INTRODUCTION
The Reserve Bank of India (RBI) had issued the guidelines on Fair Practices Code for Non-Banking Finance Companies(NBFCs) in Master Direction DNBR. PD. 008/03.10.119/2016-17 (as and when amended), which sets the standards of fair practice when dealing with individual customers and to serve as a part of best corporate practice. Based on this, Bharatiya Fincom Pvt Ltd(“the Company”) formulated this Policy known as Fair Practices Code (“FPC”).
It is, and shall be, the policy of the Company to make loan products available to all qualified applicants without discrimination on the basis of race, caste, color, religion, sex, marital status or handicap. All the customers will be treated consistently and fairly. The employees of the Company will offer assistance, encouragement and service in a fair, equitable and consistent manner. The Company shall also communicate the FPC to its customers by placing it on the Company’s website (https://www.stfc.in).
The Company shall ensure that charges / fees are appropriately informed to the customer. Terms and conditions pertaining to the facility will be conveyed to the prospective customers. The Company commits that disputes arising out of the lending decisions will be appropriately resolved by the Company’s grievance redressal mechanism.
The Company’s Fair lending practices shall apply across all aspects of its operations including marketing, loan origination, processing, servicing and collection activities. The Company’s commitment to FPC would be demonstrated in terms of employee accountability, monitoring and auditing programs, training and technology.
The Company’s Board of Directors and the Management Team is responsible for establishing practices designed to ensure that the Company’s operations reflect strong commitment to fair lending and that all employees are aware of that commitment. The Company is committed to providing service of the highest quality to its clients. FPC based on the RBI directions shall be put in place by the Company with the approval of the Board. This FPC applies to all the categories of products and services the Company offers (currently offered or which may be introduced at a future date). The FPC applies to the above, irrespective of whether the same is provided at the Branch, over the phone, on the Internet or by any other method the Company may be currently using or may introduce at a future date.
KEY COMMITMENTS
Bharatiya Fincom Pvt Ltdwill provide information on the various channels that can be used to access its products and services. The customer will also be informed on where further information on this is available.
All communications to the borrower shall be in a language as understood by the borrower.
BHARATIYA FINCOM PVT LTD shall convey in writing to the borrower using a sanction letter or otherwise, the amount of loan along with the terms and conditions, including annualized rate of interest and method of application thereof, and keep the acceptance of these terms and conditions by the borrower on its record.
As complaints received against NBFCs generally pertain to the charging of high interest/penal interest, or harassment and abuse, BHARATIYA FINCOM PVT LTD shall specifically mention the penal interest charged for late repayment in the loan agreement and resolve other issues related to harassment or abuse through counselling and training. Appropriate internal principles and procedures shall be laid down and be subjected to review keeping in view the business exigencies, regulatory and customer sentiments, market practices, etc. The acceptance of the terms and conditions communicated by the borrower shall be preserved by the Company in its records.
BHARATIYA FINCOM PVT LTD shall furnish a copy of the loan or any such agreement along with a copy of each of all enclosures of loans. The Company shall give notice to the borrower in the vernacular language as understood by the borrower of any change in the terms and conditions, including disbursement schedule, interest rates, service charges, prepayment charges, etc. The Company shall ensure that changes in interest rates and other charges are effected only prospectively. The loan agreement shall contain a specific clause to this effect. The decision of the Company to recall/accelerate payment or performance shall be in consonance with the terms of the loan agreement.
The Company shall release all securities upon repayment of all dues or on the realization of the outstanding loan amount subject to any legitimate right or Lien for any other claim, it will have against the borrower. In case such right of set-off is to be exercised, the borrower shall be given due notice with full particulars about the outstanding claims and the conditions under which the Company is entitled to retain the securities till the relevant claim is settled/paid.
GENERAL CLAUSES
BHARATIYA FINCOM PVT LTD shall refrain from interfering 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 deliberately or otherwise by the borrower, has come to its notice.
In case of receipt of the request from the borrower for transfer of a borrower account to other NBFC, bank of the financial institution, the consent or otherwise shall be conveyed within 30 days from the date of receipt of such request. Such transfer shall be in accordance with the loan agreement and the Company’s Product Policy guidelines
In the matter of recovery of loans, the Company shall resort only to remedies which are legally and legitimately available to it and will avoid using recovery measures during odd hours of the day, undue harassment, use of muscle power for recovery of loans. BHARATIYA FINCOM PVT LTD shall ensure that the staff are adequately trained to deal with the customers in an appropriate manner.
All Terms and Conditions will be fair and will set the customers rights and responsibilities clearly and in plain language, the Company will use legal or technical language only where necessary.
The Company will make available any charges applicable to products and services applicable. If the Company increases any charges or introduces a new charge.
Marketing Material
The Company will ensure that all advertising and promotional material is clear, fair reasonable, and not misleading.
Confidentiality
Unless authorized by the customer the Company will treat all personal information as private and confidential.
The Company will not reveal transaction details to any other entity including within the group other than the following exceptional cases:
If the Company have to provide the information by statutory or regulatory laws
If there is a duty to the public to reveal this information.
If its interest requires BHARATIYA FINCOM PVT LTD to provide this information (e.g. fraud prevention). The Company will not use this reason for giving information about customers to anyone else (including group companies) for marketing purposes.
If the customer has given consent/concurrence to provide/share such information
Where the customer asks us to reveal such information to its group/associate/entities or companies for providing other services or products
Grievance Redressal Mechanism: The Company shall also lay down the appropriate grievance redressal mechanism within the organization to resolve disputes arising in this regard. Such a mechanism shall ensure that all disputes arising out of the decisions of the Company’s functionaries are heard and disposed of at least at the next higher level. The management team shall provide for periodical review of the compliance of the Fair Practices Code and the functioning of the grievances redressal mechanism at various levels of management. A consolidated report of such reviews shall be submitted to the Board at regular intervals, as may be prescribed by it. To start with Company may provide the same on a quarterly basis.
BHARATIYA FINCOM PVT LTD will guide customers who wish to lodge a complaint and also provide guidance on what to do in case the customer is unhappy with the outcome.
After examining the matter, the Company will respond as soon as possible; the Company will also guide a customer on how to take the complaint further if the customer is not satisfied.
A nodal officer shall be appointed for the redressal of grievances. The name and contact details of the nodal officer shall be displayed in the website of the Company.
Internally constituted Customer Grievance Redressal Council comprising senior management officials to review with the nominated Officer and oversee the Grievance Redressal Mechanism.
If the complaint/dispute is not redressed within a period of one month, the customer may appeal to the CEO
Repossession of vehicles/assets: The Company shall have a built-in re-possession clause in the contract/loan agreement with the company with whom the loans have been purchased or with borrower, which shall be legally enforceable. To ensure transparency, the company shall follow :
Notice period before taking possession;
The company shall specify Circumstances under which the notice period can be waived;;Provision regarding final chance to be given to the borrower for repayment of the loan before the sale/auction of the property; the Procedure for giving repossession to the borrower, Procedure for sale/auction of the property.
Regulation of Excessive Interest Rate
The Company will abide by all guidelines, directives, instructions and advice of the Reserve Bank of India as will be in force from time to time. The contents in this document shall be read in conjunction with these guidelines, directives, instructions and advice. The Company will apply better practice so long as such practice does not conflict with or violate Reserve Bank of India regulations.