Fair Practice Code
Our commitment to transparency, ethical conduct, and fair treatment in all our dealings with customers.
Background
RBI has issued the guidelines on Fair Practices Code for Non-Banking Finance Companies which sets the fair practices standards when dealing with individual customers and to serve as a part of best corporate practice.
In view of this, CashPlus has adopted the code to provide transparency in business dealings with its borrowers.
Application of Code
This Fair Practices Code applies to all categories of products and services offered by CashPlus whether the products and services are provided across the counter, over the phone, through interactive electronic device, on the internet or by any other method.
Key Commitments
Applications for Loans and their Processing
Loan application forms will 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 will indicate the documents required to be submitted with the application form. The loan application form and the sanction letter / MID (Most Important Document) issued to the customer shall disclose the approach for gradation of risks and rationale for charging different rates of interest to different categories of borrowers.
The company will devise a system of giving acknowledgement for receipt of all loan applications. Preferably, the time frame within which loan applications will be disposed of will also be indicated in the acknowledgement.
If CashPlus cannot provide the loan to the borrower, the same shall be communicated to the borrower with the reason(s) for rejection.
Loan Application form will clearly state the information that the company requires to collect from the customer to fulfil the KYC norms and to comply with legal and regulatory requirements.
CashPlus will make available its loan products to all qualified borrowers and shall not discriminate on grounds of sex, caste and religion in the matter of lending.
When a person is considered to be a guarantor to a loan, company shall inform him/her the Letter/Deed of Guarantee stating the terms of liability as guarantor, any default in servicing of the loan by the borrower to whom he/she stands as a guarantor.
Loan Appraisal and Terms/Conditions
The company will convey in writing to the borrower by means of sanction letter or otherwise, the amounts of loan sanctioned along with the terms and conditions including annualised rate of interest and method of application thereof and keep the acceptance of these terms and conditions by the borrower on its record.
The loan sanction letter and all communications to the borrower shall be in the vernacular language or a language understood by the borrower.
Disbursement of Loans including Changes in Terms and Conditions
CashPlus will give notice to the borrower of any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges etc. We will also ensure that changes in interest rates and charges are affected only prospectively.
The penal interest to be charged by the company for late repayment of loan shall be mentioned in bold letters in the loan agreement.
Decision to recall/accelerate payment or performance under the agreement or seek additional securities/collaterals will be in consonance with the loan agreement.
The loan agreement shall contain a built-in re-possession clause and 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, and procedure for sale/auction of the property.
CashPlus will release all securities on repayment of all dues or on realisation of the outstanding amount of loan subject to any legitimate right or lien for any other claim company may have against the borrower.
General
The company will refrain from interference in the affairs of the borrower except for the purposes provided in the terms and conditions of the loan agreement.
In case of receipt of request from the borrower for transfer of borrower account, the consent or otherwise i.e., objection of the company, if any, will be conveyed within 21 days from the date of receipt of request.
In the matter of recovery of loans, the company will not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans, etc.
CashPlus shall not charge foreclosure charges/prepayment penalties on all floating rate term loans sanctioned to individual borrowers.
CashPlus shall inform the borrower in the event of closure/shifting of its branch office.
Complaints
In case of any complaint/grievance, the applicant/borrowers will have to inform in writing the concerned branch. The Branch Officials shall immediately take up the matter for redressal as per the policy. In case the complaint remains unresolved, the borrower shall write to Zonal Office Level.
All disputes in relation to the products and services shall be heard and disposed of within 30 days from the date of receipt of the complete details in respect of the grievance.
Grievance Redressal/Nodal Officer
In case the response from Branch Official or Zonal Office Level is unsatisfactory or no response is received, the complaint should be escalated to:
Neha Yadav
Grievance Redressal Officer
Further Escalation
In case the borrower is not satisfied with the decision of the Grievance Redressal Officer of CashPlus or his complaint/dispute is not resolved within 30 days, he may approach the Officer in Charge of the Regional Office of Department of Non-Banking Supervision of RBI.
Additional Information
A consolidated report of periodical review of compliance of fair practice code and functioning of the grievance redressal mechanism at various levels of management may be submitted to the Board/Committee of Directors at regular intervals.
CashPlus shall furnish a copy of the loan agreement to the borrower at the time of disbursement of loan.