FAIR PRACTICES CODE – ASSETIFY PRIVATE LIMITED

Introduction

ECW Consultants Private Limited, (“The Company”) issues this fair practices code in conformity with Chapter V of Master Direction DNBR.PD.007/03.10.119/2016-17 - Non-Banking Financial Company – Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016, wherein the Reserve Bank of India (RBI) has revised the guidelines on Fair Practices Code for NBFCs to implement the same.

The Company provides finance to Individuals, Partnership Firms, Companies and other Legal entities who want to purchase vehicles or other assets, as part of its business. The Company has therefore framed and adopted a voluntary code, which sets out the principles for fair practice standards when dealing with customers and providing any services as a part of its business.

By Enacting this code, the Company is expecting to give a glimpse at the fairness and reasonableness standards as envisaged in the code, that will be practiced by the Company in its affairs. The Company shall ensure that any product or services offered by the Company is legal and is in consonance with this code. The Company shall adhere to strict ethical standards and shall be transparent and forthcoming to the customers with respect to its products and services. The Company shall ensure that the customers are aware of the financial implication and the norms of the fair practice code while availing the products and services of the company. A stage wise application of the Fair Practice Code that would be followed by the Company is provided hereafter

Applications for Loans and their Processing

1. The Company shall ensure that all communications to the borrower shall be in the vernacular language or a language as understood by the borrower.
2. The Loan application forms of the Company will 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 will indicate the documents required to be submitted with the application form.
3. The Company will have a system of giving acknowledgement for receipt of all loan applications. The time frame within which loan applications will be disposed of will be indicated in the acknowledgement.

Loan Appraisal and Terms/Conditions

The Company will convey in writing to the borrower in the vernacular language or a language as understood by the borrower by means of sanction letter or otherwise, the amount of loan sanctioned along with the terms and conditions including annualised rate of interest and method of application thereof and keep the acceptance of these terms and conditions by the borrower on its record. The Company will mention the penal interest charged for late repayment in bold in the loan agreement.

The Company will furnish a copy of the loan agreement preferably in the vernacular language as understood by the borrower along with a copy each of all enclosures quoted in the loan agreement to all the borrowers at the time of sanction / disbursement of loans.

Disbursement of Loans including changes in terms and conditions

1. The Company will give notice to the borrower in the vernacular language or a language as understood by the borrower of any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges etc. The Company should also ensure that changes in interest rates and charges are effected only prospectively. A suitable condition in this regard will be incorporated in the loan agreement.
2. Any Decision by the Company to recall / accelerate payment or performance under the agreement will be in consonance with the loan agreement.
3. The Company will 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 will 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.

General

1. The Company will 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).
2. In case of receipt of request from the borrower for transfer of the account, the consent or otherwise i.e. objection of the Company, if any, will 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.
3. In the matter of recovery of loans, the Company will not resort to undue harassment viz. persistently bothering of the borrowers at odd hours, use of muscle power for recovery of loans, etc. To avoid rude behavior from the staff of the Company, .the Company shall ensure that the staff are adequately trained to deal with the customers in an appropriate manner.
4. The Company shall not charge foreclosure charges/ pre-payment penalties on any floating rate term loans sanctioned to individual borrowers.

Responsibility of Board of Directors

1. The Board of Directors of the Company have laid down an appropriate grievance redressal mechanism within the organization. Such a mechanism ensures that all disputes arising out of the decisions of lending institutions' functionaries are heard and disposed of at least at the next higher level.
2. The Board of Directors has laid down a mechanism for periodical review of the compliance of the Fair Practices Code and the functioning of the grievances redressal mechanism at various levels of management. A consolidated report of such reviews shall be submitted to the Board at regular intervals, as may be prescribed by it.

Grievance Redressal

1. The following information shall be displayed prominently, for the benefit of the customers, at all branches / places of the Company where business is transacted:

   Grievance Redressal Officer
   

   Name& Designation
   Telephone and Email
   Address

   If the complaint/dispute is not redressed within a period of one month the customer may appeal to the Officer-in-Charge of the Regional Office of Department of Non-Banking Supervision of the Reserve Bank of India, Thiruvananthapuram.

2. It shall be the endeavor of the company to improve the quality of service and redress complaints and grievances, if any, of the customers as part of Customer Relationship. Customers who have grievances in respect of decision of the company functionaries can also address their grievances at info@ecarworld.in

3. Posting on Website

   This Fair Practices Code, in the vernacular language or a language as understood by the borrower will be put up on the web-site of the Company for the information of various stakeholders.

4. Regulation of rate of interest

   1. The Board of Directors of the Company has adopted an interest rate model taking into account relevant factors such as cost of funds, margin and risk premium and has accordingly determined the rate of interest to be charged for loans and advances. The rate of interest and the approach for gradations of risk and rationale for charging different rate of interest to different categories of borrowers shall be disclosed to the borrower or customer in the application form and communicated explicitly in the sanction letter.
   3. The rates of interest and the approach for gradation of risks is made available on the web-site of the company or published in the relevant newspapers. The information published in the website or otherwise published shall be updated whenever there is a change in the rates of interest.
   4. The rate of interest is the annualised rate so that the borrower is aware of the exact rates that would be charged to the account.

5. Complaints about excessive interest charged by Applicable NBFCs

   The Company has laid out appropriate internal principles and procedures in determining interest rates and processing and other charges. In this regard the guidelines indicated in the Fair Practices Code about transparency in respect of terms and conditions of the loans are kept in view.

6. Repossession of vehicles or other assets financed

   1. The Company will include a built in re-possession clause in the loan agreement with the borrower which will be legally enforceable.
   2. To ensure transparency, the terms and conditions of the loan agreement, shall also contain provisions regarding:
      • Notice period before taking possession.
      • Circumstances under which the notice period can be waived.
      • The procedure for taking possession of the security.
      • A provision regarding final chance to be given to the borrower for repayment of loan before the sale / auction of the property.
      • The procedure for giving repossession to the borrower.
      • The procedure for sale / auction of the property.
      A copy of such terms and conditions will be made available to the borrowers.

7. Confidentiality

   The Company will treat all personal information of the borrowers as private and confidential (even when the borrower is no longer a customer). The Company will not reveal transaction details of the accounts to a third party, including to group entities, except under following circumstances –

   • The Company is required by, law or by the order of a court or any statutory authority or as a part of investigation by a public authority, to provide such information.
   • If it is in the interest of the borrower to provide such information (e.g. fraud prevention.
   • The Borrower requests us to provide information.
   • The Borrower give us permission to provide such information to our group / associate / entities or companies where the Company have tie-up arrangements for providing other financial service products.