1. Preamble
RAGHAVA ASSET FINANCE PRIVATE LIMITED is committed to adopting fair, transparent and ethical practices in all its dealings with customers. This Fair Practices Code (“Code”) has been framed in accordance with the provisions of the Reserve Bank of India Act, 1934, the Master Direction – Reserve Bank of India (Non-Banking Financial Company – Scale Based Regulation) Directions, 2023 and other guidelines issued by the Reserve Bank of India (“RBI”) from time to time.
This Code shall apply to all products and services offered by the Company and shall be implemented in letter and spirit by all employees, officers and authorised representatives of the Company.
2. Objective Of The Code
The objectives of this Code are:
- To promote fair and transparent practices in dealings with customers.
- To facilitate customers in understanding the Company’s products and services and enable them to take informed decisions.
- To ensure fair and courteous treatment to customers.
- To strengthen customer confidence in the Company.
- To establish an effective grievance redressal mechanism.
3. Application For Loans And Their Processing
The Company shall ensure that loan application forms contain all necessary information affecting the interests of the borrower. The application form shall clearly indicate the documents required to be submitted along with the application.
The Company shall acknowledge receipt of all completed loan applications and, wherever feasible, indicate the expected time frame within which the application shall be processed.
All communications with the borrower shall be in English or in a language understood by the borrower.
4. Loan Appraisal, Sanction And Terms & Conditions
The Company shall assess loan applications in accordance with its internal policies and applicable regulatory guidelines.
The Company shall communicate to the borrower in writing the amount of loan sanctioned, annualised rate of interest, repayment schedule, terms and conditions, penal charges and other relevant details.
The Company shall obtain the borrower’s acceptance of the terms and conditions and provide a copy of the executed loan agreement along with all enclosures.
5. Key Fact Statement (KFS)
The Company shall provide a Key Fact Statement (KFS) to eligible borrowers in the format prescribed by RBI.
The KFS shall clearly disclose the Annual Percentage Rate (APR), amount of loan, repayment obligations, fees, charges, penal charges and other material terms of the loan.
No fee or charge which is not disclosed in the KFS shall be recovered from the borrower.
6. Disbursement Of Loans Including Changes In Terms And Conditions
The Company shall give notice to the borrower regarding any change in the terms and conditions of the loan, including changes in interest rates, service charges and repayment schedule.
Any such changes shall be effected only prospectively.
Any decision to recall or accelerate repayment shall be in accordance with the terms of the loan agreement.
7. Release Of Securities
Upon repayment or settlement of all dues, the Company shall release all securities and return all original property documents within thirty (30) days, subject to any legitimate right of lien or set-off.
In case of delay attributable to the Company, compensation shall be paid to the borrower in accordance with RBI guidelines.
In the event of loss or damage to original property documents while in the custody of the Company, the Company shall assist the borrower in obtaining duplicate or certified copies and bear the associated costs in accordance with RBI guidelines.
8. Interest Rate Policy And Penal Charges
The Board of Directors shall adopt an interest rate model taking into account cost of funds, risk premium and other relevant factors.
The rate of interest shall be annualised and communicated to the borrower.
Penal charges for non-compliance with material terms and conditions of the loan shall not be levied in the form of penal interest and shall not be capitalised.
The quantum and reason for penal charges shall be disclosed in the loan agreement, Key Fact Statement and on the Company’s website.
9. General
The Company shall refrain from interference in the affairs of the borrower except as provided in the loan agreement or where fresh information not previously disclosed by the borrower comes to the notice of the Company.
The Company shall not resort to undue harassment, intimidation or coercive methods for recovery of loans.
The Company shall ensure that its employees and recovery personnel deal with customers in a courteous and professional manner.
10. Grievance Redressal Mechanism
The Company shall establish an appropriate grievance redressal mechanism for resolving customer complaints.
The name and contact details of the Grievance Redressal Officer shall be displayed at all offices and on the Company’s website.
Grievance Redressal Officer Name – PERAM SAI KIRAN
Designation – Director
Mobile No. – 95159-64569
Email ID – nodalofficer@raghavaasset.in
The Board of Directors shall periodically review the functioning of the grievance redressal mechanism.
If a complaint is not resolved within thirty (30) days, or if the customer is not satisfied with the response, the customer may approach the Reserve Bank of India under the Integrated Ombudsman Scheme, 2021.
11. RBI Integrated Ombudsman Scheme
The salient features of the Reserve Bank – Integrated Ombudsman Scheme, 2021 shall be displayed at all offices and on the Company’s website.
Customers may lodge complaints with RBI through:
CMS Portal: https://cms.rbi.org.in
Toll Free Number: 14448
12. Review Of The Code
This Fair Practices Code shall be reviewed periodically by the Board of Directors.
Any amendments to this Code shall be approved by the Board and the updated Code shall be hosted on the Company’s website.