Fair Practices Code
The Company’s business would be conducted in accordance with prevailing statutory and regulatory requirements, with due focus on efficiency, customer-orientation and corporate governance principles – all of which form part of the Company’s approved Investment & Credit Policy. In addition the the Company would adhere to the Fair Practices Code in its functioning.
Fair Practices Code for M/s. SANTOSH INDUSTRIES LIMITED
(i) Application for loans and their processing
(a) Loan application shall include necessary information which affects the interest of the borrower; so that a meaningful comparison with the terms and conditions offered can be made and informed decision can be taken by the borrower. The Loan Application will include the general particulars of the borrower like Name, Address, Date of Birth / Date of Incorporation, Photograph, Phone No. etc. and the Rate of Interest, Repayment Schedule, Comparative Terms and Conditions. The applicant should submit along with the application form Pan Card, Photo Identity Proof, Residence Proof, Income Proof etc.
(b) All communications to the borrower will be in the vernacular language or a language as understood by the borrower.
(c) The company will give an acknowledgement for receipt of all loan applications and shall dispose of all the loan applications within three weeks from the date of receipt of loan application.
(d) All necessary documentation shall be collected from the borrower to comply with KYC norms of RBI.
(ii) Loan appraisal and terms/conditions
On receipt of application for loan by any borrower along with the necessary documents, Directors or any senior executive of the company will go through it and forward the same to the members of the Risk Management Committee for their approval.
On receipt of approval from the Risk Management Committee, the company will convey in writing to the borrower in the vernacular language as understood by the borrower by means of sanction letter or similar, the amount of loan sanctioned along with the terms and conditions including annualized rate of interest. The acceptance of these terms and conditions by the borrower will be kept in records of the company.
A copy of the loan agreement, sanction letter, or similar document with all the terms and conditions of the agreement will be given to the client in writing at the time of loan disbursement.
We shall mention the penal interest charged for late repayment in the loan agreement.
(iii) Disbursement of loans including changes in terms and conditions
(a) Any change in the disbursement schedule, interest rates, service charges, prepayment charges etc will be given to the borrower in writing at least 15 days of any such change. We will ensure that changes in interest rates and charges are effected only prospectively.
(b) 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 borrower. In such cases, the borrower shall be given notice about the same with full particulars about the remaining claims and the conditions under which company is entitled to retain the securities till the relevant claim is settled / paid.
The company will refrain from interference 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 by the borrower, has come to the notice of the company and has a material impact on the terms of the loan agreement, or otherwise warranted for the recovery of dues or misleading information provided by the borrower).
(v) Appropriate Grievance Redressal Mechanism
The company shall display following information on the Notice Board at the office of the Company where bisiness is transacted:
Name of Grievance Redressal Officer and contact details of the office where customers can direct their grievances.
If the complaint / dispute is not redressed within a period of one month, the customer may appeal to the Officer-in- Charge of the Regional Office of Department of Non-Banking Supervision (DNBS) of Reserve Bank of India (RBI).
Address of the Regional Office of Department of DNBS of RBI
Department of Non-Banking Supervision Kolkata Regional Office
15, N. S. Road,
Kolkata – 700001
Telefax : 033 2230 8331 / 033 2231 3185
Email : [email protected]
(vi) Interest charged by the Company
(a) The Company has adopted an interest rate model taking into account relevant factors such as, cost of funds, margin and risk premium, etc and determined the rate of interest to be charged for loans and advances. The rate of interest and the approach for gradations of risk and rationale for charging different rates of interest to different categories of borrowers shall be disclosed to the borrower or customer in the application form and communicated explicitly in the sanction letter.
(vii) Complaints about excessive interest charged by NBFCs
The Company has laid down appropriate internal principles and procedures in determining interest rates and processing charges and other charges and Application form for loans shall include necessary information which affects the interest of the borrower; all the terms and conditions for loans to be advanced should be detailed in the application form itself.
(viii) Clarification regarding repossession of vehicles financed by NBFCs
At present the company is not engaged in any activity of vehicles financing. However, the Company shall comply with the Fair Practice Code in this regard as and when it starts its operations in the said line.
(ix) NBFC-MFIs: The Company is not a NBFC-MFI company and therefore the clause is not applicable to the Company.
(x) Lending against collateral of gold jewellery:
At present the Company does not give loans against collateral of gold jewellery. However, the Company shall comply with Fair Practice Code in this regard as and when it starts lending against collateral of Gold Jewellery.