BACKGROUND AND APPLICABILITY OF THE CODE

The Reserve Bank of India, by its Notification No. RBI/2006-07/138 DNBS (PD) CC No. 80 / 03.10.042 / 2005-06 dated September 28, 2006 read with Notification no. RBI/2011-12/470 DNBS.CC.PD.No.266/03.10.01/2011-12 dated March 26, 2012, RBI/2012-13/416 DNBS.CC.PD.No. 320/03.10.01/2012-13 dated February 18, 2013 and Master Circular RBI/2014-15/34 DNBS (PD) CC No.388/03.10.042/2014-15 dated July 1, 2014, has prescribed the broad guidelines on Fair Practice Code.

MyLoanCare Ventures Private Limited (hereinafter referred to as “the Company”) is a Private Limited Company incorporated under the provisions of the Companies Act, 2013. Pursuant to the guidelines issued by the RBI, the Board of Directors of the Company has formulated the Fair Practice Code (hereinafter referred to as “Code” or “FPC”) to be adopted by the Company on being granted the license to commence NBFC activities.

The Company shall conduct a periodic review of the Code to incorporate all best practices prescribed by RBI from time to time and shall make appropriate modifications to the Code to conform to the prescribed best practices. The implementation of the Code will be the responsibility of the entire Company including the Board of Directors and the management team. The Company proposes to cover all aspects of the business under Fair Practices Code starting from origination, processing, servicing, documentation, collection and after sales service. The Company will communicate the FPC to the customers by uploading the FPC on its website.

The Fair Practices Code will also apply to all products and services which the Company will offer (currently planned or which can be planned to be introduced at a later stage which would include the following:

• Loans and other financial products offered by the Company
• Third party products and financial services offered through Company’s sales network

KEY OBJECTIVES

The Company’s Fair Practices Code endeavors to achieve the following basic customer service standards that the Company has set out for itself:

• To ensure fair dealings and complete transparency in all its communications and transactions with customers to help them take an informed and educated decision
• To ensure excellent customer delivery and service standards which includes prompt communication on transactions statuses, hassle free and a quick process
• To provide a quick and effective grievance redressal mechanism to the customer
• To ensure legal compliance in all its dealing with the customers, both in letter as well as spirit

• APPLICATIONS FOR LOANS AND THEIR PROCESSING
  • The Company's official language for all communications to the borrower shall be in the vernacular language or a language as understood by the borrower.
  • Loan application form of the Company shall include necessary information which affects the interest of the borrower, 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.
  • The loan application form shall indicate the documents required to be submitted with the application form.
• LOAN APPRAISAL AND TERMS/CONDITIONS

  The Company shall convey in writing to the borrower in the vernacular language or a language as understood by the borrower by means of sanction letter or otherwise, the amount of loan sanctioned along with the 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. The Company shall mention the penal interest charged for late repayment in bold in the loan agreement.

  The acceptance of the terms and conditions communicated by the borrower shall be preserved by the company in its records

  The Company shall furnish a copy of the loan agreement as understood by the borrower along with a copy each of all enclosures quoted in the loan agreement to all the borrowers at the time of sanction / disbursement of loans.

• DISBURSEMENT OF LOANS INCLUDING CHANGES IN TERMS AND CONDITIONS
  • The Company shall give notice to the borrower in the vernacular language or a language as understood by the borrower of any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges etc. The changes in interest rates and charges shall be effected only prospectively.
  • Decision to recall / accelerate payment or performance under the agreement shall be 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 the Company 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 are entitled to retain the securities till the relevant claim is settled/paid.
• GENERAL
  • 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 new information, not earlier disclosed by the borrower, has been noticed).
  • Any loan request submitted to the Company shall be decisioned within a period of 30 days. The computation of 30 days shall start from the day on which the Customer provides all required documents of the application to the Company. The final decision communication shall be shared with the borrower at the registered communication number or email address.
  • 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, shall be conveyed within 21 days from the date of receipt of 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 the staff is adequately trained to deal with the customers in an appropriate manner.
  • As a measure of customer protection and also in order to bring in uniformity with regard to prepayment of various loans by borrowers of banks and NBFCs, the Company shall not charge foreclosure charges/ pre-payment penalties on all floating rate term loans sanctioned to individual borrowers, with immediate effect.
  • There shall be no discrimination in extending products and facilities including loan facilities to physically/visually challenges applicants on grounds of disability (Refer to RBI Circular No. DNBS.CC.PD.No. 191/03.10.01/2010-11 dated July 27, 2010)
• GRIEVANCE REDRESSAL MECHANISM
  • The Board of Directors of the Company has laid down the appropriate grievance redressal mechanism within the organization to resolve all disputes arising in this regard. This mechanism ensure that all disputes arising out of the decisions of lending institutions' functionaries are heard and disposed of at least at the next higher level. The Board of Directors shall periodically 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 shall be submitted to the Board periodically.
  • The Company will also constitute a customer grievance redressal council comprising of senior management officials to review the process and complaints along with the Compliance Officer. For grievances, customers can write to the Grievance Cell through the mode provided in the Grievance Redressal Policy of the Company.
  • If the complaint/dispute is not addressed within a period of 10 days or the customer is not satisfied, the customer may be guided to be in touch with a designated senior management official for quick and effective redressal.

    Details of Designated Senior Management Official is as below:
    The Officer
    Mr. Ashwani Narnoli
    MyLoanCare Ventures Private Limited
    Plot no. 131, Ground Floor, Sector-44,
    Gurugram - 122003
    Email: gro@myloancare.in
    Contact no.: 8929461030

  • The name and contact details (telephone/email ids/ mobile numbers) of the Compliance Officer will be displayed at its branches, places, website and applications where business is transacted.
  • If the complaint / dispute is not redressed within a period of 20 days from initial days of receipt, the customer may appeal to the Officer-in-Charge of the Regional Office of DNBS as given below:
    General Manager
    Department of Non- Banking Supervision
    Reserve Bank of India
    6, Sansad Marg, New Delhi-110001
    Email: dnbsnewdelhi@rbi.org.in
    Phone No.: 011-23714456
• REGULATION OF EXCESSIVE INTEREST CHARGED BY NBFCS
  • The Company has adopted an interest rate model taking into account relevant factors such as cost of funds, margin and risk premium and determine the rate of interest to be charged for loans 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 shall be disclosed to the borrower or customer in the application form and communicated explicitly in the sanction letter.
  • The rates of interest and the approach for gradation of risks shall also be made available to customers/clients. The information made available to customers or otherwise shall be updated whenever there is a change in the rates of interest.
  • The rate of interest shall be on provided as an annualized rate.
• CLARIFICATION REGARDING REPOSSESSION OF VEHICLES FINANCED BY THE COMPANY

  The Company has adopted re-possession clause in the contract/loan agreement with the borrower which must be legally enforceable. To ensure transparency, the terms and conditions of the contract/loan agreement shall contain provisions regarding:

  • notice period before taking possession;
  • circumstances under which the notice period can be waived;
  • the procedure for taking possession of the security;
  • a provision regarding final chance to be given to the borrower for repayment of loan before the sale / auction of the property;
  • the procedure for giving repossession to the borrower; and
  • the procedure for sale / auction of the property.

A copy of such terms and conditions shall be available to the borrower in terms of circular wherein it was stated that the Company shall furnish a copy of the loan agreement along with a copy each of all enclosures quoted in the loan agreement to all the borrowers at the time of sanction / disbursement of loans, which shall form a key component of such contracts/loan agreements.

The Fair Practice Code has been formulated by the Board of Directors at their meeting held on September 11, 2019 and revalidated on 18th November 2021.