Fair Practices Code
Application for loans and their processing:
The Company will issue a numbered application form to all applicants who request the same. The application form will:
- Seek information that is material to credit appraisal.
- Provide a list of documents that the applicant will have to submit along with the application
- Acknowledge any non-refundable fees paid along with the application
Acknowledgement for Loan application:
The Company will issue written acknowledgement for each loan application in the prescribed format immediately on receipt of the application. Time frame within which loan applications will be processed would be indicated in the acknowledgement of such applications.
All valid and complete applications received with minimum documents and meeting minimum credit criteria shall be logged into the loan origination system. The application serial number which is part of the acknowledgement can be used to correspond with the Company.
Detailed appraisal of proposals cleared in principle and sanctioned/ rejected:
The Company would verify the loan applications within a reasonable period of time. If additional details
/ Documents are required; it would intimate the applicant immediately.
In case the application is rejected, the Company will convey in writing, the main reason / reasons which, in the opinion of the Company after due consideration, have led to rejection of the loan applications.
Loan appraisals and terms /conditions:
- The Company would ensure that there is proper credit appraisal on all applications. The appraisal would be in line with the Company’s credit policies and procedures and relevant regulatory guidelines.
The Company would convey to the borrower by means of a sanction letter the fate of the loan proposal in the language as understood by the borrower. The sanction letter shall include amount of loan sanctioned along with the terms and conditions including annualised rate of interest and method of application thereof and all other upfront charges such as processing fees. The Company will provide copy of the Loan agreement along with a copy each of the enclosures quoted in the loan agreement to all the borrowers at the time of sanction/ disbursement of loans in such language as understood by the customer. The sanction letter / Loan agreement will contain all details of fees and charges applicable to the loan. Penal interest for late repayment and other charges shall be mentioned in bold in the loan agreement.
- The Company shall give notice to the borrower in such language as understood by the Customer of any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges, cheque bounce charges, swap charges, late payment penalty etc. Changes in interest rates and charges will be effective only prospectively.
- The decision of the Company to recall / accelerate payment or performance under the agreement shall be in consonance with the loan agreement entered into with the borrower.
- Once the loan agreement is executed, copy of the loan agreement shall be given to the customer for his records.
- In case it is required, borrower will be given an agreement in vernacular language as understood by him.
- The 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 it may have against the borrower. If such right of set off is to be exercised, the borrower shall be informed 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.
- The Company would not interfere 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).
- In case of receipt of request from the borrower for transfer of borrowal account, the consent or otherwise i.e. objection of the Company would 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.
Interest Rate and other Charges
- Loan agreement shall cover the interest charged by the Company to the customer and interest charged and other charges shall be signed by the customer before disbursement.
- Interest Rate on a Loan will be based on Loan amount, tenure, Security / Collateral offered for the Loan, risk parameters, market conditions and cost of funds. The normally applicable Indicative interest rate on loans is available on our website.
Recovery of Loans
The Company would not resort to undue harassment for recovery of loans. The employees of the company who contact customers for collections / recoveries will act as per the code of the conduct of the Company. The Company shall ensure that the staff are adequately trained to deal with the customers in an appropriate manner.
Loan against gold Jewellery
- Loan against Gold Jewellery shall be given in consonance of the Gold Loan Policy approved by the Board of Directors of the Company from time to time.
- The Company shall implement an appropriate internal systems to satisfy the ownership of the gold jewellery
- All assaying of jewellery will happen in presence of the applicant and after due satisfaction by the applicant, such jewellery will be accepted as security.
- The Company will take adequate safeguards with respect to jewellery received, and its storage.
- The jewellery accepted as collateral shall be appropriately insured.
- In the event of default, the Company will give adequate notice to the borrower, before disposal of the jewellery. The Company or its employees will not submit any bids for purchase of such jewellery.
- The loan agreement shall also disclose details regarding auction procedure.
Repossession of Security
The Company has a built in re-possession clause in the contract/loan agreement with the borrower. The Loan agreement shall cover the following points:
- notice period before taking possession;
- circumstances under which the notice period can be waived;
- the procedure for taking possession of the security;
- a provision regarding final chance to be given to the borrower for repayment of loan before the sale / auction of the security;
- the procedure for giving repossession to the borrower
- the procedure for giving repossession to the borrower and the procedure for sale / auction of the security
GRIEVANCE REDRESSAL PROCESS
The quick and effective handling of complaints as well as prompt corrective & preventive actions to improve processes are essential to provide excellent customer service to all segments of customers. To achieve this, the Company shall strive to maintain the following turnaround time frames for responding / resolution of the customer complaints:
||Nature of Complaint
||Loan agreements and loan related
||Within Thirty Days
||Within Thirty Days
||Prepayment & closure documents
||Within Thirty Days
||Within Thirty Days
The grievance redressal process as below, shall be displayed at the branches / places where the business of the Company is transacted, for the benefit of their customers: