FAIR PRACTICES CODE
This Fair Practices Code has been prepared in compliance with the “Guidelines on Fair Practices Code for NBFCs” issued by the Reserve Bank of India and aims to provide its borrowers an effective overview of the practices followed by the Company and to enable borrowers to take informed decisions in respect of the financial facilities and services offered by the Company. The Code covers the general principles on adequate disclosures on the terms and conditions of the loan and the procedures to be followed when dealing with the borrowers. The Code applies to all categories of products and services offered by Mahaveer Finance India Limited
Objectives of the Code
The Following are the primary objectives of this code:
- Promote fair and transparent practices by setting minimum standards in dealings with borrowers;
- Foster fair and cordial relationship between the borrowers and the Company;
- To ensure compliance with regulatory requirements with regard to customer interface;
- To strengthen mechanisms for redressal of customer grievances.
Applications for loans and their processing
a) All communications to the borrower shall be in the vernacular language or a language as understood by the borrower.
b) Loan Application Forms 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 indicates the documents required to be submitted with the application form.
c) The Company would give acknowledgement for receipt of all loan applications. The time frame within which loan applications shall be disposed of is also indicated in the acknowledgement.
Loan appraisal and terms/conditions
The Company would ensure that there is a proper assessment of credit application made by borrowers. The assessment would be in line with the Company’s credit policies and procedures.
The Company shall convey in writing to the borrower by means of sanction letter, the amount of loan sanctioned along with the terms and conditions including annualised rate of interest and method of application thereof. The Company shall keep the acceptance of these terms and conditions by the borrower on its record.
The Company shall also communicate to the borrower if the loan is rejected. The Company should mention the penal interest charged for late repayment in bold in the loan agreement.
The Company should furnish a copy of the loan agreement preferably in the vernacular language or a language as understood by the borrower along with a copy each of all enclosures quoted in the loan agreement to all the borrowers upon the disbursement of loans.
Disbursement of loans including changes in terms and conditions
a) The Company shall give notice to the Borrower of any change in the terms and conditions including disbursement schedule, in terest rates, service charges, prepayment charges etc. The Com pany shall ensure that changes in interest rates and charges are effected only prospectively. A suitable condition in this regard be incorporated in the loan agreement.
b) Decision to recall / accelerate payment or performance under the agreement shall be in consonance with the loan agreement.
c) 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 ex ercised, 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/paid.
a) The Company would not cause interference in the affairs of the borrowers except for what is provided in the terms and condi tions of the loan agreement (unless new information, not earlier disclosed by the borrower, has come to the notice of the Company).
b) In case of receipt of request from the borrower for transfer of borrowal account, the consent or otherwise i.e. the Company's objection, if any, shall 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.
c) In the matter of recovery of loans, consistent with its policy over the years, the company shall not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans, etc.
The Company's staff are adequately trained (including not to behave rudely with the customers) to deal with the customers in an appropriate manner.
Shri S.N.Varadarajan, General Manager, Mahaveer Finance India Limited, K.G Plaza,
3rd Floor, No. 41-44, General Patters Road, Chennai 600 002, Tamil Nadu, Tel: 91 44 28614477, Mobile: 9791034088 Email address: firstname.lastname@example.org
are the Grievance Redressal Officers under the Fair Practices Code who can be approached by the public for resolution of complaints against the Company. If the complaint / dispute is not redressed within a period of one month, the customer may appeal to the Officer-in-Charge of the NBFC Ombudsman, Reserve Bank of India, Fort Glacis, Rajaji Salai, Chennai 600 001, Tamil Nadu, Tel: 044 25395488, under whose jurisdiction the registered office of the Company falls.