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Fair Practices Code (FPC)

Pursuant to Reserve Bank of India (RBI)’s Circular RBI/2011-12/470 / DNBS CC.PD.No.266/03.10.01/2011-12 dated March 26, 2012 issued to Non-Banking Financial Companies (NBFCs), the Board of Directors of the Company have adopted a Fair Practices Code. The code applies to all loan products offered by the Company.
The Fair Practices Code, as adopted herein below, is in conformity with the Guidelines on Fair Practices Code for NBFCs as contained in the aforesaid RBI Circular. All communications to the borrower is generally in English, since we are not dealing in retail/micro-finance loans.

Applications for loans and their processing

Loan application form along-with the documents required pertaining to various loan products will be made available on SIFL’s website for downloading by the applicant. Any changes in the formats of the loan products or introduction of new products will be updated on the website within a week.

All the loan applications received will be acknowledged on the same day. On receipt of the loan applications, the borrower will be indicated the approximate date by which the applicant should call on SIFL for preliminary discussions if deemed necessary. During this meeting, the applicant will be given the details of additional information / particulars that may be required to process the application. Depending on the type and quantum of the assistance sought, the approximate time for processing ( which will be around 4 to 6 weeks on receipt of complete information.) will be indicated to him.

In case the proposal is not acceptable, the borrower would be communicated and if required would be returned all the documents submitted for processing of the proposal.

Loan appraisal and terms/conditions
In accordance with SIFL’s credit policy norms and risk based assessment procedures, each loan application will be appraised after carrying out proper due diligence.

The standard terms and conditions will be discussed with the borrower. These mutually discussed terms and conditions will be put up to the sanctioning authority. Any modifications / additions / deletions indicated by the sanctioning authority will be communicated to the borrower. The Sanction letter will be released to the borrower upon payment of processing fees as applicable.

The acceptance of these terms and conditions by the borrower will be kept on record.(

Disbursement of loans including changes in terms and conditions

On execution of loan documents and compliance of conditions governing such sanction, the disbursement will be made in accordance with the eligibility for drawal and the withdrawal schedule indicated by the borrower.

Any change in the terms and conditions including interest rates, tenor, changes in security etc. will be informed individually to the borrowers.

Changes in interest rates and other charges will be effected prospectively, and informed to borrower suitably. A copy of loan agreement is generally forwarded to the borrower for the purpose of filing of ROC charge.((
The company will strictly adhere and comply with the KYC norms as per RBI regulations. The Company will provide the required application form to the borrower in this regard and advise the borrower regarding the papers to be produced and the formalities to be complied with.

Post Disbursement Monitoring

The borrower will be required to submit a progress report on Monthly / Quarterly basis. Monitoring the performance of the borrower will be based on these progress reports or through visits or through appointment of ‘Nominee Director / Observer’ as per the covenants of the loan agreement.

Decisions to recall / accelerate repayment will be taken as per the covenants of the loan agreement.

All securities will be released on repayment of all the dues or on realisation of the outstanding amount of loan subject to any legitimate right or lien for any other claim against the borrower. If such right of set off is to be exercised, the borrower will be given prior notice about the same with full particulars about the remaining claims and the conditions.

SIFL will ensure that all the information provided by its borrowers is treated as strictly "private and confidential" and will not provide the same to anyone other than the following exceptions
1. Information given to as demanded by law.
2. In the interest of the company in the cases of frauds etc.
3. With consent/instructions of the borrowers.
4. The SIFL will not use the information of borrowers for marketing purpose without the specific authority from its borrower.

Grievance Redressal Mechanism
In case of any Grievance, the Borrower can approach the Managing Director and submit his
Grievance in writing. The Managing Director after examining the matter in consultation with concerned officials, will report try to resolve the genuine Grievance, if any.

General

SIFL would 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 our notice).

In the matter of recovery of loans, SIFL will follow the due process of law.

The Board would review the functioning of Fair Practices Code and Grievance Redressal mechanism on an on going basis.

 
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Terms & Conditions