(a)The Company shall conduct a due diligence on the credit worthiness of the borrower, which will be an important parameter for taking a decision on the application. The assessment would be in line with the Company’s credit policies, norms and procedures in respect thereof.
(b) The borrower would be informed of the amount of loan sanctioned or otherwise. The said communication shall contain the terms and conditions including the annualized rate of interest and the method of application thereof.
(c) The Company shall obtain an acceptance from the borrower on the aforementioned communication with the borrowers’ signature under the caption “I / WE ACCEPT ALL THE TERMS AND CONDITIONS WHICH HAVE BEEN READ AND UNDERSTOOD BY ME / US
”. The Company shall maintain a record of such acceptance. Such acceptance and signature may be obtained through digital means.
(d) The Company shall endeavour to furnish a copy of the loan agreement, in the vernacular language as understood by the borrower. Further, the Company shall furnish a copy of the loan agreement, along with a copy of all enclosures quoted in the loan agreement, to all the borrowers at the time of sanction / disbursement of loans. . Such documents may be issued through digital means and or provided for in a manner that the customer is enabled to access the same at any instant. The Company shall ensure that the loan agreement, with all enclosures, furnished to all borrowers contains the terms and conditions and the rate of interest in the form of a Term Sheet, which shall be annexed to the Loan Agreement. Further, the Company shall mention the penal interest charged for late payment in bold in the loan agreement.
(e) The Company shall, wherever applicable, have a built-in repossession clause in the contract / loan agreement so as to have legal enforceability.
(f) The terms and conditions of the loan agreement of the Company shall, wherever applicable, also contain the following provisions:
- Notice period before taking possession;
- Circumstances under which the notice period can be waived;
- Procedure for taking possession of the security;
- Provision regarding final chance to be given to the borrower for repayment of loan before the sale / auction of the property;
- Procedure for giving repossession to the borrower; and
- Procedure for sale / auction of the property.