FAIR PRACTICE CODE

The company has framed the following ‘Fair Practice Code’, in accordance with the notifications /guidelines issued by Reserve Bank of India.

1. Applications for loans and their processing
   
   1.1 The Loan application forms of the Company 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 indicate the documents required to be submitted with the application form.
   
   1.2 The Company would give acknowledgement for receipt of all loan applications. The time frame within which loan applications will be disposed of is also indicated in the acknowledgement.
   
   
2. Loan appraisal and terms/conditions
   The Company shall convey in writing to the borrower by means of sanction letter, the amount of loan sanctioned along with the terms and conditions including annualised rate of interest and method of application thereof and keeps the acceptance of these terms and conditions by the borrower on its record.
3. Disbursement of loans including changes in terms and conditions
   
   3.1The Company shall give notice to the borrower of any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges etc. The Company shall also ensure that changes in interest rates and charges are effected only prospectively. The HP agreement contains necessary provisions to this effect
   
   3.2 Decision to recall / accelerate payment or performance under the agreement shall be in consonance with the HP agreement.
   
   3.3 The Company shall release all securities on repayment of all dues or on realisation of the outstanding amount of loan subject to any legitimate right or lien for any other claim the may have against borrower. 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 the Company is entitled to retain the securities till the relevant claim is settled/paid.
   
   
4. General
   
   4.1 The Company shall refrain from interference in the affairs of the borrower except for the purposes provided in the terms and conditions of the HP agreement (unless new information, not earlier disclosed by the borrower, has come to the notice of the company).
   
   4.2 In case of receipt of request from the borrower for transfer of borrowal account, the consent or otherwise i.e. objection of the Company, if any, shall be conveyed within 21 days from the date of receipt of request. Such transfer shall be as per transparent contractual terms in consonance with law.
   
   4.3 In the matter of recovery of loans, the Company shall not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans , etc.
   
   
5. Grievance redressal :Disputes arising in this regard shall be addressed by the Head of the Branch. Disputes if any, not settled at that level shall be heard and disposed of by the Managing Director of the Company.
   There shall be a periodical review of the compliance of the Fair Practices Code and the functioning of the grievances redressal mechanism. A consolidated report of such reviews will be submitted to the Board at regular intervals.