Introduction:
The Fair Practices Code as adopted herein below is aimed to provide to the customers/borrowers
effective overview of practices, which will be followed by Fullerton India Credit Company Limited
(in short” the Company”) in respect of the financial facilities and services offered by the Company
to its customers. The code will apply to all loans and advances.
The Company’s business would be conducted in accordance with prevailing statutory and regulatory
requirements, with due focus to increase transparency and promote a fair and cordial relationship
between the customers and company.
In addition, the Company would adhere to the Fair Practice Code, as per the guidelines issued by
Reserve Bank of India, in its functioning. The key elements of which are as follows:
1. Applications for loans and their processing:
(a) The Company shall ensure that customer is given clear information about the loan and
services with the terms and conditions and interest rates / service charges, which applies to
them.
(b) Loan application forms issued by 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 the customer/ borrower can take an
informed decision. The loan application form shall indicate the documents required to be
submitted along with the application form.
(c) The Company shall issue an acknowledgement to the customer for all loan applications. The
company may opt to issue acknowledgement in written form or through electronic mode
including Short Message Services (‘SMS’) or email or through any other appropriate
electronic mode. Subject to receipt of all the requisite documentation and information,
loan applications shall be disposed of within 30 days, from the date of receipt of application
form, complete in all respects. In any case, the Customer will be kept informed by the sales
person with regards to the status of his application from time-to-time. The Customer can
also contact customer service team at the prescribed toll-free number or email ID to obtain
any update on the status of application.
(d) If any additional details/ documents are required, the same shall be intimated to the
borrowers immediately.
2. Loan appraisal and terms/conditions:
(a) Pursuant to due diligence of the Customer, the Company shall convey in writing by means
of an approval letter / sanction letter or otherwise , the amount of loan approved, the
annualized rate of interest and the method of application thereof and other important
terms and conditions.
(b) The Company shall obtain an acceptance from the borrower of the loan terms and maintain
a record of such acceptance.
(c) The Company shall invariably furnish a copy of the loan agreement to all the borrowers at
the time of disbursement of loans or thereafter within 30 days from the date of
disbursement of the loan.
3. Disbursement of loans including changes in terms and conditions:
(a) The Company shall, at the time of disbursal, ensure that the interest rate and processing and
other charges on loan and advances are in strict adherence to approval /sanction letter.
(b) The Company shall give a notice to the borrower of any change in the terms and conditions
including disbursement schedule, interest rates, service charges, pre-payment charges etc.
The Company shall also ensure that changes in interest rates and charges are effected only
prospectively. A suitable provision in this regard shall be incorporated in the loan
agreement.
(c) Any decision to recall/accelerate payment or performance under the loan agreement shall
be in consonance with the Loan Agreement.
(d) The Company shall release all securities on repayment of its 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 the 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 till
the relevant claim is settled/ paid.
4. General
(a) The Company shall refrain from interference in the affairs of the borrower except for the
purposes provided for in the terms and conditions of the Loan Agreement (unless new
information, not earlier disclosed by the borrower has come to the notice of the Company).
(b) In the matter of recovery of loans, the Company shall not resort to undue harassment –such
as persistently bothering the borrowers at odd hours, use of muscle power for recovery of
loans etc.
(c) In case of receipt of a request from the borrower for transfer of the 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 such request. Such transfer shall be as per transparent
contractual terms in consonance with law.
5. Complaint Redressal Mechanism
(a) The Company shall also inform the customers/ borrowers, the phone No. and email address
where customer can record/send the grievances, if any, in relation to financial facilities and
services offered by the Company. The company will inform the customer how to do this
through notices displayed at branch offices, web site or through letter or customer can call
on phone nos. or send an e mail to the company
(b) Upon receipt and after examining the matter, the Company will endeavour to send the
customer its response within four weeks and intimate the customer how to escalate the
complaint to higher level, if he is not satisfied with the response..
(c) In addition, to resolve customer disputes or complaints arising out of or in relation to
financial facilities and services offered by the Company, the Company shall have a Grievance
Redressal Forum comprising 3 members to resolve the disputes. The Grievance Redressal
Forum shall ensure that all disputes / grievances arising out of the financial facilities and
services offered by the Company are suitably heard and disposed of with 30 days of the
complaint. The said Forum shall provide the highlights of the issues and redressal, if any, to
the senior management for their review and compliance of the Fair Practice Code.
(d) A periodical review of the Fair Practices Code and the functioning of the grievances
redressal mechanism at various levels of management would be undertaken by the
Company and a consolidated report of such reviews shall be submitted to the Board of
Directors of the Company at regular intervals.
The Company shall abide by this Fair Practices Code following the spirit of the Code and in
the manner it may be applicable to its business.
The Company shall put the above Fair Practices Code outlined hereinabove on its web site,
for the information of various stakeholders. The Company would also review and refine the
Code, as may be required periodically –based on its own experience and fresh guidelines, if
any, to be issued by the Reserve Bank of India in this regard.
