This Fair Practices Code is aimed to provide to all the stake holders, especially customers, an effective overview of practices followed by the Company in respect of financial facilities and services offered by the Company to its Customers. This Fair Practices Code has been prepared taking in to account the “Guidelines on Fair Practices Code for NBFCs” issued by the Reserve Bank of India and aims to enable customers to take informed decisions in respect of the facilities and services offered by the Company.
This Code has been drawn up to: Provide to the customers effective overview of practices followed by the Company in respect of financial facilities and services offered by the Company to its Customers; Enable customers to take informed decision about the financial facilities and services offered by the Company; Promote good, fair, transparent and trustworthy practices by setting minimum standards in dealings with customers; Enable customers to have better understanding of what they can reasonably expect of the services offered by the Company; Reckon with market forces, through competition and strive to achieve higher operating standards and foster fair and cordial relationship between the customers and the Company.
The Fair Practice Code (FPC) is intended to cover the following areas:
All communications to the borrower shall be in the vernacular language or a language as understood by the borrower. Loan application forms issued by the Company shall include necessary information which affects the interests of the borrower and shall indicate the documents required to be executed/submitted by the borrower. If any additional documents/information are required from the Customer, same shall be communicated to the Customer immediately.
The Company provides acknowledgement to the prospective borrower for receipt of loan application. The time frame within which loan application will be disposed of is mentioned in such acknowledgement.
The company conveys in writing to the prospective borrower the fate of the loan application by means of sanction letter or otherwise. In case of sanction of loan, the sanction letter contains the amount of loan sanctioned and terms and conditions including annualised rate of interest and method of application thereof. The acceptance of the terms and conditions communicated by the borrower is preserved by the Company in its records and a copy of the same is also provided to the borrower. The company mentions the rate and time when the penal interest is charged, if any, as per Board's decision for late payment in bold in the sanction letter and loan agreement. The company furnishes a copy of the loan agreement along with a copy of each of enclosures quoted in the loan agreement to all clients at the time of disbursement of loan.
The company gives notice to the borrower in English or in vernacular language / the language as understood by the borrower, of any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges etc. Changes in interest rates and charges are effective prospectively and a suitable condition in this regard is incorporated in the loan agreement. Decision to recall/ accelerate payment or performance under the agreement is in consonance with the loan agreement. The company mentions the rate and time when the penal interest is charged, if any, as per Board 's decision for late payment in bold in the sanction letter and loan agreement. The company shall release all securities upon repayment of all dues or on realisation of the outstanding amount of loan subject to any legitimate right or lien for any other claim it may have against the borrower. The borrower shall be given due notice with full particulars about the outstanding claims and conditions under which the company will be entitled to retain the securities/ right of set off is to be exercised.
The Company has adopted an Interest rate policy taking into account relevant factors such as cost of funds, margin, risk premium etc. to determine the rate of interest to be charged on annualised basis for loans and advances and same is disclosed to the borrower in the loan application form and also disseminated on the website of the company. The Company shall, at the time of disbursal, ensure that the interest rate and other charges, if any, on loan and advances are in strict adherence to above referred internal principles and procedures. The information published on the website shall be updated whenever there is change in the rates. The rates of interest and the approach for gradation of risk shall also be made available on the website. If penal interest is to be levied for late payment, it shall be mentioned in bold in the loan agreement.
The company guides its clients who wish to lodge a complaint and also provide guidance on what to do in case the client is unhappy with the outcome. The company designates an officer for redressing the grievances of the clients, in connection with any matter pertaining to business practices, lending decisions, credit management and recovery and the same is indicated in the sanction letter. The Contact details of the present Grievance Redressal Officer is as below :
Mr. Vikash Kumar Jain
Grievance Redressal Officer
Customer Grievance Redressal Unit
Chhattis Garh Fin-Corp Lending Pvt. Ltd. " CGFL "
Address: TF-1B, Third Floor, Shyam Plaza, Pandri, Raipur (C.G) India
Telephone No: +91 0771 2424222, 2425555 Email Id: firstname.lastname@example.org
After examining the matter, the company sends a response as soon as possible; If the customer's complaint / dispute are not redressed by the Grievance Redressal Officer within a period of one month, the customer may appeal to the Officer-in-Charge of the Regional Office of the Department of Non-Banking Supervision (DNBS) of the Reserve Bank of India (RBI), Mumbai under whose jurisdiction the registered office of the company falls.
The Company refrains from interfering in the affairs of the borrower except for the purposes provided in the terms and conditions of the loan documents, unless new information not earlier disclosed deliberately or otherwise by the borrower has come to its notice. In case of receipt of request from the borrower for transfer of a borrower account to other NBFC, bank or financial institution, the consent or otherwise of the company shall be conveyed within 21 days from the date of receipt of such request in writing. Such transfer shall be in accordance with the contractual terms entered into with the borrower and in consonance with the statutes, rules, regulations and guidelines as may be applicable from time to time. In the matter of recovery of loans, the company shall resort only to remedies which are legally and legitimately available to it and will not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans, etc. The staff of the Company shall be adequately trained to deal with the customers in an appropriate manner so as to ensure proper behavior.
The Board of Director of The company shall periodically review the compliance of FPC and the functioning of the Grievance Redressal Mechanism and a consolidated report of such reviews is submitted to the Board half yearly for information/further directions ,if any.