This Fair Practice Code has been approved by the Board of Directors of the Company at its meeting held on 13 August, 2014 and supercedes the earlier Fair Practice Code approved by the Board of Directors of the Company by circulation on 11th March, 2013
Short title, Extent and Commencement
This Code may be called the UY Fincorp Limited-Fair Practices Code (“fair Practice Code”) .
It shall extend to all sections of the Company dealing directly or indirectly with customers in relation to any and all kinds of activities involving credit and finance, in any makeover.
This Fair Practice Code comes into effect from 13 August, 2014 and will be applicable to the existing customer as on date and to all new customers on and from 13 August, 2014.
Objectives of Fair Practices Code
- To ensure transparency in the Company’s dealings with its Customers
- To ensure compliance with legal norms in matters relating to recovery of advances
- To strengthen mechanisms for redressal of customer grievances.
For the purpose of the Code, the words Application Form shall mean an application in the prescribed format of the Company to be duly filled-in and submitted to the Company by a prospective Customer furnishing all information and particulars required therein in their true and original forms seeking grant of a Facility from the Company on certain specified terms and conditions as may be stipulated by the Company at its sole discretion.
Company shall mean any and all offices of UY Fincorp Limited, Facilities shall mean and cover any and all types of financing arrangements of different nature and modes like Loan, Lease Finance, Mortgage, Inter Corporate Deposits, Loan against Investment in Securities and Shares, Infrastructure Funding, Industrial Assets Funding, Real Estate Funding, Loan Against Shares, Bridge Finance, Equity Participation, Bill Discounting etc. under different financing schemes and policies of the Company as prevailing from time to time and Other words and expressions used and not defined in the Fair Practice Code herein shall have, unless the context otherwise requires, the meaning respectively assigned to them in the relevant Document/Agreement signed / to be signed and executed by the Customer for availment of a Facility sanctioned to him by the Company.
UY Fincorp Limited – Fair Practices Code
I. Application for Facilities and their processing:
The Application Forms would, inter-alia, contain necessary information, which in the judgment of the Company are likely to affect interest of the prospective Customers 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. Documents required to be submitted with the application form shall be mentioned in the form. All communications to the borrower shall be in English or the language as understood by the borrower.
The Company would acknowledge for the receipt of all duly submitted Application Forms. Such acknowledgements should also indicate the tentative time frame for disposal of the application by the Company.
II. Appraisal and Terms and Conditions:
The Company will convey in writing to the borrower in English or the language as understood by the borrower by means of sanction letter or otherwise, the amount of facility sanctioned along with terms and conditions including annualized rate of interest and method of application thereof and keep the acceptance of these terms and conditions by the borrower on its record.
A copy of the Agreement/term sheet, along with a copy each of all the enclosures quoted in the said Document/Agreement may be furnished to the Customer at the time of sanction / disbursement of facilities. The Agreement/term sheet shall mention the penal interest charged for late repayment in bold.
III. Release of Facilities and Changes in Terms and Conditions:
The Company would ensure timely release of Facilities sanctioned in conformity with the terms and conditions governing such sanction. It would give notice of any change in the terms and conditions including disbursement schedule, finance charges, service charges, prepayment charges etc in English or the language as understood by the borrower. The change in interest rate and charges are effected prospectively. The Company would carry out post-disbursement supervision in accordance with normal business practices, the terms of sanction and the guidelines issued by the Reserve Bank of India from time to time.
IV. Recall of Facilities:
Any decision pertaining to Recall of Facilities or Acceleration of payment or seeking of any additional securities would be taken strictly in accordance with the relevant provisions in the concerned Agreement/document and amendments made thereto.
V. Release of Securities:
The Company would release all securities on repayment of all dues or on realisation of the outstanding amount arising out of the facilities granted, subject to any legitimate right or lien for any other claim the Company may have against borrower. If such right of setoff 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 the Company is entitled to retain the securities till the relevant claim is settled/paid.
VI. General Ethics:
The Company would refrain from interference in the day-to-day affairs of the borrowers. It shall not however restrict the Company from pursuing the terms and conditions of the documents executed with the borrower and taking any action on the basis of any new information, not earlier disclosed by the borrower if and when it comes to the notice of the Company or on the basis of any other event if it so warrants, any proactive action to protect the Company’s lawful interests.
In the matter of recovery of dues, the Company would adopt legally valid processes in accordance with the rights provided under the Agreement and not resort to rude behavior, undue harassment or use of force. The Company shall adequately train its employees from time to time in this regard.
In case of receipt of request from the borrower for transfer of Borrowal account, the consent or otherwise i.e., objection of the Company, if any, would 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.
The Compnay shall not charge foreclosure charges/ pre-payment penalties on floating rate term loans sanctioned to individual borrowers.
VII. Responsibilty of Board of Directors and Customer Grievances Redressal Mechanism:
The Company has laid down the appropriate grievance redressal mechanism within the organization to resolve disputes arising in this regard. Such a mechanism ensures that all disputes arising out of the decisions of the functionaries are heard and disposed of at least at the next higher level.
The Company shall at all time endeavor to improve the quality of service and redress complaints and grievances, if any, of the Customers.
Customer complaints would be submitted to the Mr. Dinesh Burman, Executive Director appointed as Nodal Officer/ Grievance Redressal Officer who would resolve the same speedily and their name and contact details (Telephone/Mobile nos. and email address) will appear at the places where the business of the company is transacted.
Response to a complaint would be given within a maximum period of two weeks from the date of complaint, unless the nature of complaint requires verification of voluminous facts and figures.
If the complaint / dispute is not redressed within a period of one month, the customer may appeal to the Officer-in-Charge of the Regional Office of DNBS of RBI (Reserve Bank of India, Department of Non Banking Supervision, 5th Floor, 15, Netaji Subhash Road, Kolkata- 700001), under whose jurisdiction the registered office of the Company falls.
The customer grievances redressal mechanism shall be reviewed periodically by the Managing Director of the Company at specified intervals.
The Board of Directors shall periodical review 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 may be submitted to the Board of Directors annually.
VIII. Regulation of interest to be charged from the borrower:
The Company has laid out appropriate internal principles and procedures in determining interest rates and processing and other charges.
The Company has adopted an interest rate model taking into account relevant factors such as, cost of funds, margin and risk premium, etc and determined the rate of interest to be charged for facilities and advances. The rate of interest and the approach for gradations of risk and rationale for charging different rate of interest to different categories of borrowers is followed in the Company and communicated to the borrower. Such information is also published in the website of the Company.
The rate of interest to be charged to the account will also be in annualized form.
IX. Repossession for Vehicle Financed
The Company has included a built in repossession clause in the loan agreement with the borrower which is legally enforceable. To ensure transparency, the terms and conditions of the loan agreement also contains provisions regarding: (a) notice period before taking possession; (b) circumstances under which the notice period can be waived; (c) the procedure for taking possession of the security; (d) a provision regarding final chance to be given to the borrower for repayment of loan before the sale / auction of the property; (e) the procedure for giving repossession to the borrower and (f) the procedure for sale / auction of the property. A copy of such terms and conditions is made available to the borrowers.
X. Micro Finance Institution (MFI)
The Company is not an NBFC- MFI.
XI. Lending Against Collateral of Gold Jewellery
The Company at present does not lend against Collateral of Gold Jewellery. However, the Company shall comply with Fair Practice Code in this regard as and when it starts lending against collateral of Gold Jewellery.
XII. Posting on Website
A copy of Fair Practice code is placed on website of Company for information of various stakeholders.
The Board of Directors of the Company shall review the Code and its implementation from time to time.