Fair Practice Code
Amros Commercial Private Limited (hereafter referred to as ‘the ACPL’/ ‘the Company’) is a private limited company incorporated under the provisions of the Companies Act, 1956 and is a Reserve Bank of India (RBI) registered Non Systemically Important Non-Deposit Accepting or Holding NonBanking Financial Company (“NBFC-NDSI”).
The Company is a subsidiary of Sahas Technologies Private Limited
ACPL has adopted the Fair Practices Code (the “FPC”) pursuant to Reserve Bank of India’s (“RBI”) Master Direction-NBFC- Non-Systemically important Non-Deposit taking Company ( Reserve Bank) Directions, 2016 dated September 1, 2016 and updated as on February 22, 2019 The Company would update the FPC to conform to the standards that may be prescribed by RBI from time to time. The Company would abide by this FPC following the spirit of the Code and applicability to its business.
The FPC has been approved by the Board of Directors of the Company and the same will be disclosed on the Company’s website.
OBJECTIVE OF THE CODE
This Code has been developed to:
- Promote good, fair and trustworthy practices by setting minimum standards in dealing with the customers;
- Increase transparency to enable the customers to have a better understanding of what they can reasonably expect of the services;
- Encourage market forces, through competition, to achieve higher operating standards;
- Make sure company will assist its customers in understanding the broad features of its financial products and will provide them with key terms and conditions governing sanction of credit facilities.
The Fair Practices Code is aimed to provide to the customers effective overview of practices, which will be followed by the Company in respect of the financial facilities and services offered by the Company to its customers. The Code will facilitate the customers to take informed decisions in respect of the financial facilities and services to be availed by them and will apply to any loan that the Company may sanction and disburse.
The Company will ensure that the implementation of the Fair Practices Code (FPC) is the responsibility of the entire organization. The Company’s fair lending practices shall apply across all aspects of its operations including loan origination, processing, servicing and collection activities. Its commitment to FPC will be demonstrated in terms of accountability, training, counselling, monitoring, auditing programs and internal controls and optimal use of technology.
Additional guidelines on fair practices mandated by RBI vide notification dated March 26, 2012, for NBFC-MFI and for NBFCs engaged in lending against collateral of gold jewellery are not applicable to The Company, since it does not engage in such activities
The Company shall offer all financial products, to eligible qualified applicants, without discrimination on the basis of caste, colour, creed, race, religion, sex or handicap.
LOAN APPLICATION AND ITS PROCESSING
- All communications to the borrowers shall be made in vernacular language or a language as understood by the borrower.
- The Company will offer credit to eligible qualified applicants who express their need to borrow through their loan request letter or loan application forms.
- The loan application form would indicate the documents required to be submitted by the borrower. It would also indicate the rate of interest that will be charged to different categories of borrowers.
- The Company shall issue an acknowledgement receipt for all loan applications. Subject to receipt of all the requisite documentation and information, loan applications shall be disposed of within 30 days, from the date of receipt of the application form complete in all respects. In any case the Customer will be kept informed by the sales person with regards to the status of his application from time-to-time. The Customer may also contact customer service team at the prescribed contact number or email id to obtain an update on the status of application.
- If any additional details/ documents are required, the same shall be intimated to the borrowers immediately.
LOAN APPRIASAL AND TERMS / CONDITIONS
- The Company shall conduct a due diligence on the credit worthiness of the borrower, which will be an important parameter for taking decision on the application. The assessment would be in line with the Company’s credit policies, norms and procedures in respect thereof.
- The Company would convey in writing to the customers/borrowers by means of a sanction letter, the amount of loan sanctioned along with the terms and conditions including the annualised rate of interest and method of application thereof. In case of specific app based/paperless loans provided, the Company would convey the details mentioned above through App to the registered borrower.
- The Company would keep on its record the acceptance by the customers/borrowers of the terms and conditions governing the sanction of the loan. In case of app based/paperless loans, request by the borrower to disburse the sanctioned loan amount or part thereof or e signing the loan agreement would be deemed to be acceptance by the borrower of the terms and conditions governing sanction of loan.
- The Company shall have a built-in repossession clause wherever applicable in the contract/Loan Documents so as to have legal enforceability.
- At the time of sanction/disbursement of loans, the Company would furnish to all customers/borrowers a copy of the loan agreement/terms and conditions if any along with a copy of all enclosures mentioned in the loan agreement.
DISBURSEMENT OF LOANS INCLUDING CHANGES IN TERMS / CONDITIONS
- The Company shall frame appropriate internal principles and procedures for determining and ensuring that the interest rates and processing and other charges are not excessive. The Company shall, at the time of disbursal, ensure that the interest rate and processing and other charges on loan and advances are in strict adherence to above referred internal principles and procedures.
- The disbursement will be made upon compliance of all the terms and conditions of sanction of loan by the customers/borrowers. The Company would give notice to the customers/borrowers of any change to the terms and conditions, including disbursement schedule, interest rates, service charges, prepayment charges, etc.
- The Company shall give a 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, pre-payment charges etc. The Company shall also ensure that changes in interest rates and charges are affected only prospectively. A condition to this effect shall be incorporated in the Loan Documents.
POST DISBURSAL MONITORING / SUPERVISION
- Any decision to recall/accelerate payment or performance under the Loan Documents shall be in consonance with the Loan Documents.
- All securities offered by the borrower shall be released on repayment of all dues or on realization 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/ paid.
- The Company shall not interfere in the affairs of the borrower except for the purposes provided in the Loan Documents, unless new information not earlier disclosed by the borrower has come to the notice of the Company.
- In the matter of recovery of loans, the Company shall not resort to undue harassment like bothering the borrowers at odd hours, use of muscle power for recovery of loans etc. The Company shall ensure that their staffs are adequately trained to deal with the customers in an appropriate manner.
- The Company or its representative will call delinquent customers between 0700 hrs to 2100 hrs unless special circumstances of the borrower’s business require to call them otherwise outside the hours mentioned.
- The Company may arrange for enforcing security charged to it of the delinquent borrower, if required, with an aim only to recover dues and will not be aimed at whimsical deprivation of the property.
- The Company shall ensure that the entire process of enforcing its security, valuation and realisation thereof be fair and transparent.
- In case of receipt of a request from the borrower for transfer of the borrower’s account to other NBFC or Bank, the consent or otherwise i.e. objection of the Company, if any, shall be conveyed within 21 days from the date of receipt of such request in writing. Such transfer shall be as per transparent contractual terms in consonance with law.
COMPLAINT REDRESSAL MECHANISM
- A contact number for recording the grievances of the customers will be intimated the Application Form/Sanction Letter/other document issued to the borrower. In addition, a separate e-mail ID will be created where customer can send their grievances via e-mail.
- After examining the matter, the Company will endeavor to send the customer its response within four weeks and intimate the customer how to escalate the complaint to higher level, if he is not satisfied with the response. The Company has set up product wise turn-around time (“TAT”) for resolution of customer grievances within the above period of four weeks and shall ensure to resolve the complaints within such defined TATs.
- If the grievance is not redressed within the Turn-Around-Time (TAT) referred above, the customer may appeal to:
- The Company shall request the customer to provide feedback on the services rendered. This can be done through direct contact by staff or through specific customer satisfaction surveys that may be conducted from time to time.
- A periodical review of the Fair Practices Code and the functioning of the Grievances Redressal Mechanism at various levels of management would be undertaken by the Company and a consolidated report of such reviews shall be submitted to the Board of Directors of the Company at regular intervals.
The Officer in Charge,
Department of Non-Banking Supervision,
Reserve Bank of India,
3rd Floor, Opposite Mumbai Central Railway Station,
Byculla, Mumbai – 400 008,
Email id: firstname.lastname@example.org
DETERMINING INTEREST RATES, PROCESSING AND OTHER CHARGES
- The Company would lay down appropriate internal guidelines and procedures for determining interest rates and processing and other charges, keeping in view the guidelines indicated in the Fair Practices Code.
- The Company would ensure that it will not unduly charge excessive interest rates to its borrowers. The interest rate for its customers/borrowers would be arrived at taking into account the broad parameters such as risk profile of the customers/borrowers, interest rate trends prevailing in the money market, cost of borrowings, primary and collateral security offered by customers/borrowers, structure of the deal, interest rate charged by competitors and the historical track record of the customers/borrowers with the Company.
- Interest rates, processing fees and tenure would be intimated to the customers/borrowers at the time of sanction/ availing of the loan.
- The Company shall abide by this Fair Practices Code following the spirit of the Code and in the manner it may be applicable to its business.
COMPLIANCE WITH THE FPC
An annual review of the compliance with the FPC and the functioning of the grievances redressal mechanism would be conducted. A consolidated report of such review would be submitted to the Board of Directors every year.