The Company shall abide by this “FAIR PRACTICES CODE” as applicable to the business of providing microfinance services to its WOMEN members. In order to enhance value and relevance to the Borrowers, this CODE would be subjected to review from time to time. Suggestions for improvement are expected from all quarters.
- LOAN APPLICATION – PROCESSING
Application forms for loans will include terms & conditions of the loan and the documents required to be submitted. Applicant who has completed Group Recognition Test and submitted KYC documents to the satisfaction of the Company will be eligible to submit application for loan. Receipt of completed application forms will be duly acknowledged. All loan applications will be disposed off within a period of 4 weeks (or such extended time as mutually agreed upon) from the date of receipt of duly completed loan applications
i.e. with all the requisite information and related documents. Loan sanction letters incorporating all terms of sanction will be issued to members as & when sanctioned.
- LOAN APPRAISAL AND TERMS/ CONDITIONS
In accordance with Company‟s prescribed assessment procedures, each loan application will be appraised based on Company‟s guidelines viz. purpose, attendance at centre meetings, past repayment record, current income and repayment capacity The sanction of loan along with the terms and conditions thereof is conveyed to the Applicant in writing.
DISBURSEMENT OF LOAN
Disbursement of loans sanctioned shall be made only on compliance of terms and conditions including execution of loan documents governing such sanction. Any change in the terms and conditions, including disbursement schedule, interest rate and processing charges, will be notified to the Borrower. Changes in interest rates/processing charges will be effected prospectively only. Company shall intimate the terms & conditions and interest rate to the borrower in the form of a pass book sheet. Company shall frame internal principles and procedures to determine and adopt interest rates and other charges and ensure that they are not excessive.
- POST DISBURSEMENT
A decision to recall / accelerate payment or performance shall be as per loan agreement entered into with the Borrower. In the course of recovery, Company would not resort to harassment and avoid any conduct suggestive of any threat or violence. Company shall conduct itself decently when its Authorized Persons visit the Borrower‟s place in case of need to recover dues and such calls will generally be between 0700 hours and 1800 hours, and shall also avoid visiting at odd hours/inappropriate/calamitous occasions. A repayment holiday equivalent to the frequency of repayment (Weekly / Fortnightly / Monthly) from the date of disbursement will be permitted and the collection will start from the subsequent centre meetings.
GRIEVANCES – REDRESSAL
In case of any complaint/grievance from the Applicants/Borrowers, Company’s Officials will respond to redress it within 4 weeks and in case of dissatisfaction, they can take it to higher level for redress. Contact details of Company officials are prominently displayed at offices for the benefit of loan applicants / Borrowers. Company officials from Corporate Office and Controlling offices will make regular visits to interact with Centre/Group Leaders and loan Applicants/Borrowers to attend to complaints / grievances and ensure redressal.
ASSURANCE
The company would refrain from interference in the affairs of the Borrower except for what is provided in the terms and conditions of loan sanction documents (unless new information, not earlier disclosed by the Borrower, has come to the notice of the Company as „lender‟). The Company will not discriminate between the loan applicants on the basis of gender, caste or religion The Company is taking care to prevent inappropriate staff behaviour & also ensure timely grievance redressal. The Company will always adhere to the Principle of being transparent and fair lending practices.
