FAIR PRACTICES CODE
SelFin India Financial Services Pvt. Ltd. (SelFin), based on the broad guidelines issued by the RBI to NBFCs on ‘fair practices code’ in the Master Circular issued by the RBI vide Circular No. RBI/2015- 16/DNBR(PD) CC.No.054/03.10.119/2015-16 dated July 01, 2015, has formulated this Fair Practices Code (“Code”).
Objective of the Code
This Code sets the minimum fair practice standards to be followed by all the employees and representatives of SelFin while dealing with its customers. The primary objectives are as follows:
- Ensure fair practices while dealing with customers;
- Provide transparency in all transactions, thereby enabling customers to have a clear understanding of the products and services (including the terms and conditions of the products and services);
- Build customer confidence in SelFin.
Guidelines on Fair Practices Code
(i) Applications for loans and their processing
(a) All communications to the borrower shall be in the English language or a language as understood by the borrower.
(b) 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 may indicate the documents required to be submitted with the application form.
(c) The company shall devise a system of giving acknowledgement for receipt of all loan applications. Preferably, the time frame within which loan applications will be disposed off.
(ii) Loan appraisal and terms/conditions
The company shall convey in writing to the borrower in the language as understood by the borrower 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 and keep the acceptance of these terms and conditions by the borrower on its record.
The company shall also via loan agreement furnish the penal interest charges for late payment.
The company shall also furnish a copy of the loan agreement and sanction letter to the borrower.
(iii) Disbursement of loans including changes in terms and conditions
(a) The company shall give notice to the borrower in the language as understood by the borrower of any change in the terms and conditions including disbursement schedule, interest rates, service
charges, prepayment charges etc. The company shall also ensure that changes in interest rates and charges are effected only prospectively. A suitable condition in this regard shall be incorporated in the loan agreement.
(b) Decision to recall / accelerate payment or performance under the agreement shall be in consonance with the loan agreement.
(c) 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 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.
(a) 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 information, not earlier disclosed by the borrower, has been noticed).
(b) In the matter of recovery of loans, the company shall not resort to undue harassment viz; persistently bothering the borrowers at odd hours, use muscle power for recovery of loans etc.
(c) The company shall furnish re-possession clause in the loan agreement.
(d) In case of receipt of request from the borrower for transfer of borrowal account, the consent or otherwise i.e. objection of the NBFC, if any, should 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.
(v) Responsibility of Board of Directors
The Board of Directors of the company shall lay down the appropriate grievance redressal mechanism within the organization. Such a mechanism shall ensure that all disputes arising out of the decisions of the company are heard and disposed of at least at the next higher level. The Board of Directors shall also provide for periodical review of the compliance of the Fair Practices Code and the functioning of the grievance redressal mechanism at various levels of management. A consolidated report of such reviews shall be submitted to the Board at regular intervals, as may be prescribed by it.
(vi) Grievance Redressal Mechanism
The following grievance redressal shall enable customers to raise complaints and the company shall resolve or at-least dispose of the complaints to next higher level:
Write to us at firstname.lastname@example.org or call us at 022-62366996 to submit your query
- Grievance Officer – Mrs. Ledwin Singh
Mailing Address: 603, the Co Working space, Sunrise Tower, 2nd Floor, Plot No C-10 Central Road, MIDC Andheri East, Mumbai, Maharashtra- 400093
In case the customer is not satisfied with the resolution provided by SelFin or if the complaint is not resolved within one month of the complaint being made, customer may contact the officer-in-charge of the Regional Office of the Department of Non-Banking Supervision (DNBS) of the RBI:
The Reserve Bank of India,
Department of Non-Banking Supervision,
Mumbai Regional Office, 3rd Floor, RBI Building,
Opp. Mumbai Central Railway Station, Near Maratha Mandir,
Byculla, Mumbai – 400 008
Tel: 022-2308 4121/2302 8436
(vii) Rate of Interest
SelFin shall form appropriate interest principles and gradation policies to ensure fair interest charges are levied.
The interest rates and charges shall be based on SelFin’s internal policies and risk assessment of the customer.
The company shall inform about the interest rates and charges to the borrower via loan agreement and sanction letter in the language understood by the customer.
The details regarding interest charges, fees, etc. shall be made available on our website: www.selfinindia.com under Interest rates gradation policy.
(viii) Changes to the Code
Any amendments or change in this Code shall be uploaded on SelFin’s website from time to time, www.selfinindia.com.