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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

wherever applicable:
•   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.

5. General:

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 30th Nov 2018.
 Gross Loan Portfolio (Rs. Cr.) 318.06
BC Portfolio (From IDBI Bank)(Rs.Cr.) 16.29
No. of States 5
No. of districts 27
No. of Branches 108
No. of Active members 2,78,358
Loan Amount Disbursed during this period of 2018-19 351.07
Average O/S Loan (INR) 16,013
Regular Repayment Rate 99.69%
Number of Employees 645+

Ratings and Grading


Rating / Grading Month

Rating / Grading / COCA

Rating / Grading / Score


May, 2018




May, 2018




August, 2018




August, 2018



Our Philosophy

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.

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