Fair Practice Code

Fair Practice Code :

RBI has issued directives for Non-Banking Financial Companies (NBFCs) vide circular - DNBS (PD) CC No. 80 / 03.10.042 / 2005-06, dated September 28, 2006, detailing standards for fair business and corporate practices while dealing with their customers (as modified, amended and updated from time to time, the "FPC"). Revised Guidelines issued by RBI vide circular DNBS.CC.PD.No. 266 / 03.10.01 / 2011-12 dated 26th March 2012 & DNBS.CC.PD.No. 320/03.10.01/2012-13 dated February 18, 2013 have been incorporated.

A. Applications for loans and their processing :

  • Every borrower has to fill up the loan application of the company which contains all the information of which affect the interest of the borrower, so that borrower can do a meaningful comparison with the terms and conditions offered by other NBFCs and a decision may be taken by him.

  • The borrower has to submit all the KYC documents such as address proof, id proof, income proof etc as required in the application form. For the recovery of the loan, the company will not resort undue harassment of the borrower such as using muscle power for recovery of loan or disturbing the borrower at odd hours.

  • The Company shall give acknowledgement for receipt of all loan applications.The applications shall contain the number of days within which the application will be sanctioned.

B. Loan appraisal and terms/conditions :

  • The company should give in writing or otherwise inform the borrower the amount of loan sanctioned, the annualised rate of interest including penal interest and method of application thereof and keep the acceptance of these terms and conditions by the borrower on its record.

C. Disbursement of loans including changes in terms and conditions :

  • The company should give a notice to the borrower if any terms & conditions are changed and the same will be effected prospectively.

  • The company should release all the securities and issue "No due Certificate" on repayment of all dues subject to any legitimate right or lien.

  • The borrower should be made aware by any such legitimate right or lien in advance.

D. General Provisions :

  • The company will not interfere in the affairs of the borrower unless some new informations which was not made available to the company at the time of lending has come to the notice of the company.

  • In case of request form the borrower for transfer of his account, the same should be done immediately on such request and such transfer shall be as per the terms and conditions of the loan agreement .

  • For the recovery of the loan, the company will not resort undue harassment of the borrower such as using muscle power for recovery of loan or disturbing the borrower at odd hours.

  • The Company shall ensure there is no rude behavior from its staff towards customers for which staff will be adequately trained to deal with the customers in an appropriate manner.

E. Grievance Redressal :

  • Any grievance of the borrower must be resolved amicable at the branch level and the same should be reported to the Resident Director at Jaipur.

  • If the grievance is not resolved, say within 3 working days, the same must be resolved by the Director maximum within next 7 working days.

  • The above Fair Practices Code will be reviewed by the board from time to time and all branch heads are required to inform the designated director about their views while implementing the same, so that more pragmatic Fair practice Code and the functioning of the grievance redressal mechanism at the various levels of management is addressed.

  • Each Branch Head shall act as a Grievance Redressal Officer who can be approached by the public for resolution of complaints against the Company

  • All branches / places where business of the Company is transacted, a notice will display the following information prominently, for the benefit of their customers:

Name of Grievance Redressal Officer

Dar Credit & Capital Ltd

Principal Place of Business

If the complaint / dispute is not redressed within a period of one month, the customer may appeal to the Officer-in-Charge of the Kolkata Office of DNBS, Reserve Bank of India,15, Nethaji Subhas Road, Kolkata-700 001.

F. The Fair Practices Code :

The Fair Practices Code based on the guidelines outlined on RBI Website shall be incorporated with the approval of our Boards within one month from the date of issue of the circular.The Fair Practices code shall also be displayed at all the branches at appropriate place or on notice board, so that the borrower can read the same. The same shall be put up on our web-site(www.darcredit.com), for the information of various stakeholders.

G. Interest Rate Policy :

  • This rate of interest is arrived at through Dar Credit & Capital Ltd’s interest rate model which takes into account relevant factors such as cost of funds, margin and risk premium.

  • We take a comprehensive approach to the gradation of risk that does not discriminate between classes of borrowers, but rather tailors the interest rate to each loan.

  • The decision to give a loan and the rate of interest thereon are carefully assessed on a case by case basis based on multiple factors which may include the borrower's cash flows (past, current and projected), borrower's other financial commitments, the borrower's credit record, the security for the loan as represented by underlying assets or other financial guarantees etc.

  • Such information is gathered based on information provided by the borrower, credit reports, market intelligence and information gathered by field inspection of the borrower's premises. The approved Interest Rate Policy is published on the website.