Pursuant to Reserve Bank of India guideline on Fair Practices Code (FPC) to be followed by NBFCs, vide its letter No. RBI/2011-12/470; DNBS.CC.PD.No.266 /03.10.01/2011-12 March 26, 2012, ORFIL has formulated this FPC and laid down following processes /practices for business transactions.
This Fair practice code is been formulated to provide overview of practices followed by the company, this has been formed based on the account of latest guidelines on “Fair Practices code for NBFC” issued by RBI on February 18-2013.
- To promote good and fair practices by setting minimum standards in dealing with customers.
- To increase transparency so that the customer can have a better understanding of the services expected
- Recognize our responsibility to provide financial services to clients based upon their needs and repayment capacity
- To ensure compliance with legal norms in matters relating to recovery of advances
- Ensure the loans are given basis customer needs and to provide customers with loan amount which will meet their needs.
- Maintain decency and decorum during the visit to the clients’ place for collection of over dues.
Applications for Loans and their Processing
- Loan application forms issued by the Company shall include necessary information, which affects the interest of the borrower so that he/she can do a meaningful comparison with the terms and conditions offered by other NBFCs and an informed decision can be taken by the borrower.
- The Company shall devise a system of giving acknowledgement for receipt of all loan applications. The time frame within which loan applications shall be disposed of shall also be indicated in the acknowledgement.
- The loan application form shall indicate the documents required to be submitted along with the application form.
- If any additional details/ documents are required, the same shall be intimated to the borrowers immediately.
Loan Appraisal and Terms & Conditions
- The Company shall conduct a due diligence on the credit worthiness of the borrower, which will be an important parameter for taking decision on processing of the application. The assessment would be in line with the Company’s internal policies, norms and procedures in respect thereof.
- The Company upon approval of the loan shall convey the applicant through an agreement cum sanction letter or otherwise indicating the amount of loan, annualized rate of interest applicable, along with the terms and conditions
- The Company shall obtain an acceptance from the borrower of the loan terms and maintain a record of such acceptance.
- The Company shall furnish a copy of the loan agreement as understood by the borrowers along with a copy of all the enclosures quoted in the loan agreement to the borrowers.
Disbursement of loans including changes in terms and conditions
- The Company shall give notice to all its borrowers of any change in the terms and conditions – including disbursement schedule, interest rates, service charges, prepayment charges etc. The Company shall also ensure that changes in interest rates and charges are effected only prospectively. Any changes to the above charges shall be made available at our branches and also the website of the company (www.orangeretailfinance.com). The website address is also available on the application form.
- The Company has mentioned the penal interest charged for the late payment in bold in the agreement. A suitable provision in this regard shall be incorporated in the loan agreement.
- Any decision to recall/accelerate payment or performance under the loan agreement shall be inconsonance with the Loan Agreement.
- All securities pertaining to the loan would be released on receipt of full and final payment of the loans, subject to any legitimate right or lien, and set-off for any other claim that ORFIL may have against the borrowers. 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 ORFIL is entitled to retain the securities until the relevant claim is settled / paid.
Grievances if any pertaining to FPC will be addressed to Chief Compliance Officer, Orange retail finance India Private Ltd, Old no:4 New no:7 Second floor, Indira nagar 8th cross street, Adyar, Chennai 600020, Ph: 044-24453052, Email:email@example.com
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.
The Company shall abide by this Fair Practices Code following the spirit of the Code and in the manner it may be applicable to its business.