Fair Practice Code


Preamble

It is and shall be policy of the Asia Pragati Capfin Private Limited ("Pragati or Company") to treat all its clients consistently and fairly. It shall also communicate its Fair Practice Code (FPC) to its clients by uploading the FPC on its website

The Company’s Board of Directors and the management team are responsible for implementing the fair practices hereinafter detailed.

In pursuance of the revised directions issued by Reserve Bank of India for Non-Banking Financial Companies (NBFCs) vide its circular dated March 26, 2012 the Company, has adopted the following code for fair practices while dealing with customers. The Fair Practice Code covers the following areas :


(I). 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 will 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 will indicate the documents required to be submitted with the application form.

  • c. Receipt of completed applications forms will be duly acknowledged. The acknowledgement would also indicate the approximate timeframe within which the applicant should contact the company at its registered office to ascertain the status of the loan application.


(II). Loan appraisal and terms/conditions

  • All borrowers will be conveyed in writing in the vernacular language as understood by them by means of sanction letter or otherwise, the amount of loan sanctioned along with the terms and conditions including annualised rate of interest and method of application thereof. Company will keep the acceptance of these terms and conditions by the borrower on its record. The penal interest rate charged for late repayment will be mentioned in bold in the loan agreement.

  • A copy of the loan agreement in the vernacular language or language as understood by the borrower along with a copy each of all enclosures quoted in the loan agreement to will be given to all the borrowers at the time of sanction / disbursement of loans.


(III). Disbursement of loans including changes in terms and conditions

  • a. A notice will be given to the borrower in the vernacular language or in language as understood by the borrower of any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges etc. It will also be ensured that changes in interest rates and charges are effected only prospectively. A suitable condition in this regard will be incorporated in the loan agreement.

  • b. Decision to recall / accelerate payment or performance under the agreement should be in consonance with the loan agreement.

  • c. All securities will be released 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 Company may have against 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 Company is entitled to retain the securities till the relevant claim is settled/paid.


(IV). General

  • a. There will be no 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).

  • b. In case of receipt of request from the borrower for transfer of borrowal account, the consent or otherwise i.e. objection, if any, should be conveyed within 21 days from the date of receipt of such request. Such transfer shall be as per transparent contractual terms in consonance with law.

  • c. In the matter of recovery of loans, the Company will not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans etc. All the staff will be adequately trained to deal with the customers in an appropriate manner.

  • d. Grievance redressal mechanism : If complaint is received in writing or over phone, complaint number would be given which would be referred in future. Complaint register would be maintained. Within fifteen days, Company will endeavour to sort out the matter. In case the complaint requires more time then same would be informed to the customer. Report regarding complaint status would be presented in the Board Meeting.

  • e. The Board of Directors will also have a periodical review of the compliance of the Fair Practices Code and the functioning of the grievances redressal mechanism at various levels of management. This code shall be effective from 1st May, 2012.