Greater transparency enabling customers to understand the products and for taking informed decisions.
Building customer confidence in the company.
Ensuring fair practices while dealing with customers.
All communications to the borrower shall be in the vernacular language or a language as understood by the borrower.
The Loan application forms shall 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 shall indicate the documents required to be submitted along with the application form.
The rate of interest and the approach for gradation of risk and rationale for charging different rate of interest to different categories of borrowers shall be disclosed to the borrowers in the application form and communicated to him in the sanction letter.
The Company shall devise a system of giving acknowledgement for receipt of all loan applications indicating time frame within which loan applications will be disposed of.
The application form will clearly state the information to be provided by the customer to fulfill the KYC norms and to comply with legal and regulatory requirements.
The Company shall convey in writing to the borrower by means of sanction letter or otherwise, 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.
Company shall mention the penal interest charged for late repayment in bold in the loan agreement. A copy of the loan agreement preferably in the vernacular language as understood by the borrower along with a copy each of all enclosures quoted in the loan agreement shall be furnished to all the borrowers at the time of sanction / disbursement of loans.
The terms and conditions of the loan shall be accepted by the borrower before disbursement of the loan amount. The 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. A suitable condition in this regard shall be incorporated in the loan agreement.
Decision to recall / accelerate payment or performance under the agreement shall be in consonance with the loan agreement
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 Company may have against the 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 or paid.