Fair Practice Code
1. Loan Proposal and their Processing:
A) Primary data is collected from the borrower along with Know Your Customer (KYC) norms as per
theCompany guidelines in the prescribed format.
B) The authorized staff of the Company shall verify the loan application along with all the sureties
and approvals applicable as per the policies of the Company. The staff should also make sure that
thefollowing information are filled completely:
a. Date of application
b. Borrower identification particulars
c. Loan amount and product details
d. Applicable interest rate
e. Term of the loan
f. Repayment particulars
g. Details of indebtedness
h. Income details
i. Purpose of the Loan
j. Nominee details for non-credit products offered along with the loan (or) separately
k. Bank account details (if applicable)
C) All communications by the Company to the borrower shall be in the vernacular language or a
language as understood by the borrower.
D)Loan application forms provided by the Company should 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. Borrower
has to submit the following documents along with the application to obtain the loan from the
E) KYC documents as prescribed by the RBI (for both ID Proof & Address Proof)
• Income Proof
• Passport size photograph of the client and the Spouse / Guardian
F)The Company shall give acknowledgement for receipt of all loan applications. The time frame within
which loan applications will be disposed shall also be indicated in the acknowledgement.
2. Loan Appraisal and Terms & Conditions:
The designated staff of the Company will convey in writing to the borrower in the vernacular language as understood by the borrower by means of sanction letter or otherwise the following:
• The amount of loan sanctioned
• The terms and conditions of the loan
• Annualized rate of interest
• Method of application of the annualized rate of interest
3. Disbursement Procedure of loans:
A)The Company should complete the following documentation at the time of disbursement of the loan
• Demand promissory note
• Surety or Guarantee
• JLG members/ Group acceptance
• The acceptance of the terms and conditions by the borrower, rate of interest, processing charges,
repayment terms and all other terms and conditions if any.
B) The Company shall keep the acceptance of these terms and conditions by the borrower and all the
other concerned documents in its record/safe custody by the authorized persons.
C) The Company shall furnish a copy of the loan agreement containing all the terms and conditions
attached to the loan in the vernacular language as understood by the borrower along with the copies
of all enclosures quoted in the loan agreement to all the borrowers at the time of sanction /
disbursement of loans.
D) Loans will be disbursed in the Company’s branch premises only.
E) Loan passbook will be given to every borrower for each loan. The loan passbook would contain the
repayment schedule, effective interest rate and processing charges and Insurance premium, claim
procedure details etc.
F) The Company will take decision to recall payment under the loan agreement as agreed with the
borrower under intimation.
G) The Company will not charge any penalty on delayed payments and the same has been mentioned
in the Loan agreement in Bold and vernacular language as understood by the borrower.
H) The Company will give notice to the borrower in the vernacular 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 Company will also ensure that changes in
interest rates and charges are affected only prospectively.
4. Release of Security:
A) 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.
B) If the Company has any claim against borrower in respect of the loan outstanding and repayment of
all dues or on realization of the outstanding amount of loan, the Company shall give prior 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.
A) The Company will not interfere 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 come to the notice of the Company.
B) If there is any specific 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. Such transfer shall be as per transparent contractual terms in consonance with
C) The Company will not resort to undue harassment i.e. persistently bothering the borrowers at odd
hours, use of muscle power for recovery of loans etc..
D) The Company will ensure that its staffs are adequately trained to deal with the customers in an
appropriate manner without resorting to rude behaviour.
Current Out Reach
|Key Operational Statistics as on 31st December 2017.|
|Gross Loan Portfolio (Rs. Cr.)||198.83|
|BC Portfolio (From IDBI Bank)(Rs.Cr.)||29.7|
|No. of States||5|
|No. of districts||27|
|No. of Branches||101|
|No. of Active members||2,08,492|
|Loan Amount Disbursed during this period of 2017-18||229.53|
|Average O/S Loan (INR)||13,808|
|Regular Repayment Rate||99.05%|
|Number of Employees||500+|
Rating & Grading
• Jagaran has been assigned Grade S3 (Good) as Social Rating by M2I in 2016 (a renowned Social Rating agency).
• It has received Grading “AA” in Code of Conduct Assessment (CoCA) conducted by ACCESS-ASSIST in 2016.
• CARE Ratings assigned a grading ‘MFI 2’ in July 2017 .
• Staff strength 520+CARE Ratings assigned a Rating‘BBB-/Stable’ to Jagaran on March 2017.
• Jagaran received Skoch Order-of-Merit award in September 2016.
Service Excellence: Provide unfailing service at the right place and at the right time.
Product Offering: Listen to the market and offer practical solutions.
Support and Guidance: Understand problems and assist members whenever required.