FAIR PRACTICE CODE
This Fair Practice Code is aimed to provide to all the stake holders, especially customers, effective overview of practices followed by the Company in respect of the financial facilities and services offered by the Company to its customers. This Fair Practice Code has been revised taking into account the “Master Direction – Non Banking Financial Company – Non Systemically Important Non – Deposit taking Company (Reserve Bank) Directions 2016
The objectives of the Code are :
- To promote good practices and ensure good practices in dealing with customers
- To promote a fair relationship between the customer and the company
- To ensure compliance with legal norms in matters relating to recovery of advances
- To strengthen mechanisms for redressal of customer grievances
A. 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.
- Loan application forms issued by the Company shall include necessary information, which affects the interest of the borrower so that he/she can do a meaningful comparison with the terms and conditions offered by other NBFCs and an informed decision can be taken by the borrower.
- The Company shall devise a system of giving acknowledgement for receipt of all loan applications. The time frame within which loan applications shall be disposed of shall also be indicated in the acknowledgement.
- The loan application form shall indicate the documents required to be submitted along with the application form.
- If any additional details/ documents are required, the same shall be intimated to the borrowers immediately
B. Loan Appraisal and Terms & Conditions
- The Company shall conduct a due diligence on the credit worthiness of the borrower, which will be an important parameter for taking decision on processing of the application. The assessment would be in line with the Company’s internal policies, norms and procedures in respect thereof.
- The Company, upon approval of the loan, shall convey the applicant through an agreement cum sanction letter or otherwise indicating the amount of loan, annualized rate of interest applicable, along with the terms and conditions
- The Company shall obtain an acceptance from the borrower of the loan terms and maintain a record of Such acceptance
- The Company shall furnish a copy of the loan agreement to the borrowers along with all the enclosures quoted in the loan agreement to the borrowers
C. Disbursement of loans including changes in terms and conditions:
- The Company shall give notice to all its borrowers 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. Any changes to the above charges shall be made available at our branches and also the website of the company (www.fullertonindia.com). The website address is also available on the application form.
- The Company shall ensure that the penal interest charged for the late payment is in “bold” fonts in The Agreement
- Any decision to recall/accelerate payment or performance under the loan agreement shall be inconsonance with the loan agreement
- All securities pertaining to the loan would be released on receipt of full and final payment of the loans, subject to any legitimate right or lien, and set -off for any other claim that FICCL may have against the borrowers. 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 ORFIL is entitled to retain the securities until the relevant claim is settled / paid
D. Interest Charged:
- The Company had laid down appropriate internal principles and procedures in determining interest rates and processing and other charges
- The Company would adopt an interest rate model taking into account relevant factors such as, cost of funds, margin and risk premium, etc. and determine the rate of interest to be charged for loans and advances
The Company has included the repossession clause in the loan agreement with the borrower that would be legally enforceable. To ensure transparency, the terms and conditions of the contract/loan agreement will include provisions regarding:
- Notice period before taking possession
- Circumstances under which the notice period can be waived;
- The procedure for taking possession of the security;
- A provision regarding final chance to be given to the borrower for repayment of loan before the sale / auction of the asset.
- The procedure for giving repossession to the borrower and
- The procedure for sale / auction of the property
F. Grievance Redressal Mechanism
The company aims to provide best customer service and is consistently striving on creating a robust and efficient customer service platform. If the customers have any issues or wish to register a complaint, they can reach us at any of the following:
- In Person – Meet the Branch Manager at the respective branch locations
- Telephone – The customer can call us and log the grievances at 1800 103 7929
- Whatsapp – The customer can share his grievance on Whatsapp No 86675 99331
- Email – Customers can write to the given email ID – email@example.com
The resolution would be provided in 15 working days
In case the complaint is not resolved within the given time or if the customer is not satisfied with the solution provided through the above channels, the customer may approach the following escalation channel with the reference of earlier communication:
Please write to the Company at the E-Mail address: The Grievance Redressal Officer Vasanthi P, Email – firstname.lastname@example.org , Response will be provided within 15 working days.
If a customer is not satisfied with the resolution provided through various channels or if the complaint/dispute is not redressed within a period of one month, the customer may appeal to Officer- in-Charge of the Regional Office of Department of Non-Banking Supervision of RBI under whose jurisdiction the Registered Office of the Company falls. The details of DNBS is as given below:
The Reserve Bank of India, Officer-in-Charge,
Department of Non-Banking Supervision, Reserve Bank of India,
Fort Glacis, Rajaji Salai Chennai – 600 001 Phone: 04425399222
Email id: email@example.com
The details of various contact points for the grievance redressal mechanism shall be published on the website for the benefit of the customers.
- The Company shall not interfere in the affairs of the borrower except for the purposes provided in The Loan Agreement unless new information not earlier disclosed by the borrower has come to the Notice of the Company
- In the matter of recovery of loans, ORFIL shall follow the usual measures as per the laid down guidelines and existing provisions and would operate within the legal framework and in compliance with the applicable laws and regulations.
- The Company would not resort to undue harassment, viz., persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans etc. In this regard, ORFIL has an established code of conduct for debt collection wherein our staff or any person authorized to represent the Company in collection of dues are extensively trained
- ORFIL’s collection policy is built on courtesy, fair treatment and persuasion. We believe in customer confidence and long-term relationship. Our staff or any person authorized to represent us in collection of dues or/and security repossession will identify himself/herself and interact with our customers in a courteous manner
- We will provide our customers with all the information regarding dues and will give sufficient notice for payment of dues. All customers will be contacted ordinarily at the place of their choice, in the absence of a specified place at the residence of the customer and if the customer is unavailable at the residence, at the customer's place of business/occupation
- We will respect privacy of the customer and all our interactions will be in a civil manner. All assistance will be provided to our customers to resolve differences or disputes in a mutually acceptable manner, if any, regarding the dues
- In case of receipt of a request from the borrower for transfer of the borrowal 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 such request. Such transfer shall be as per transparent contractual terms in consonance with law.
- At our branches, we display the name and contact details (Telephone / Mobile nos. / Email Address) of the Grievance Redressal Officer, Regional Office of the RBI and Grievance Redressal Mechanism followed by us
A periodical review of the Fair Practices Code and the functioning of the grievances redressal mechanism at various levels of management would be undertaken by the Company
The Company shall abide by this Fair Practices Code following the spirit of the Code and in the manner it may be applicable to its business
The Company shall put the above Fair Practices Code outlined hereinabove on its web site, for the information of various stakeholders. The Company would also review and refine the Code, as may be required periodically –based on its own experience and fresh guidelines, if any, to be issued by the Reserve Bank of India in this regard