Fair Practices Code (English)
This has reference to RBI Circular No. 2012-13/416/DNBS. CC. PD No. 320 /03.10.01/2012-13 dated 18th February, 2013, wherein the Reserve Bank of India (RBI) has revised the guidelines on Fair Practices Code for NBFCs to implement the same.
The Fair Practices Code, as mentioned herein below, is in conformity with these Guidelines on Fair Practices Code for NBFCs as contained in the aforesaid RBI Circular. This sets minimum Fair Practice standards for the Company to follow when dealing with customers. It provides information to customers and explains how the Company is expected to deal with them on a day to day basis.
This policy applies to all customers including those with any complaints / enquiries as posted on social / any other media and we encourage all customers to reach out to the below platforms as required.
Objective of the Code
The code has been developed with an objective of:
- Ensuring fair practices while dealing with customers
- Greater transparency enabling customers in having a better understanding of the product and taking informed decisions
- Building customer confidence in the company
Applications for Loans and their processing
- The Company offers various financial products including Loan against securities, IPO financing, Bills/ Invoice discounting, Project loan, Working capital loan, Term loan, Loan against property, Lease rental discounting, Loan for purchase of commercial property purchase among others. The below clause however will only apply with respect to retail loan viz. home loan, personal loan etc., wherein the borrower is an individual and who would requires assistance as compared to mid-large corporate clients who are well versed and equipped with financial market business.
- The 'Application Form / appropriate documents' of ABFL for each of these products offered by the Company is different depending upon the requirement of each product and will include all information that is required to be submitted by the Borrower. Necessary information will be provided by ABFL to facilitate the Borrower in making a meaningful comparison with similar terms and conditions offered by other Non Banking Finance Companies (NBFCs) and taking an informed decision based on the aforesaid comparison.
- The 'Application Form/ appropriate documents' of ABFL may also indicate the list of documents required to be submitted by the Borrowers along with the Application form.
- ABFL has a mechanism of giving an acknowledgement for receipt of Application form to its Borrower for availing loans. ABFL would inform the Borrower about its decision within reasonable period of time from the date of receipt of all the required information in full.
Loan appraisal and terms/ conditions
ABFL shall convey in writing to the Borrower by way of a sanction letter or otherwise, the amount of limit sanctioned along with all the terms and conditions including annualized rate of discount/ interest and method of application thereof and keep the acceptance of these terms and conditions by the borrower on ABFL's record. Any clause relating to penal interest charged for late repayment will be specified in bold in the Loan Agreement. ABFL at the time of sanction / disbursements of loans will furnish a copy of loan agreement to the borrower.
Disbursement of loans including changes in terms and conditions
- Through its published website or as appropriate if specific to a customer, ABFL will give Notice to its Borrower(s), of any change in the terms and conditions of the sanction. ABFL will also ensure that changes in discount/ interest rates and charges are effected only prospectively.
- Decision to recall/ accelerate payment or performance under the Agreement will be in consonance with the respective loan Agreement.
- ABFL will release all securities of its Borrower only on repayment of all dues by such Borrower, or only on realization of the outstanding amount of the Borrower's availed limit, subject to any legitimate right or lien for any other claim which ABFL may have against its Borrower. If such right of set off is to be exercised, the Borrower will be given notice about the same with full particulars about the remaining claims and conditions under which ABFL will be entitled to retain the securities till the relevant claim is settled or paid by the Borrower. Due No-objection certificate will be issued to the customer on fulfilment of said terms within 15 workings days of completion of formalities.