Introduction

Introduction

This Fair Practices Code (this “Code”) aims to provide to the customers an effective overview of practices, which will be followed by the Avanti Finance Private Limited (the “Company”) in respect of the financial facilities and services offered by the Company to its customers. The Code will facilitate the customers to take informed decisions in respect of the financial facilities and services to be availed by them and will apply to any loan that the Company may sanction and disburse. The Company commits itself to implementing and adopting these fair practices in all its activities and transactions while functioning as an NBFC-MFI.
Objective of the Code

Objective of the Code

This Code has been developed to: (a) Promote good, fair and trustworthy practices by setting minimum standards in dealing with the customers; (b) Increase transparency to enable the customers to have a better understanding of what they can reasonably expect of the services; (c) Encourage market forces, through competition, to achieve higher operating standards; and (d) Promote a fair and cordial relationship between the customers and the Company.
Non-Discrimination Policy

Non-Discrimination Policy

We will not discriminate between our customers on the basis of gender, race or religion.
Our Key Commitments and Declarations

Our Key Commitments and Declarations

We shall act efficiently, fairly and diligently in our dealings with all our customers by:
  1. Meeting the commitments and standards in this Code for the financial products and services we offer, and the procedures and practices our staff follow;
  2. Ensuring that all the financial services meet relevant laws and regulations;
  3. Providing professional, courteous and speedy services; and
  4. Providing accurate and timely disclosure of terms and conditions, costs, rights and liabilities as regards financial transactions.
We shall help the customer understand how our financial products and services work by:
  1. Giving verbal information about the financial schemes in Hindi and / or English and / or local vernacular language as understood by the borrower;
  2. Ensuring that our advertising & promotional literature is clear and is not misleading;
  3. Explaining financial implications of the transactions;
  4. Helping the customer choose the financial scheme.
We shall deal quickly and proactively with things that go wrong by:
  1. Correcting mistakes quickly;
  2. Attending customer complaints quickly;
  3. Telling our customers how to take their complaint forward if the customers are still not satisfied with our assistance; and
  4. Reversing any charges that we apply due to our mistake.
Loan appraisal and terms / conditions

Loan appraisal and terms / conditions

    (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:
  1. Notice period before taking possession;
  2. Circumstances under which the notice period can be waived;
  3. Procedure for taking possession of the security;
  4. Provision regarding final chance to be given to the borrower for repayment of loan before the sale / auction of the property;
  5. Procedure for giving repossession to the borrower; and
  6. Procedure for sale / auction of the property.
Disbursement of loans including changes in terms and conditions

Disbursement of loans including changes in terms and conditions

(a) The Company shall frame appropriate internal principles and procedures for determining and ensuring that the interest rates and processing and other charges are not excessive. The Company shall, at the time of disbursal, ensure that the interest rate and processing and other charges on loan and advances are in strict adherence to above referred internal principles and procedures. (b) The disbursement will be done immediately upon compliance of all the terms and conditions of the sanction by the borrower. (c) The Company shall endeavor to give a notice to the borrower in the vernacular language or a language as understood by the borrower, of any change in the terms and conditions including disbursement schedule, interest rates, service charges, pre-payment charges etc. The Company shall also ensure that changes in interest rates and charges are effected only prospectively. A suitable condition to this effect shall be incorporated in the loan agreement.
Post Disbursal Supervision

Post Disbursal Supervision

(a) Any decision to recall / accelerate payment or performance under the loan agreement shall be in consonance with the loan agreement. (b) The Company shall release all securities offered by the borrower 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 the borrower. If such right of set off is to be exercised, the borrower shall be given 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.
General

General

(a) The Company shall not interfere in the affairs of the borrower except for the purposes provided in the terms and conditions of the loan agreement, unless information not earlier disclosed by the borrower has come to the notice of the Company. (b) In the matter of recovery of loans, the Company shall not resort to undue harassment like bothering the borrowers at odd hours, use of muscle power for recovery of loans etc. The Company shall ensure that its staff is adequately trained to deal with the customers in an appropriate manner. The Company shall ensure that its staff are adequately trained so as not to behave rudely with customers. (c) The Company will call delinquent customers between 0700 hours to 2100 hours unless special circumstances of the borrower’s business require to call them otherwise outside the hours mentioned. (d) The Company may arrange for enforcing security charged to it of the delinquent borrower, if required, with an aim only to recover dues and will not be aimed at whimsical deprivation of the property. (e) The Company shall ensure that the entire process of enforcing its security, valuation and realization thereof be fair and transparent. (f) In case of receipt of a request from the borrower for transfer of the borrower account, the consent or otherwise i.e. objection of the Company, if any, shall be conveyed within 21 days from the date of receipt of such request. Such transfer shall be as per transparent contractual terms in consonance with law. (g) The Company shall not charge foreclosure charges / pre-payment penalties on all floating rate term loans sanctioned to individual borrowers.
Language and mode of communicating this Code

Language and mode of communicating this Code

(a) The Company shall endeavour to have this Code translated into any vernacular language or other language as understood by the borrowers. (b) The Company shall ensure that this Code is published on its website so that the information contained in this Code is accessible to all stakeholders.
Complaint Redressal Mechanism

Complaint Redressal Mechanism

It is the Company’s constant endeavour to put customers interest first and to provide with financial solutions that are right for the customers. In keeping with its promise, the Company looks forward to receiving both positive and negative feedback from the customers on its products and services. The grievances of the customers will be redressed in the following manner: (a) The customer can register grievances through email id and toll free number provided at the Company’s branches / Head Office / website and at any other place where the business of the Company is transacted. (b) After examining the matter, the Company will endeavour to send the customer its response expeditiously and intimate the customer how to escalate the complaint to higher level, if he is not satisfied with the response. (c) The customer has to confirm whether the grievance has been resolved to his / her satisfaction or not. The grievance will be deemed to be closed, if the customer does not respond via toll free number or email. (d) At all branches / Head Office / any other place where the business of the Company is transacted, notice will be put up informing the customers about the Customer Care Executives, Escalation Mechanism and the Grievance Redressal Officer (including the name and contact details responsible for logging and resolving the grievances) who can be approached by the public for resolution of complaints against the Company. (e) If the grievance is not redressed within one month from the date of receipt of the grievances, the customer may appeal to: The Officer In Charge, Department of Non-Banking Supervision (State of Maharashtra and State of Goa), Reserve Bank of India, Garment House, Dr. Annie Besant Road, Worli, Mumbai – 400 018 Tel: 022-24931214 / 022-24939321. Email id: helpdnbs@rbi.org.in. The complete contact details of such Officer of the Reserve Bank of India shall be provided at all branches / Head Office / any other place where the business of the Company is transacted. (f) The Company shall also request the customer to provide feedback on the services rendered. This can be done through direct contact by staff or through specific customer satisfaction surveys that may be conducted from time to time. (g) A periodical review of the Fair Practices Code and the functioning of the Grievances Redressal Mechanism at various levels of management would be undertaken by the Company and a consolidated report of such reviews shall be submitted to the Board of Directors of the Company, at regular intervals in a manner as prescribed by the Board from time to time.
Policy for determining Interest Rates, Processing and Other Charges

Policy for determining Interest Rates, Processing and Other Charges

(a) To ensure that there the customers are not charged excessive interest rate and charges on loans and advances by the Company, the Board of Directors of the Company shall adopt a policy for determining interest rates, processing and other charges (“Interest Rate Policy”) and the same shall be published on the Company’s website. The changes in the interest rates are also displayed on the Company’s website on a regular basis. Further the Board of Directors of the Company shall also undertake a periodical review of the Interest Rate Policy. (b) The Board of Directors of the Company shall adopt an interest rate model taking into account relevant factors such as cost of funds, margin and risk premium and determine the rate of interest to be charged for loans and advances. The rate of interest and the approach for gradations of risk and rationale for charging different rate of interest to different categories of borrowers shall be disclosed to the borrower or customer in the application form and communicated explicitly in the sanction letter. Such aspects shall also be detailed in the Interest Rate Policy. (c) The rates of interest and the approach for gradation of risks shall also be made available on the Company’s website or published in the relevant newspapers. The information published in the website or otherwise published shall be updated whenever there is a change in the rates of interest. (d) The rate of interest shall be an annualised rate so that the borrower is aware of the exact rates that would be charged to his account. The Company shall abide by this Code following the spirit of this Code and in the manner it may be applicable to its business.
Grievance Redressal Policy

Grievance Redressal Policy

In case of grievance, contact Grievance Redressal Officer – Manish Thakkar: manish.thakkar@avantifinance.in Elphinstone Building 10, Veer Nariman Road Mumbai - 400 001 India If grievance has not been satisfactorily resolved within a month, appeal to the Officer-in-Charge of the Regional Office of Department of Non-Banking Supervision (DNBS), Reserve Bank of India.
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