Fair Practice Code


Poonawalla Finance Private Limited (“PFPL”), a Systemically Important non-deposit taking Non-Banking Finance Company (“NBFC-ND-SI”) registered with the Reserve Bank of India (“RBI”) is presently engaged in the business of extending financial facility in the form of loans including business loan, loan to professionals and personal loan. The credit facilities are extended to different types of customers, which include individuals, professionals, MSMEs, etc.

PFPL has put in place the Fair Practice Code (“FPC”) as per the RBI directives and it has been duly approved by the Board of Directors. The FPC sets out the principles for fair practices/ standards while dealing with its customers.

PFPL has adopted the FPC and has implemented it. The FPC applies to all the categories of products and services offered by PFPL (currently offered and which may be introduced in future).


  • To promote good and fair practices by setting minimum standards in dealing with customers;
  • To increase transparency so that the customer can have a better understanding of what they can reasonably expect of the services;
  • To encourage market forces, through competition, to achieve higher operating standards;
  • To promote a fair and cordial relationship between customer and PFPL; and to foster confidence in the investment services system.;
  • To strengthen mechanisms for redressal of customer grievances;


The FPC shall apply to all the employees of PFPL and other persons authorized to represent it in the course of its business, whether the products and services are provided across the counter, over the phone, by post, through interactive electronic device, on the internet or by any other method.


PFPL shall adhere to the FPC to act fairly and reasonably in all dealings, on the ethical principle of integrity and transparency, to meet the standard practices prevalent in the financial and investment services industry.

PFPL would provide clear information, without any ambiguity, to the customers in understanding:

  • Products and services together with its terms and conditions including interest and service charges.
  • Annualized rate of interest and method of application thereof.
  • Benefits available to customer.

PFPL will deal quickly and sympathetically in correcting mistakes, if any, and attend to customer complaints in light of the objectives of the FPC.

PFPL will ensure that the Penal interest charged for late payment as well as the definition of overdue interest will be highlighted in bold in the loan agreement.

PFPL shall treat all personal information of customers as private and confidential and shall not divulge any information to third person unless required by any law or Government authorities including Regulators or Credit Information Bureaus or where the sharing of information is permitted by the customer.

PFPL would provide, on request, copy of the FPC to the existing borrowers and new customer(s) prior to the commencement of business transaction.

PFPL shall not discriminate its customers on the basis of race, caste, gender, marital status, religion and, or disability. However, the restrictions, if any, as mentioned in the respective loan products shall continue to apply.

PFPL shall refrain from interference in the affairs of the borrowers except for the purposes provided in the terms and conditions of the loan/ master loan agreement (unless new information, not earlier disclosed by the borrower, has come to the notice of PFPL).

PFPL shall ensure that the changes in the interest rates and, or charges are effected only prospectively.


PFPL would provide information on the interest rates, common fees and charges, as ay be applicable, through:

  • Putting up notices in the branches;
  • Through telephones or help lines;
  • Through website of the Company
  • Through designated staff/ help desk; and
  • Providing service guide/ tariff schedule.

PFPL shall not charge foreclosure charges/ pre-payment penalties on any floating rate term loan sanctioned for purposes other than business to individual borrowers, with or without co-obligant(s).


PFPL shall ensure that all the advertising and promotional material is clear and not misleading. The FPC shall also apply to the sales associates/ representatives of PFPL to the extent of their identification when they approach the customer for selling products personally. In case of any advertisement in any media and promotional literature that draws attention to a service/ product and its interest rate, PFPL shall also provide the details of other fees or charges, if any. Further, on the request of the customer, PFPL shall provide the details of relevant terms and conditions.


PFPL would give information about the customers to the credit information companies on:

  • Opening of an account;
  • The customer delaying his/ her payments and the performance of loan account, which includes how much loan has been sanctioned and the subsequent performance;
  • Legal proceedings have been initiated against the customer to recover the dues; and
  • Debts settled through legal recourses against the customer.

PFPL may give other information about the customer's account, to the CICs, or in case the customer has given his/ her/ its explicit permission to do so, in accordance with such authorization.


Whenever loans are given, PFPL would explain to the customer the repayment process by way of amount, tenure and periodicity of repayment. However, if the customer does not adhere to repayment schedule, a defined process in accordance with the applicable laws shall be followed for recovery of dues. The process will involve reminding the customer by sending him/ her/ them notice or by making personal visits, if any.

PFPL staff or any person authorized to represent PFPL in collection of dues shall identify himself/ herself and display the authority letter issued by PFPL and upon request, display his/ her identity card issued by PFPL or under authority of PFPL. PFPL shall provide the customers with all the information regarding overdue amounts/ loan accounts.

During visits to customer's place by the person authorised by PFPL for dues collection the following guidelines shall be followed:

  • Customer would be contacted ordinarily at the place of his/ her/ its choice and in the absence of any specified place of choice, at the place of his/ her/ its residence/ place of business/ occupation.
  • Identity and authority to represent PFPL shall be made known at the first instance.
  • Customer’s privacy should be respected.
  • Interaction with the customer shall be in a civil manner
  • The representatives of PFPL shall contact the customers between 07:00 hrs and 19:00 hrs unless the special circumstances of the customer’s business or occupation specify otherwise.
  • Customer’s request to avoid calls at a particular time or at a particular place should be honored as far as possible.
  • Time and number of calls and contents of conversation would be documented.
  • All assistance should be given to resolve disputes or differences regarding dues in a mutually acceptable and in an orderly manner.
  • During visits to customer’s place for dues collection, decency and decorum be maintained.
  • Inappropriate occasions such as bereavement in the family or such other occasions should be avoided for making calls/ visits to collect dues.


PFPL shall explain the requirements of KYC guidelines to its customers and inform them about the documents required for establishing the identity of the customer before loan sanctioning and operation. PFPL shall also put the KYC requirements on the website of PFPL www.poonawallafinance.com for the benefit of the customers.

PFPL would obtain such information to meet with PFPL's KYC, Anti-Money Laundering or any other statutory requirements. In case any additional information is required, it will be sought separately and the objective of obtaining such additional information shall be specified.


  • At the time of sourcing a loan product to the borrower, PFPL shall provide information about interest rates applicable, as also the fees/ charges, if any, payable for processing, pre-payment options and charges, if any, and any other matter which affects the interest of the borrower in vernacular language or a language as understood by the borrower.
  • All particulars required for processing the loan application shall be submitted to PFPL at the time of application. In case it needs any additional information, PFPL would contact the customer.
  • PFPL shall convey to the customer about the loan sanction along with the terms and conditions thereof and keep the acceptance of these terms and conditions by the borrower on its record.
  • The customer is entitled to one set of authenticated loan documents on execution of the same.
  • PFPL shall not discriminate on grounds of sex, caste and religion in the matter of lending. However, this does not preclude PFPL form instituting or participating in schemes framed for different sections of the society.
  • PFPL at its discretion shall process requests for transfer of a loan account, either from the borrower or from a bank/ financial institution, in the normal course. PFPL shall convey the consent or objection as the case may be within 21 days from the receipt of the request.
  • Before taking a decision to change any terms and conditions including disbursement schedule, interest rate, service charges, recall/accelerate payment or performance under the master financing/ loan agreement or seeking additional securities or any other charges, PFPL shall give notice to borrowers in consonance with the master financing/ loan agreement. Any changes to the above charges shall be made available at our branches and also on the website of the company (www.poonawallafinance.com). The website address is also available on the application form.
  • PFPL shall release all securities on repayment of all dues or on realization of the outstanding amount of loan alongwith interest, charges, etc. subject to any legitimate right or lien for any other claim that PFPL 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 PFPL is entitled to retain the securities till the relevant claim is settled/paid.


When a person is considered to be a guarantor to a loan, PFPL shall inform him/ her/ them the following under acknowledgement-

  • Letter/ Deed of Guarantee stating the terms of liability as guarantor.
  • PFPL shall keep the guarantor informed of any default in servicing of the loan by the customer/ borrower to whom he/ she/ it stands as a guarantor


Customers should be able to access PFPL through any of the following means:

  • Walk-In to branches (as mentioned in the brochure/ website/ any other leaflet of PFPL); and, or
  • Telephone, Fax and Email ID (as mentioned in brochure/ website/ any other leaflet of PFPL).


PFPL would strive for customer satisfaction within the framework of law, adopted policies and procedures.

In case of any grievance, the customer may approach the in-charge of the business location where he/ she/ it had his/ her/ its account and register the complaint in the 'Complaint Register' available with the in-charge. PFPL has in place the recording and resolving process of the customer grievances. The process broadly includes mode of receipt and resolution of complaints and turnaround time for resolution.

On registering the complaint, the customer should obtain complaint number and date for future reference.

The customer may also write/ communicate with the concerned location for redressal of the grievance.

In case the response is unsatisfactory or no response is received, the complaint shall escalate using the escalation matrix intimated to customers so that the customer grievance is resolved speedily.

The Company had disclosed the following at all its branches/ places where business is transacted and on its website

  • the name and contact details (Telephone / Mobile nos. as also email address) of the Grievance Redressal Officer who can be approached by the public for resolution of complaints against the Company.
  • that 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 DNBS, Mumbai.
  • the name and contact details (Telephone/ Mobile numbers as also email addresses) of the PNOs/NOs/GROs and the name and contact details of the Ombudsman, who can be approached by the customer.


  • PFPL shall ensure all personal information of customers are treated as private and confidential [even when the customers are no longer customers], and shall be guided by the following principles and policies. PFPL shall not reveal information or data relating to customer accounts, whether provided by the customers or otherwise, to anyone, including other companies or entities in their group, other than in the following exceptional cases:
    • If the information is to be given as per the RBI guidelines or any statutory requirement or applicable law;
    • If there is a duty towards the public to reveal the information;
    • If the Company’s bonafide interests requires them to give the information (for example, to prevent fraud) but it should not be used as a reason for giving information about customer or customer accounts [including customer name and address] to anyone else, including other companies in the group, for marketing purposes;
    • If the customer asks the Company to reveal the information, or with the customer’s permission;
    • If PFPL is asked to give a reference about customers, they shall obtain his/ her/ it’s written permission before giving it.
  • The customer shall be informed about the extent of his/ her rights under the existing legal framework for accessing the personal records that the Company holds about him/ her.
  • PFPL shall not use customer’s personal information for marketing purposes by anyone including PFPL unless the customer specifically authorizes them to do so.
  • PFPL shall be entitled to share the loan and other information of the customer with the Credit Information Companies or any other agency or statutory authority as per the RBI guidelines.


PFPL reserves the right to amend/ alter/ modify the codes as mentioned herein above and provide updates from time to time, not affecting/ sacrificing the underlining spirit of the FPC. Such alternation/ amendments may be displayed at the notice boards of the branches/ Corporate Office for the benefit and information of the customer.