[Formerly known as Nambiar Finance and Leasing Pvt Ltd]
FAIR PRACTICES CODE
Application for loans:
(a) All application/s submitted by the borrower shall be in English, Hindi or Marathi language. In case the application form is in English, the borrower will be explained all the details in a vernacular language as understood and accepted by him/her, including Marathi or Hindi, and a statement to this effect will be made a part of the Loan Application, and the Applicants’ signatures are obtained on the Form.
(b) Loan Application Forms shall include all necessary information which affects the interest of the borrower, so that a meaningful comparison with the terms and conditions offered by other Non Banking Financial Company (NBFC) can be made and informed decision can be taken by the borrower. The Loan Application form indicates the documents required to be submitted with the application form while applying for loan.
Loan appraisal and terms/conditions:
(a) The company shall issue acknowledgement for every completed Loan Application received from prospective borrowers. Indicative time frame (under normal circumstances) within which a decision on the loan proposal will be made and communicated to the Applicant, shall also be indicated in the Loan Application Acknowledgement.
(b) The company shall issue a sanction communication to every borrower, in the English language, indicating the amount of loan sanctioned, rate of interest (with method of application), processing fee, documentation cost along with the terms and conditions and keep the acceptance of these terms and conditions by the Borrower in its records. However, for the comfort and convenience of the borrower, the terms would be conveyed to the Borrower clearly, without ambiguity, in a language understood by him/her, including Marathi and Hindi. Company shall also endeavour to communicate the sanction terms in other vernacular languages in due course.
(c) The company shall clearly mention in the loan agreement the penal interest, if any, charged for late repayment of loan.
(d) The company shall not charge any foreclosure charges/ pre-payment penalties on term loans, sanctioned to individuals on floating rate of interest basis.
The company shall furnish, on demand, a copy of the loan agreement along with copies of all the enclosures to all the borrowers at the time of disbursement of loans.
Disbursement of loans including changes in terms and conditions:
(a) 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 rates, service charges, pre-payment charges etc. Changes in interest rates and charges shall be effected only prospectively as mentioned in the loan agreement.
(b) Decision to recall/ accelerate repayment under the agreement shall be in consonance with the loan agreement.
The company shall release all securities on repayment of all dues or on realization of the outstanding amount of loan subject to any legitimate right or lien for any other claim the 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 balance claim and the conditions under which the company is entitled to retain the securities till the relevant claim is settled/ paid.
Rate of Interest:
(a) The company shall frame appropriate internal policies and procedures for determining the interest rates, and processing and other charges, if any, and also to ensure that they are not excessive. The company , at the time of disbursal of loan, shall ensure that the interest rate and other charges, if any, on loan and advances are in strict adherence to above referred internal principles and procedures.
(b) The company shall disclose in the application form and explicitly in the sanction letter, the rate of interest and the approach for gradation of risk and rationale for charging different rate of interest to different categories of borrowers, if any.
The rate of interest shall be annualized rates to make the borrower aware of the exact rates that would be charged to the account.
(a) 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 lender).
(b) In the matter of recovery of loans, the company shall not resort to harassment viz. persistently bothering the borrowers at odd hours, use of physical power for recovery of loans. The company shall ensure that its staff members are adequately trained to deal with customers in an appropriate manner. All complaints from the customers shall be attended to and resolved promptly.
(c) The Board of Directors of the company shall lay down appropriate grievance redressal mechanism to resolve disputes arising within the organization. Such a mechanism shall ensure that all disputes arising out of the decisions of lending institutions’ functionaries 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 grievances 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.
(d) Borrowers, who have any grievance against the company can write to the Chief Operating Officer (COO), who also is the Grievances Redressal Officer at the following address:
The Chief Operating Officer
[Formerly known as Nambiar Finance and Leasing Pvt Ltd]
11th Floor, Vikas Centre, Dr. C. G. Road, Near Basant Theatre
Chembur East – Mumbai : 400074
Tel. No. +91 22 67842856
(e) The borrower customers can appeal to the following authority, if their complaint/ dispute is not redressed within a period of 30 days/one month :-