Fair Practice Code
Reserve Bank of India vide its Master Direction DNBR.PD.007.03.10.119/2016-17 dated September 1st, 2016, as amended from time to time, has issued guidelines for Non-Banking Financial Company-Systemically Important Non Deposit taking Company (Reserve Bank) Directions, 2016 on Fair Practices Code. Accordingly, following is the amended Fair Practices Code of Poonawalla Finance Private Limited (formerly known as Adar Poonawalla Finvest Private Limited) (“the Company”) as framed and approved by its Board of Directors.
The objectives of this Code are:
- To implement and promote industry standard practices in dealing with its customers.
- To create and maintain adequate mechanisms for redressal of customer grievances.
- To promote a fair and cordial relationship with transparency between the customer and the Company.
- To ensure regulatory compliance with applicable laws and regulations.
Applications for loans and their processing :
- All communications to the borrower shall be in the vernacular language or a language as understood by the borrower.
- The Loan application forms shall 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 shall indicate the documents required to be submitted with the application form.
- The Company shall devise a system of giving acknowledgement for receipt of all loan applications through email and/or short message service. The time frame within which loan applications will be disposed of shall also be indicated in the acknowledgement.
- No customer will be discriminated on grounds of Sex, Caste and Religion in the matter of lending.
Loan appraisal and terms/conditions:
- The Company shall convey to the borrowers in writing whether their loan application is sanctioned or not, the amount of loan sanctioned along with the terms and conditions including annualised rate of interest and method of application thereof. Further, the Company shall keep the acceptance of these terms and conditions by the borrower on its record. The Company shall mention the penal interest that shall be charged for late repayment in bold in the loan agreement.
- Once the loan agreement is executed between the Company and the borrower, a copy of the same along with all annexures shall be furnished to the borrower.
Disbursement of loans including changes in terms and conditions:
- The Company shall give notice to the borrower in the vernacular language or a language as understood by the borrower of any change in the terms and conditions including disbursement schedule, interest rate, service charges, prepayment charges, etc. The Company shall also ensure that changes in interest rate and charges are affected only prospectively. A suitable condition in this regard shall be incorporated in the loan agreement.
- The clause relating to Penal interest charged for late payment as well as the definition of overdue interest will be highlighted in bold in the loan agreement.
- Decision to recall / accelerate payment or performance under the agreement shall be in consonance with the loan agreement.
- 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 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.
Other General Terms and Conditions:
- The Company shall 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).
- In case of receipt of request from the borrower for transfer of borrower’s account, the consent or otherwise i.e. objection of the Company, 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.
- The Company shall lay down appropriate internal principles and procedures in determining interest rates, processing and other charges.
- In the matter of recovery of loans, 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 shall ensure that the staff are adequately trained to deal with the customers in an appropriate manner.
- Company will not charge foreclosure/pre-payment penalties on all floating rate Term Loans sanctioned for purposes other than business to individual borrowers, with or without co-obligant(s).
Regulation of Excessive Interest Charged
- The Company has laid down appropriate internal principles and procedures in determining interest rates and processing and other charges. The rate of interest to be charged depends upon the gradation of the risk parameters of borrower viz. the financial strength, business model, Capability of repayment, regulatory environment affecting the business, competition, history of the borrower etc. The rate of interest and total interest amount to be paid over complete tenure of loan will be communicated so that the borrower is aware of the exact interest liability that would be charged to the borrower.
- Customer complaints/ grievances shall be handled by the Grievance Redressal Officer appointed by the company. The Grievance Redressal Officer will be available between 10:30 am and 6:30 pm, from Monday to Friday (except on national holidays). Customers can call on + 91 8669926667 or send an email to email@example.com
- If the grievance/dispute is not redressed within a period of one month, the customer may appeal to the Officer-in-Charge of the Regional office of Reserve Bank of India.
The details of Grievance Officer and Officer-in-Charge has been provided hereunder
Name of the Grievance OfficerMr. Amar Sudhakar Deshpande
Office Address101, Sky Station, Datta Mandir Chowk, Viman nagar, Pune-411014
Working Hours10.30 am to 6.30 pm from Monday to Friday (except national holidays)
Officer-in ChargeGeneral Manager
Office AddressDepartment of Non Banking Supervision (DNBS), Mumbai Regional Office,3rd Floor, Reserve Bank of India, Opp. Mumbai Central Railway Station, Byculla, Mumbai -400008
The Board of Directors shall lay down an escalation mechanism within the organisation to ensure that all the disputes are heard and disposed of at least at the next higher level.
Periodical review of the compliance of Grievance Redressal Mechanism will be taken at various levels of Management. A consolidated report of the same shall be submitted to the Board of Directors at regular intervals.