Pursuant to the Notification issued by the Reserve Bank of India by its
Circular No. DNBS (PD) CC No.80/03.10.042/2005-06 dated 28th
September 2006, Sugal & Damani Finlease Limited (referred to as the
“Company”) has formulated this Fair Practices Code to lay down the
following procedures/practices in dealing with the business transactions.
This Code shall come into force with effect from 17.09.2007.
i) Applications for loans and their processing
(a) Loan Application Forms include necessary information, which affects the
interest of the 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 form indicates the documents
required to be submitted with the application form.
(b) The Company would give acknowledgement for receipt of all loan
applications. The time frame within which loan applications shall be
disposed of is also indicated in the acknowledgement.
(ii) Loan appraisal and terms/conditions
The Company shall convey in writing to the borrower by means of sanction
letter, 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 the acceptance of these terms and conditions by the
borrower on its record. The Company shall also communicate to the
borrower if the loan is rejected.
(iii) Disbursement of loans including changes in terms and conditions
(a) The Company shall give notice to the borrower of any change in the
terms and conditions including disbursement schedule, interest rates, service
charges, prepayment charges etc. The Company shall ensure that changes in
interest rates and charges are effected only prospectively. The Loan
Agreement contains necessary provisions to this effect.
(b) Decision to recall / accelerate payment or performance under the
agreement shall be in consonance with the loan agreement.
(c) The Company shall release all securities on repayment of all dues or on
realisation 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.
(iv) General
(a) 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.).
(b) In case of receipt of request from the borrower
for transfer of borrowal account, the consent or otherwise
i.e. the Company’s objection, if any, shall be conveyed
within 21 days from the date of receipt of request.
Such transfer shall be as per transparent contractual
terms in consonance with law.
(c) In the matter of recovery of loans, the company
shall not resort to undue harassment viz. persistently
bothering the borrowers at odd hours, use of muscle
power for recovery of loans, etc.
(v) Grievances, if any, in connection with this Code shall be
addressed to Sri N. Sugalchand Jain, Managing Director, Sugal & Damani
Finlease Limited, City Centre Plaza( I Floor), 7, Anna Salai, Chennai – 600
002 by letter with copy marked to Shri S. Vinodh Kumar Jain, Chief
Executive, Sugal & Damani Finlease Limited, City Centre Plaza( I Floor), 7,
Anna Salai, Chennai – 600 002 or by email to sugalfinlease@rediffmail.com. |
