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FAIR PRACTICE CODE

Introduction

The Fair Practices Code aims to provide to all those who will be associated with the Company with information about the practices the Company follows in respect of the financial facilities, loans and services provided, which will facilitate the customers/borrowers 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.

One Capitall Ltd has adopted the Fair Practices Code (hereafter referred to as 'FPC') pursuant to Reserve Bank of India's (hereafter referred to as 'RBI') Circular DNBS (PD) CC NO.80/03.1O.042 /2005- 06 of 28 September 2006, issued to Non-Banking Financial Companies (NBFCs). Further to RBI's circular DNBS.CC.PD.No.266/03.10.01/2010-11 dated March 26, 2012 on the Guidelines on Fair Practice Code for NBFCs, the Company has modified and adopted the FPC as stated below in conformity with the Guidelines given by RBI in the aforesaid Circulars.

Objective

  • To conduct business in accordance with prevailing Statutory, Regulatory and Corporate Governance principles.
  • To increase fairness, transparency and consistency in dealings with its customers/borrowers.
  • To provide customers/borrowers with key terms and conditions of facility provided for their consideration prior to commitment of a transaction
  • promote fair and cordial relationship between the Company and its Customers/Borrowers.

 

Application for Loans and their processing

  • All Communications will be made in a language understood by the borrowers or in a vernacular language, wherever required.
  • The Loan Application Forms shall include necessary information which affects the interest of the customer/borrower, so that a meaningful comparison with the terms and conditions offered by other NBFCs can be made and informed decision can be taken by the borrower.
  • The Loan Application Forms will provide an indicative list of KYC documents and other documents to be submitted, together with the duly completed application form. The need for such information and documents shall be explained to the borrower and reasonable time shall be provided for submission of the same.
  • An acknowledgement shall be provided for all loan applications received. The Company will indicate the approximate time frame within which the loan application will be processed post the submission of completed Loan Application Form.
  • If any additional details/ documents are required, the same shall be intimated to the borrower. The need for such information and documents shall be explained to the borrower and reasonable time shall be provided for submission of the same.

 

Loan Appraisal and terms/ conditions

  • The Loan applications shall be subject to the Company's credit appraisal process and a due diligence on the creditworthiness of the borrower which will form an important parameter for taking a decision on loan application.
  • The Company shall convey in writing to the borrower by means of sanction letter in the language understood by the borrower or in vernacular language, if required, the amount of loan sanctioned along with the terms and conditions including annualised rate of interest and method of application thereof.
  • The Company shall keep on its record the acceptance by the borrower on the sanction letter.
  • At the time of sanction/disbursement of loans, the Company shall furnish to all borrower a copy of the loan agreement alongwith a copy of all enclosures quoted in the loan agreement, preferably in vernacular language or in the language as understood by the borrower, which will contain a form of a Term Sheet containing the terms and conditions, the rate of interest, additional interest for delay in payment of any dues , penal charges for defaults that shall be annexed to the loan agreement.

 

Disbursement of loans including changes in terms and conditions

  • The OCL shall frame internal principles and procedures for determining and ensuring that the interest rates and processing and other charges are not excessive.
  • The disbursement will be done upon compliance of all the terms and conditions of the sanction by the borrower.
  • The Company shall give notice to the borrower in vernacular language or in the language understood by the Borrower, of any changes to the terms and conditions,including disbursement schedule, interest rates, service charges, prepayment charges, etc.
  • Changes in the interest rates and other charges shall be effected prospectively other than under circumstances arising from regulatory instructions. Retrospective changes shall as far as possible be avoided and shall be implemented only within the framework defined in the Loan Agreements.
  • Decision to recall / accelerate payment or performance under the agreement shall be in consonance with the loan agreement.

 

Release of Securities

The Company shall release all securities on repayment of all dues or on realisation of the outstanding amount of loan and/or all dues owed to the Company, 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.

Repossession of Security

  • The Lender has the right to take possession of the Asset by giving 7 days' notice to the borrower to clear the dues or to hand over possession of the Asset. Such notice need not be given in the following circumstances:
    • when the borrower agrees for waiver of such notice
    • when the borrower has expressed his willingness to surrender the possession of the Asset voluntarily
    • when there is reasonable apprehension to the Lender or its officers/agents that such notice may defeat the taking of possession of the Asset due to any foul play or forcible resistance from the part of the borrower/guarantor(d) when the Asset remains abandoned by the borrower for any reason.
    • when the borrower is no more.
    • when the borrower has absconded with a view to prevent the recovery of the dues from him and
    • for any other similar reasons so as to facilitate peaceful taking possession of the Asset by the Lender.
  • The procedure for taking possession of the Asset includes:
    • when the borrower fails to follow the demand made in the above referred to notice the Lender may approach appropriate forum for an order enabling it to take possession of the Asset by suitable ways either by way of a commissioner or receiver;
    • by asking the customer personally to surrender the Asset at a place convenient to the Lender;
    • by compelling the borrower to hand over possession through the authorities so as to prevent the use of the Asset by the Borrower.
  • However the above two clauses (a) and (b) are not applicable to the cases wherein the borrower surrenders the Asset voluntarily.
  • Provision regarding final chance to be given to the borrower for repayment of the loan before the sale / auction of the property.
  • The Lender is entitled to transfer in any form like sale, rental and conversion for own use etc. the Asset, the possession of which is obtained in any of the ways stated above or otherwise, in connection with the default, in the way convenient to the Lender and appropriate the proceeds thereof towards repayment/dues from the borrower, when the borrower and guarantor fails to follow the notice for repayment of the dues within 7 days in any of the modes of service of such notice at the convenience of the Lender, as a final chance to avoid the transfer under this clause. This right to transfer does not take away the sole discretion of the Lender to return the possession of the Asset in appropriate cases.
  • If such sale proceeds are insufficient to discharge the entire dues, Lender shall move further against the borrower and/or the guarantor and if the sale proceeds exceeds the due, the balance shall be paid to the borrower when he claims it. However the above entitlement is no bar for the Lender to proceed against the borrower and/or guarantor directly, sparing the proceedings against the security.
  • The Lender is entitled to recover from the borrower all types of expenses on full indemnity basis, incurred by or on behalf of the Lender in ascertaining the whereabout of the Asset, taking possession, garaging, insuring, transporting and selling the Asset and also for other legal steps in connection with this Agreement.

General

  • The Company shall refrain from interference in the affairs of the borrower, except for the purposes provided in the terms and conditions of the loan agreement, (unless new information, not earlier disclosed by the borrower, has come to the notice of the Company).
  • In the matter of recovery of loans, the Company shall follow procedures as laid down in the internal guidelines and provisions and would remain within the legal framework.
  • The Company may arrange for enforcing security provided by the delinquent borrower. In all such instance the Company shall ensure that the entire process of enforcing its security, valuation and realization thereof is fair and transparent
  • The Company shall ensure that it's employees are adequately trained to deal with borrower in an appropriate manner.

 

Grievances Redressal

  • In case of any complaint/grievance, the applicant/borrower may contact through any of the following channels:
    • E-mail : services@onecapitall.com
    • Fax : 022 – 2605 2915
    • Mail : One Capitall Ltd, Patel House, Ground Floor, Plot No. 48. Gazdar Bandh, North Avenue Road, Santacruz (West), Mumbai - 400 054.
  • All grievances shall be heard and disposed off by a person at least one level higher to the person /designation against / relating to whom the grievance is made. After examining the matter, it will be our endeavor to provide the borrower/applicant with our final or other response, within a period of six (6) weeks from receipt of such complaint / grievance.
  • The Board will periodically review the compliance of this FPC and the functioning of the grievances redressal mechanism at various levels of management.

 

Interest Rate

  • The Company shall ensure that it will not unduly charge excessive interest rates to its borrowers.
  • The interest rate for its borrower would be arrived at taking into account the broad parameters such as risk profile of the client, interest rate trends prevailing in the money market, cost of borrowings, primary and collateral security offered by borrower / structure of the deal, interest rate charged by competitors and the historical track record of the borrower with the Company.
  • The Interest Rate Policy adopted by the Company for determining the Interest rate, processing fees and other charges is published on its Website www.onecapitall.com.
  • Interest rates would be intimated to the borrower at the time of sanction / availing of the loan.

The Company shall abide by this FPC following the spirit of the Code and applicability to it's business.

 

 

 

 

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