Preamble :
The under noted fair practices code for lenders (FPC) is aimed to provide valuable inputs to customers and facilitate effective interaction of customers with the co.
1. Important Declarations :
M.R Finlease ltd. declares and undertakes
To provide professional, efficient, courteous, diligent and speedy services in the matter of retail lending.
Not to discriminate on the basis of religion, caste, sex descent or any of them.
To be fair and honest in advertisement and marketing of loan products.
To provide customers with accurate and timely disclosure of terms, costs, rights and liabilities as regards loan transactions.
If sought, to provide such assistance or advise to customers applying for loans.
To attempt in good faith to resolve any disputes or differences faith customers by setting up complaint redressal cells within the organizations.
To comply with all the regulatory requirements in good faith.
To spread general awareness about potential risks in contracting loan and encourage customers to take independent financial advice and not act only on representation from company
2. Fair Practice
2.1 Product Information:
(a) A prospective customer would be given all the necessary information adequately explaining the range of loan products available with M.R finlease ltd.
(b) On exercise of choice, the customer would be given the relevant information about the loan product of his choice.
(c) The customer would be informed of the processes involved till sanction and disbursement of loan and would be notified of timeframe within which all the processes will be completed ordinarily at M.R Finlease ltd.
(d) The customer would be informed of the names and phone numbers of branches and the persons whom he can contact for the purpose of loan to suit his needs.
(e) The customer would be informed the procedure involved in servicing and closure of the loan taken.
2.2 Interest Rates
2.2.1 Interest Rates for different loan products would be made available through and in any one or all of the following media, namely:
(a) Through prominent display in the offices and at other delivery pints.
(b) Through other media from time to time.
2.2.2 Customers would be entitles to receive periodic updates on the interest rates applicable to their accounts.
Revision in Interest Rates
(a) M.R Finlease Ltd. notify immediately or as soon as possible any revision in the existing interest
Rates and make them available to the customers in the media listed in area 2.2.1
(b) Interest Rate revisions to the existing customers would be notified within 15 days from the date of change.
- Default Interest/Penal Interest :
M.R Finlease ltd would notify clearly about the default interest/penal interest rates to the prospective customers.
M.R Finlease ltd would notify details of all charges payable by the customers in relation to their loan account.
M.R Finlease ltd would make available for the benefit of prospective customers all the details relating to charges generally in respect of retail products in the media as specified in Para 2.2.1
Any revision in charges would be notified in advance and would also be made available in the media as listed in para 2.2.1
M.R Finlease would Cleary specify the nominated account for interest and charges: wherever necessary and get a mandate for debiting the said nominated account along with the documentation.
Terms and conditions for lending:
- M.R Finlease would ordinarily give an acknowledgement of receipt of loan request; a copy of the application form duly acknowledged would also be given, if demanded, as soon as the customer chooses to buy a product or service of his choice.
- Immediately after the decision to sanction the loan, M.R Finlease ltd would show draft of the documents that the customer is required to execute and would explain, if demanded by the customer, the relevant terms and conditions for sanction and disbursement of loan.
- Loan application forms, draft documents or such other papers to be signed by a customer would comprehensively contain all the terms and conditions relation to the product or service of his choice.
- In case of small borrowers seeking loans up to Rs.2 lacks, the company would convey in writing the main reason/which, in the opinion of the co after due consideration, have led to rejection of the loan applications within a stipulated time frame.
- Before disbursement of loan and on immediate execution of the loan documents, M.R Finlease would deliver a copy of the duly executed documents to the customers, when demanded.
Account Practice:
- M.R Finlease ltd would provide regular statements of accounts in respect of cash credit/Overdraft accounts. In case of term loan and other term exposure, the statements of accounts will be provided as per mutual agreement with the borrower.
- M.R Finlease ltd would notify relevant due dates for application of agreed interest, penal interest, default interest, and charges if they are not mentioned in the loan application, documents or correspondence.
- All personal information of the customer would be confidential and would not be disclosed to any third party unless agreed to by the customer, the term “Third party’ excludes all law enforcement agencies, credit information bureau, other banks, financial institutions, other statutory bodies and other agencies appointed by the bank.
- Subject to above Para, customer information would be revealed only under the following circumstances, namely:
Law compels If M.R Finlease ltd.
- If it is in the public interest to reveal the information.
- If the interests of M.R Finlease ltd require disclosure.
- M.R Finlease ltd would reckon cases of customer’s financial distress and consider them sympathetically.
- Customer would be encouraged to inform about their financial distress as soon as possible.
- M.R Finlease ltd would adequately train the operationally staff to give patient hearing to the customers in financial distress and would render such help as may be possible in their view.
Grievance Redressal:
- M.R Finlease ltd would have a grievance Redressal cell within the organization.
- M.R Finlease ltd would make available all the details, viz.
- Where a complaint can be made
- When to expect a reply
- Whom to approach for redressal of grievance to the customers individually on demand and through the media listed in Para 2.2.1
(c) Response to a complaint whether positive or negative or requiring more time for redressal would be given within a maximum period of four weeks form the date of complaint, unless the nature of complaint is such that it requires verification of voluminous facts and figures.
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