Fair Practices Code (FPC) Policy

This Fair Practices Code has been formulated in accordance with the guidelines issued by the Reserve Bank of India (RBI) for all Non-Banking Financial Companies (NBFCs), as per circular RBI/2015-16/16 DNBR (PD) CC.No.054/03.10.119/2015-16 dated July 1, 2015.

This Code provides all stakeholders — especially borrowers — with a clear understanding of the practices, standards, and principles followed by the Company in the conduct of its lending and customer service operations.

Objectives of the Fair Practices Code

The key objectives of this Code are to:

  • Promote fair, transparent, and ethical practices in all dealings with customers.
  • Establish and maintain a respectful and professional relationship between the customer and the Company.
  • Ensure compliance with all applicable laws, rules, and regulatory guidelines, particularly those related to loan recovery.
  • Provide a robust and efficient mechanism for handling and resolving customer grievances.

1. Loan Application

  • The Company provides applicants with all necessary information regarding products and services to enable meaningful comparison and informed decision-making.
  • All loan applications received by the Company shall be acknowledged. Applicants will be informed, as far as possible, about the expected timeframe for loan processing.
  • The loan application form clearly indicates the list of documents required to be submitted.
  • If additional documents or information are required, applicants shall be reasonably informed.

2. Loan Appraisal & Terms and Conditions

  • After assessing the application, the Company shall convey in writing — through a sanction letter or similar document — the approved loan amount, applicable terms and conditions, and rate of interest.
  • The Company shall record and maintain the customer’s acceptance of the terms and conditions.
  • All charges, including penal charges for late payment or prepayment, shall be clearly highlighted in the loan agreement.
  • Upon execution of the loan agreement, the customer shall receive a copy of the signed agreement along with all annexures.

3. Loan Disbursement & Changes in Terms

  • Any change in the terms and conditions — including interest rates, service charges, disbursement schedules, or prepayment terms — shall be communicated to the customer in English or in the vernacular language, if declared necessary by the customer.
  • Changes in interest rates or charges shall apply prospectively only.
  • Any decision to recall or accelerate repayment shall strictly follow the provisions of the loan agreement.
  • Upon full repayment of the loan, the Company shall release all securities, subject to any legitimate lien or set-off rights. If any set-off is to be exercised, the borrower shall be duly informed with full details.

4. Interest Rates & Charges

  • The Company follows internal policies and procedures for determining applicable interest rates, processing fees, and other charges.
  • Factors such as cost of funds, operational overheads, risk profile, and market conditions are considered in arriving at interest rates.
  • The current interest rate structure and risk gradation approach shall be displayed on the Company website and updated promptly in case of any change.
  • All interest rates shall be expressed in annualized terms so that customers clearly understand the cost of borrowing.

5. Grievance Redressal Mechanism

  • The Company is committed to the timely and fair resolution of customer grievances.
  • Complaints received from customers are examined promptly, and responses are sent as quickly as possible.
  • The Company has implemented an internal Grievance Redressal Mechanism, duly approved by the Board, for effective handling of complaints.
  • Details of the escalation matrix and grievance redressal process are outlined in the Grievance Redressal Policy.

6. Force Majeure

The commitments and service standards outlined in this Code apply under normal operating conditions.
 In the event of Force Majeure circumstances — such as natural disasters, system failures, or extraordinary events — the Company may be unable to meet certain obligations temporarily.

7. Periodic Review

To ensure continuous improvement and relevance, the Company’s Board of Directors shall review the Fair Practices Code annually and ensure full compliance.