With reference to the Reserve Bank of India (Non-Banking Financial Companies – Responsible Business Conduct) Directions, 2025, the Company has formulated this Fair Practices Code. It covers disclosure of terms and conditions on receipt and processing of loan applications, sanction, monitoring and recovery of loans, and the grievance redressal mechanism.
It is the policy of the Company to make all its financial products available to eligible applicants without discrimination on the basis of race, caste, colour, religion, sex, marital status, age or physical disability. The Company's business is conducted in accordance with prevailing statutory and regulatory requirements, with due focus on efficiency, customer orientation and corporate governance.
Application for loans and their processing
- The Company obtains a loan request letter and, for corporate customers, a resolution of their Board of Directors. Customers are then given a loan application form, which includes the customer's information, the features of the loan and the documents to be submitted for processing.
- Documentation is available in English and is explained in, and made understood in, the vernacular language of the applicant.
- The Company includes information likely to affect the interests of the prospective borrower, so that a meaningful comparison with the terms offered by other lenders can be made and an informed decision taken.
- The Company informs the applicant of the documents required, including those required under the RBI's KYC guidelines.
- The Company gives the prospective borrower an acknowledgement for receipt of loan request documents.
Loan appraisal and terms / conditions
- The Company conducts due diligence on the creditworthiness of the borrower, in line with its credit policy, norms and procedures.
- The Company conveys its decision in writing, by sanction letter or otherwise. A sanction letter states the amount sanctioned and the terms and conditions, including the annualised rate of interest, its method of application and a tentative EMI schedule.
- The borrower's acceptance of the terms is kept on record in digital or physical form, and a copy is provided to the borrower.
- Penal charges for late repayment, with applicable taxes, are stated in the loan agreement.
- A copy of the loan agreement, with a copy of each enclosure quoted in it, is given to every borrower at the time of disbursement.
Penal charges in loan accounts
- Any penalty for non-compliance with material terms of the loan contract is treated as a "penal charge".
- Penal charges are not capitalised: no further interest is computed on them. Normal compounding of interest in the loan account is not affected.
- The Company does not add any additional component to the rate of interest.
- Penal charges are reasonable, commensurate with the non-compliance, and not discriminatory within a loan or product category.
- Penal charges on loans to individuals for purposes other than business are not higher than those applicable to non-individual borrowers for similar non-compliance.
- The amount of and reason for penal charges are disclosed in the loan agreement and the Key Fact Statement, and displayed on this website under the Interest Rate and Charges Policy.
- Reminders for non-compliance state the applicable penal charges, and every levy of penal charges is communicated with its reason.
Release of property documents on repayment
- The Company releases all original movable / immovable property documents and removes charges registered with any registry within 30 days of full repayment or settlement of the loan account.
- For the event of the death of the sole borrower or joint borrowers, the Company has a procedure for return of original documents to the legal heirs. It is displayed on the Policies page.
Disbursement of loans including changes in terms
- The Company gives notice, in English or in a language understood by the borrower, of any change in terms including disbursement schedule, interest rates, service charges and prepayment charges. Changes take effect prospectively, and the loan agreement says so.
- Any decision to recall or accelerate payment is in line with the loan agreement.
- All securities are released on repayment of all dues or realisation of the outstanding loan, subject to any legitimate right or lien for any other claim against the borrower. If such a right of set-off is exercised, the borrower is given notice with full particulars of the remaining claims and the conditions under which the Company may retain the securities.
General
- The Company does not interfere in the affairs of the borrower except as provided in the loan documents, unless new information not earlier disclosed by the borrower comes to its notice.
- On a request to transfer a loan account to another NBFC, bank or financial institution, the Company conveys its consent or objection within 21 days of receiving the written request. Transfers follow the contractual terms and applicable law.
- For recovery, the Company uses only remedies legally available to it and does not resort to undue harassment, such as persistently bothering borrowers at odd hours or using muscle power.
- The Company has adopted an interest rate policy taking into account cost of funds, margin and risk premium. The annualised rate is disclosed in the loan application form and on this website.
Grievance redressal mechanism
- The Company has a grievance redressal mechanism under which disputes arising from decisions of its functionaries are heard and disposed of at least at the next higher level.
- The Company guides customers who wish to lodge a complaint, and what to do if they are unhappy with the outcome. It responds as soon as possible after examining the matter.
- An officer is designated for redressal of grievances on business practices, lending decisions, credit management and recovery.
- If a complaint is not redressed within one month, the customer may appeal to the Reserve Bank of India through cms.rbi.org.in.
- Contact details of the officers are on the Grievance redressal page.
- Staff are sensitised to be careful and courteous with customers, particularly physically challenged persons and women.
Reserve Bank – Integrated Ombudsman Scheme, 2021
- The Company has appointed a Principal Nodal Officer to represent it and furnish information to the Ombudsman on complaints against the Company.
- The PNO's contact details and the Ombudsman complaint portal (cms.rbi.org.in) are displayed for customers.
- The salient features of the Scheme are displayed in English, Hindi and the regional language at the Company's office, and on this website.
Language and mode of communicating the Code
The Fair Practices Code is made available in a language understood by the borrower and is placed on this website for all stakeholders.
Regulation of excessive interest
- The Board has adopted an interest rate model for determining interest, processing and other charges, considering cost of funds, margin and risk premium. The rate of interest, the approach for gradation of risk and the rationale for charging different rates to different categories of borrowers are disclosed to the borrower.
- Rates of interest are annualised, so the borrower knows the exact rate charged to the account.
Loan facilities to the physically / visually challenged
The Company does not discriminate against physically or visually challenged applicants on grounds of disability in extending products and loan facilities. All possible assistance is given to such persons, and their grievances are redressed under the existing mechanism.
Digital lending and recovery of loans
- The Company adheres to the Fair Practices Code guidelines in letter and spirit.
- Recovery agents adhere to the Company's Fair Practices Code as well as their own code for collection of dues and repossession of security.
Periodic review
A consolidated report of the periodic review of compliance with this Code and of the functioning of the grievance redressal mechanism is submitted to the Board at regular intervals prescribed by it.
Adopted by the Board of Directors at its meeting held on 20 April 2026. A Tamil version is available at our office on request.