to do so.

 

5.2 Credit reference agencies

i. When a  customer  opens  an  account,  the  Company shall  inform  him  /  her  when  the Company  may  pass  his  /  her  account  details  to  credit  reference  agencies  and  the checks that may make with them.

ii. The Company may give information to credit reference agencies about the personal debts the customer owes to the Company if:

  • The customer has fallen behind with his / her payments;
  • The amount owed is not in dispute; and

iii.  The  customer  has  not  made  proposals  that  the  Company  is  satisfied  with,  for repaying his / her debt, following Company’s’ formal demand In these cases, Company shall intimate the customer in writing that it plans to give information about the debts the customer owes to the Company to credit reference agencies. At the same time, the Company shall explain to the customer the role of credit reference agencies and the effect the information they provide can have on customer’s ability to get credit.

iv. The Company  may  give   credit   reference   agencies   other  information   about  the customer’s account if the customer has given his / her permission to do so.  A copy of the  information  given  to  the  credit  reference  agencies  shall  be  provided  by  the Company to the customer, if so demanded.

6. COLLECTION OF DUES

6.1  Whenever  loans  would  be  given,  the  customer  would  be  explained  of  the  repayment process by way of the amount, tenure and periodicity of repayment. If the customer fails to adhere to the prescribed repayment schedule, appropriate action for recovery of dues shall be taken under the laws of land and no undue harassment will be resorted to.

6.2 DLSL has framed collection policy based on courtesy, fair treatment and persuasion. The  Company  believes  in  fostering  customer  confidence  and  long-term  relationship.  The staff  or  any  person  authorized  to  represent  the  Company  in  collection  of  dues  or  /  and security repossession shall identify himself / herself and display the authority letter issued by the Company. He/she shall upon request of customer, display his / her identity card issued by the Company or under authority of the company. Company shall provide customers with all the information regarding dues and shall endeavor to give sufficient notice for payment of dues.

6.3  All  the  members  of  the  staff  or  any  person  authorized  to  represent  the  Company  in collection or / and security repossession shall strictly follow the Codes set out below:

i. Customer would  be  contacted  ordinarily  at  the  place  of  his  /  her  choice  and  in  the absence of any specified place at the place of his / her residence and if unavailable at his / her residence, at the place of business / occupation.

ii. Identity and authority to represent the Company shall be made known to the customer at the first instance.

iii. Customer’s privacy shall be respected.

iv. Interaction with the customer shall be in a civil manner. Utmost care shall be taken in the use of language while interacting, so that at any point of time the customer should not feel hurt/feel any un-courteous treatment. While interacting with women borrowers, due respect as per Indian culture and tradition shall be maintained.

v. Company’s representatives  shall  contact  the  customers  between  0700  hrs  and  1900 hrs, unless the special circumstances of the customer’s business or occupation require otherwise.

vi. Customer’s request to avoid calls at a particular time or  at  a particular place shall be honored as far as possible.

vii. Time and number of calls and contents of conversation would be documented.

viii. All  assistance  would  be  given  to  resolve  disputes  or  differences  regarding  dues  in  a mutually acceptable and in an orderly manner.

ix. During visits  to  customer’s  place  for  dues  collection,  decency  and  decorum  shall  be maintained.

x. Inappropriate occasions  such  as  bereavement  in  the  family  or  such  other  calamitous occasions,  if  comes  to  the  knowledge  the  Company,  shall  be  avoided  for  making calls/visits to collect dues unless the same is required for meeting legal compliance.

 

6.4 Repossession of hypothecation/lien assets

The  loan  agreement  shall  have  a  built  in  legally  enforceable  re-possession  clause  in  the contract/loan  agreement  with  the  borrower.  Re-processing  process  shall  be  carried  out transparently  as  per  terms  and  conditions  of  the  contract/loan  agreement  and  process be followed regarding :

i. Notice period before taking possession;

ii. Circumstances under which the notice period can be waived;

iii. The procedure for taking possession of the security;

iv. a provision  regarding  final  chance  to  be  given  to  the  borrower  for  repayment  of  loan before the sale / auction of the property;

v. The procedure for giving repossession to the borrower, and

vi. The procedure for sale / auction of the property. A copy of such terms and conditions be made available to the borrowers along with a copy of the loan agreement and copy of each of all enclosures quoted in the loan agreement to all the borrowers at the time of sanction /   disbursement   of   loans,   which   may   form   a   key   component   of   such contracts/loan agreements.

7.1 Internal Procedures:

Company shall endeavor to address/respond to all complaints and grievances within a  reasonable  time  and  keep  the  customers  informed  about  the  status  of  their complaints.

Company shall make available facilities at  each of  its branches and offices for  the customers to lodge and/or submit their complaints or grievances, if any.

Customer  shall  be  provided  with  facility  to  lodge  his  grievances  for  redressal  through specifically made e-mail id available on the website of company. DLSL have established a system where by access to the complaint handling process is made available free of charge to our customers.

If the customer wants to make a complaint, he/she shall be suitably advised as to

  • All offices, branches shall display the office address, email id, fax no., phone no., etc. where a complaint can be made and designated authority to whom the complaint can be made. How he/she can make a complaint i.e., phone, letter, fax, email, etc.

In the normal course of business, the Customer can reach DLSL either by visit to the nearest branch    or    by    phone    on    below    mentioned    helpline    numbers    or    by    e-mail    to support@dhani.com, or lodge complaints by email to   grievance@dhani.com

 Helpline Numbers are:

You can reach out to our customer service centre between 8:00AM to 8:00PM

Dhani Loans –  0124-6165722

Dhani Credit Line – 022-67737800

If the complainant is not satisfied with the reply provided by the customer care department, may escalate to his/her complaints to higher authority as below:

FIRST LEVEL

 

Customers are requested to visit, call or write to the nearest branch of DLSL. Name of Branch Head:

Contact details : Phone, email and full address: Or  send an email at   support@dhani.com

 

SECOND LEVEL

 

If not attended within 7 working days, lodge a complaint through customer help line nos mentioned below:

You can reach out to our customer service centre between 8:00AM to 8:00PM

Dhani Loans 0124-6165722

Dhani Credit Line 022-67737800

Or send an email at grievance@dhani.com

 

THIRD LEVEL

 If the complaint is not resolved satisfactorily within 15 working days, customer can contact our principal nodal officer at:

Mr. Sanjeev Kashyap

Chief Compliance Officer

Dhani Loans and Services Limited

Indiabulls House, 448-451, Udyog Vihar,

Phase-V, Gurugram- 122016 (Haryana)

Phone 0124-6037111, Email: nodal@dhani.com

FOURTH LEVEL

 If the complaint is not redressed satisfactorily within 30 working days, customer may directly write to the office of Ombudsman of their respective region. Region wise contact details of Ombudsman are as under:

S. No. Centre

 Address of the Office of

NBFC Ombudsman

 Area of Operation
1. Chennai  C/o Reserve Bank of India, Fort Glacis, Chennai 600 001 STD Code: 044 Telephone No : 25395964 Fax No : 25395488 Email : nbfcochennai@rbi.org.in  Tamil Nadu, Andaman and Nicobar Islands, Karnataka, Andhra Pradesh, Telangana, Kerala, Union Territory of Lakshadweep and Union Territory of Puducherry
2. Mumbai  C/o Reserve Bank of India RBI Byculla Office Building Opp. Mumbai Central Railway Station Byculla, Mumbai-400 008 STD Code: 022 Telephone No : 23028140 Fax No : 23022024 Email : nbfcomumbai@rbi.org.in  Maharashtra, Goa, Gujarat, Madhya Pradesh, Chhattisgarh, Union Territories of Dadra and Nagar Haveli, Daman and Diu
3. New Delhi  C/o Reserve Bank of India Sansad Marg New Delhi -110001 STD Code: 011 Telephone No: 23724856 Fax No : 23725218-19 Email : nbfconewdelhi@rbi.org.in  Delhi, Uttar Pradesh, Uttarakhand, Haryana, Punjab, Union Territory of Chandigarh, Himachal Pradesh, and Rajasthan and State of Jammu and Kashmir
4. Kolkata  C/o Reserve Bank of India 15, Netaji Subhash Road Kolkata-700 001 STD Code: 033 Telephone No : 22304982 Fax No : 22305899 Email :nbfckolkata@rbi.org.in  West Bengal, Sikkim, Odisha, Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Bihar and Jharkhand

*  Board  of  Directors/Committee  of  the  Board  shall  periodically  review  grievance redress  process  as  well  as  issue  instructions  in  the  matter  so  that  customer  gets expeditious and fair resolutions of his grievances.

8.KNOW YOUR CUSTOMER (KYC) GUIDELINES

8.1   As required under know your customer (KYC) guidelines before extending any credit facility  or  loan  a  due  diligence  exercise  would  be  carried  out  to  meet  certain  statutory requirements which would cover following aspects:

i. The customer shall be required to provide necessary documents or proofs of his/her identity;

ii. The customer shall be required to provide such information as may be necessary to meet with   Company’s   KYC,   Anti   Money   Laundering   or   any   other   statutory requirements.   Further,   certain   additional   information   may   be   sought   which   the customer  may  voluntarily  provide.    It  will  be  responsibility  of  the  client  to  provide updated proof of his identity and address periodically. Provide immediate intimation to the Company in the event of change of his/her recorded address;

iii. The account opening forms and other material shall be provided by the Company to the customer. The same shall contain details of  essential information required to be furnished and documents to be produced for verification and/or for record for meeting the KYC requirements;

iv. The customer  would  be  duly  explained  the  procedural  formalities  for  opening  an account.  All  necessary  clarifications  would  be  provided  to  the  customer  as  may  be sought by him/her.

9. DEPOSIT ACCOUNTS

No employee of the Company shall seek/accept deposit from public in any manner/form so long the Company maintains its registration status as ‘non deposit accepting company’

10.LOANS

10.1  Before  lending  any  money  the  company  shall  make  proper  assessment  of  the creditworthiness and repayment capacity of the customer.

i) Time frame for disposal of Loan Application

The Company shall dispose off fully completed loan application within 30 days from the date of  submission  of  the  proposal  together  with  all  the  requisite  documents.  If  the  company decides  not  to  provide  loan  to  the  customer  for  any  reason,  it  shall  be  communicated  in writing the reason(s) for rejection of the loan application.

ii) Acceptance of guarantees on behalf of the borrower

If the customer wants the company to accept a guarantee or other security from someone for his  liabilities,  the  company  may  ask  the  customer  for  his  permission  to  give  confidential information about his finances to the person giving the guarantee or other security, or to their legal adviser. The Company would:

  • encourage the customers  to  take  independent  legal  advice  to  make  sure  that  they understand  their  commitment  and  the  possible  consequences  of  their  decision  (where appropriate,  the  documents  we  ask  them  to  sign  will  contain  this  recommendation  as  a clear and obvious notice);
  • tell the customers that by giving the guarantee or other security they may become liable instead of, or as well as, him; and
  • tell them what their liability would be.

10.2 Applications for loans and their processing

i. At the time of sourcing a loan product, the company would provide necessary information about the, annual interest rates applicable, as also the fees/charges, if any, payable for processing, pre-payment options and charges if any and any other matter which may the interest of the borrower, so as to enable the customer to make a meaningful comparison with those of other companies and make an informed decision.

ii. The company  shall  provide  acknowledgement  for  receipt  of  all  loan  applications.  The applicant  will  be  informed  about  the  time  frame  within  which  loan  applications  will  be disposed while accepting application.

iii.  Normally all particulars required for processing the loan application shall be collected by the company at the time of application. In case any additional information is required, the customer shall be told that he would be contacted immediately again.

iv. The Company shall convey to the customer the loan sanctioned along with the terms and conditions  thereof.  The  company  shall  provide  authenticated  copies  of  all  the  loan documents executed by the customer at the company’s’ cost along with a copy each of all enclosures quoted in the loan document on request.

v. No customer shall be discriminated on grounds of gender, caste and religion in the matter of lending. However, this does not preclude the Company from instituting or participating in schemes framed for different sections of the society.

 

10.3 Non-Acceptance of Loan Application:

If due to any reason, the Company is not in a position to sanction a Loan who has given a written application, the customer will be advised in writing about the same with reason/s.

10.4 Decision to Recall or Acceleration of repayment of loan amount:

Before taking a decision to recall / accelerate payment or performance under the agreement or seeking additional securities for any reason, the Company shall give notice to borrowers in consonance with the loan agreement.

10.5 Closure of Loan Account and release of Securities/Documents:

The  Company  shall  release  all  securities  immediately  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 against borrower. Where the Company decides to exercise its right of set off, the borrower shall 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.

10.6 Investigation of Fraudulent Transactions:

In the event  of  need for any investigation of  a transaction on the customer’s account,  the customer shall be advised/requested to co-operate in investigation with the Company and with  the  police/  other  investigative  agencies,  if  the  Company  needs  to  involve  them.  The Company  shall  advise  the  customer  that  if  the  customer  acts  fraudulently,  he/she  will  be responsible for all losses on his/her account and that if the customer acts without reasonable care and this causes losses, the customer may be responsible for the same.

11. Guarantors

i. When a person will be considered to be a guarantor to a loan, he/she would be informed about:

  • His/her liability as guarantor;
  • The amount of liability he/she will be committing him/herself to the company;
  • Circumstances in which the Company will call on him/her to pay up his/her liability;
  • Whether the Company has recourse to his/her other monies in the company if he/she fail to pay up as a guarantor;
  • Whether his/her liabilities as a guarantor are limited to a specific quantum or are they unlimited; and

ii. The time and circumstances in which his/her liabilities as a guarantor will be discharged as also the manner in which the Company will notify him/her about this. The Company shall keep him/her informed of any material adverse change/s in the financial position of the borrower to whom he/she stands as a guarantor.

12. GENERAL:

The Company shall provide necessary information to the customers:

i. Explaining the key features of its loan products including applicable fees and charges through most important document.

ii. Advising the  customers  what  information  /  documentation  would  be  required  to enable  the  customer  to  apply.  The  customers  would  also  be  advised  regarding documentation   that   would   be   required   in   respect   of   his/her  identity,   address, employment, etc. and other documents that may be stipulated by statutory authorities (e.g. PAN details) in order to comply with legal and regulatory requirements.

iii. Informing the customer that the information provided by the customer in/with his loan application can be verified either over phone or by visiting the place of his residence or office at the address given by the customer.

iv. Advising the   customer   to   co-operate   if   the   Company   needs   to   investigate   a transaction  on  the  customer’s  account  and  with  the  police/  other  investigative agencies, if the Company needs to involve them.

v. Advising the   customer   that   if   the   customer   acts   fraudulently,   he/she   will   be responsible  for  all  losses  on  his/her  account  and  that  if  the  customer  acts  without reasonable  care  and  this  causes  losses,  the  customer  may  be  responsible  for  the same.

REVIEW

Fair Practice Code Committee shall oversee the implementation of the code and shall review its functioning periodically.

It would be general endeavor of the all the staff members and authorized representatives of the Company to maintain cordial relation with the customer all the time in the best interest of the Company. The customer shall be given all the information about the products till he is fully satisfied with the explanation and accepts all the terms and conditions before entering contract/agreement with the company.