Fair Practices Code
The Fair Practices Code is aimed to provide to the loan applicants effective overview of practices, which will be followed by the Company in respect of the financial facilities and services offered by the Company. We are committed to ensure that our services to our clients are ethical and dependable. The Fair Practices Code will apply to any loan that Vaibhav Vyapaar Private Limited (“the Company”) may sanction and disburse.
Vaibhav Vyapaar Private Limited has adopted the Fair Practices Code (the “FPC”) pursuant to Reserve Bank of India’s Master Direction- Non-Banking Financial Company- Non-Systematically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016 (updated as on November 22, 2019). The Company would update the FPC to conform to the standards as may be prescribed by RBI from time to time. The Company would abide by this FPC following the spirit of the Code and its applicability to business.
The FPC has been approved by the Board of Directors of the Company and the same will be disclosed on Company’s website.
Objective Of The Code
This code has been developed to:
1. The Company will conduct its business in accordance with prevailing rules and regulations and corporate governance principles.
2. Enhance transparency so as to enable the loan applicants to have a better understanding of what they can reasonably expect of the services.
3. Ensure and sustain a fair and cordial relationship between the loan applicants and the Company.
4. To create and maintain adequate mechanisms for redressal of customer grievances.
Application For Loans And Their Processing
The company shall make all communications to the borrower in English language. The company shall also provide the borrower an option to choose a language as understood by the borrower. The borrower may intimate the company about its preferred language at the time of application of loan.
The company shall provide all necessary information to the borrowers, required in relation to the services offered by the company, so that the borrower can make a meaningful comparison with the terms and conditions offered by other NBFCs and can make an informed decision.
The loan application form shall indicate the documents required to be submitted along with the application form.
The Company shall give an acknowledgement of receipt for all loan applications.
The Company shall endeavor to provide the time frame within which loan applications shall be processed.
Disbursement Of Loans Including Changes In Terms And Conditions
The Company shall give notice to the borrower in English language or a language as chosen by the borrower of any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges etc. The changes shall only be done, if the loan agreement executed between the company and the borrower permits such changes. Further, the said changes shall be effective only prospectively.
The company shall take any decision to recall/ accelerate payment or performance under the agreement only if the same is in consonance with the loan agreement.
The Company shall 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 they may have against borrower. 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 the Company is entitled to retain the securities until the relevant claim is settled/paid.
The company shall refrain from interference in the affairs of the borrower except for the purposes provided in the terms and conditions of the loan agreement (unless information, not earlier disclosed by the borrower, has been noticed).
The company shall in case of receipt of request from the borrower for transfer of the loan account to another NBFC or financial institution, the Company would convey its decision within 21 days from the date of receipt of such request. Such transfer shall be as per transparent contractual terms in consonance with law.
In the matter of recovery of loans, the company shall not resort to undue harassment viz; persistently bothering the borrowers at odd hours, use muscle power for recovery of loans etc. The company shall ensure that its employees/staff are adequately trained to deal with the customers in an appropriate manner.
The company shall as a measure of customer protection, shall not charge any foreclosure charges/pre-payment penalties on any floating rate term loan sanctioned for purposes other than business to individual borrowers, with or without co-obligant(s).
Grievance Redressal Mechanism
In case of any complaint/grievance, the borrowers may contact the following Grievance Redressal Officer of the company
Name: Satya Mallidi,
Designation: Grievance Redressal Officer,
Telephone No: 9880046949,
E-mail id: email@example.com.
The above information shall be prominently displayed at the branches and is also available at the company’s website.
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 Department of Non-Banking Supervision, at 15, Netaji Subhas Road, Kolkata- 700 001.
The Board of Directors shall review the redressal of grievances at regular intervals. A consolidated report of the grievances shall also be made available to the Board of Directors by the management at regular intervals.
The company has laid down appropriate internal guidelines for determining interest rates, processing and other charges, taking into account relevant factors such as cost of funds, margin and risk premium.
The company would intimate the rate of interest to be charge from the borrower at the time of application/sanctioning of the loan.
The rate of interest and the approach for gradation of risks is also available in the company’s website. In case of any change in rates of interest by the company, the same shall be updated on the company’s website.
The rate of interest would be annualized rate so that the borrower is aware of the exact rates that would be charged to the account.
The Company would ensure that it will not unduly charge excessive interest rates to its borrowers. The interest rate for its customers/borrowers would be arrived at taking into account the broad parameters such as risk profile of the customers/borrowers, interest rate trends prevailing in the money market, cost of borrowings, primary and collateral security offered by customers/borrowers, structure of the deal, interest rate charged by competitors and the historical credit track record of the customers/borrowers.
Complaint With The FPC
An annual review of the compliance with the Fair Practice Code would be conducted. A consolidated report of such review would be submitted to the Board of Directors every year.