Fair Practices Code
I.) 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 would 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.
- Loan application forms would indicate the documents required to be submitted with the application form.
- An acknowledgement for receipt of all loan applications would be given to the prospective clients and the said acknowledgement would indicate the time frame within which loan applications will be disposed of which would not be later than 15 working days after receipt of all requisite documents/information.
II.) Loan appraisal and terms / conditions
- The borrower would be conveyed in writing, by means of a sanction/offer letter or otherwise in the vernacular language as understood by the borrower, amount of loan sanctioned alongwith all the terms and conditions thereof including annualized rate of interest thereon and method of application thereof, and the borrower would, in turn, accept in writing the aforesaid terms and conditions, and the said acceptance would be kept on record by the Company.
- The Loan Agreement would contain, in bold, details of penal interest charged for loan repayment.
- All the borrowers would be provided with a copy of loan agreement alongwith all enclosures referred in the loan agreement, in vernacular language as understood by the borrowers at the time of sanction/disbursement of loan.
III.) Disbursement of loans including changes in terms and conditions
- The borrower would be given an advance notice in vernacular language as understood by the borrower as to any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges, etc.
- The said changes in interest rates and charges would be with prospective effect and a clause in this regard would be incorporated in the loan agreement.
- Decision to recall / accelerate payment or performance under the agreement would be in consonance with the loan agreement.
- The Company would 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 be having against the said borrower. In case such right of set off is to be exercised, the Company shall give notice to the borrower 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.
Following are the details of the Grievance Redressal Officer who can be approached by the client/public for resolution of complaints against the Company:
Name: Mr. Amit Kaul, Vice President
IFCI Factors Limited,
10th Floor, IFCI Tower, 61, Nehru Place,
New Delhi – 110019
Tel. No.: 011 4641 2898; Mobile No.: 09810102406
Following are the details of the Officer-in-Charge of the Regional Office of Deptt. of Non-Banking Supervision of Reserve Bank of India, under whose jurisdiction the Registered Office of the Company falls, to which the client may appeal if the complaint/dispute is not redressed within a period of one month:
Department of Non-Banking Supervision
Reserve Bank of India
6, Parliament Street, New Delhi – 110001
- The Company would refrain from interference in the affairs of the borrower except for the purposes provided in the terms and conditions of the loan agreement and unless new information, not earlier disclosed by the borrower, has come to the notice of the Company.
- In case of receipt by the Company of a request from the borrower for transfer of borrowal account, the consent or otherwise i.e. objection of the Company, if any, would be conveyed to the borrower within 21 days from the date of receipt of such request, and such transfer, if consented to, shall be as per transparent contractual terms in consonance with law.
- In the matter of recovery of loans, 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.
- The Company shall ensure that the staffs are adequately trained to deal with the customers in an appropriate manner.
- The grievance redressal mechanism within the organization to resolve disputes arising out of the decisions of the staffs/functionaries shall be as follows:
• On receipt of grievance from the borrower, the same would be processed at the concerned official/functionary level with a report to the Head-Credit.
• The Head-Credit in consultation with the Managing Director would take steps to resolve the grievance.
• The grievance would be generally resolved within 15 working days from the date of receipt thereof.
- The compliance of the Fair Practice Code and the functioning of the grievances redressal mechanism at various levels of management would be periodically (quarterly) reviewed at various levels of management and a consolidated report of such reviews would be submitted to the Board on half yearly basis.