Introduction

This Fair Practice Code is aimed to provide to all the stake holders, especially customers effective overview of practices followed by VEE ESS CAPFIN PVT LTD in respect of the financial facilities and services offered by the company to its customers. This code seeks to amend and supersede the earlier Code of Fair Practices framed by VEE ESS CAPFIN PVT LTD in accordance with Reserve Bank of India guidelines issued by the Department of Non-Banking Financial Companies, and revised to take into account amendment in the Guidelines on Fair Practice Code issued by the RBI vide Master Circular RBI/2015-16/16 DNBS (PD) CC No.054/03.10.119/2015-16 dated 1st July, 2015 on Fair Practices Code for NBFCs.

Objective

This code has been developed:

• To promote good, fair and trust-worthy practices by setting standards in dealing with customers
• To ensure transparency in the Company’s dealings with its customers
• To ensure compliance with legal norms in matters relating to recovery of advances
• To enable customers to have better understanding of what they can reasonably expect of the services offered by the Company
• To strengthen mechanisms for redressal of customer grievances

Application for Loans and their processing

1. All Loan Application Forms will contain detailed information relating to the terms and conditions governing the Loan and other relevant information affecting the interest of our valuable customers. These forms will also contain the particulars of standard documents to be submitted with the Application Form. However, the Company may, depending on the credit underwriting requirements require other documents from the customers, as it may deem fit.
2. The Company explains to the customers the contents of various loan documents in the vernacular language and further ensures that the customer understands the terms and conditions governing the Loan.
3. Loan application forms 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 may indicate the documents required to be submitted with the application form.
4. Wherever applicable, the Company shall follow the system of issuing acknowledgements for receipt of all loan applications. The Company will consider all the documents submitted and the information provided, verify the credit worthiness of the customer and evaluate the proposal at its sole discretion.
5. The completed loan application form will indicate the loan amount to be disbursed, information which affects the interest of the borrower, the annualised rate of interest applicable, processing fee (if any), dates of interest payments due, loan tenure etc. Company will provide the acknowledgement receipt of the loan application form with the time frame within which loan applications will be disposed of.
6. The company will convey in writing to the borrower in the vernacular 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 shall keep the acceptance of these terms and conditions by the borrower on its record.

Loan Appraisal and Terms and Conditions

1. The company will convey in writing to the borrower in the vernacular language as understood by the borrower, by means of sanction letter or otherwise, the following particulars:

1. Assets details &
2. Sanctioned Loan Amount
3. Annualised rate of Interest to be charged
4. Overdue interest
5. Cheque bouncing penalty
6. Tenor of loan
7. Instalment amount and structure
8. Commencement Date;

2. The Company shall furnish a copy of the loan agreement along with a copy each of all enclosures quoted in the loan agreement to all the borrowers after the disbursement of loans.

3. Company shall mention the penal interest charged for late repayment in bold in the loan agreement.

4. Acceptance of the Sanction Letter by the customer will be kept on record.

Disbursement of Loans and changes in Terms and Conditions

At VEE ESS CAPFIN PVT LTD, we will value openness and transparency in the system. Company will keep the customers informed in the vernacular language or a language as understood by the borrower, in the event of any modification in terms and conditions, repayment schedule, interest rates, security, and other changes material to customer’s relation with the company. Any changes in interest rates and charges shall be effected only prospectively. A suitable condition in this regard should be incorporated in the loan agreement.

Recall of Loan

Any decision pertaining to Recall of Loan or Acceleration of repayment or seeking of any additional securities shall be taken strictly in accordance with the relevant provisions in the respective agreement with the customer and amendments made thereto.

Release of Securities

1. 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 claims, Company 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 Company is entitled to retain the securities till the relevant claim is settled/paid.

2. Company will ensure that the charge over any security provided by the customer is relinquished upon the happening of any of the following events, subject to any legitimate right or lien for any other claim against the customer:

1. payment of all dues by the customer;
2. transfer of account and consequent settlement of all dues;
3. closure of the loan file in due course following settlement as per agreement.

In the event any other right or lien exists, the customer shall be notified about the same with full particulars thereof.

General Clauses

Repossession of Security

i. The Company has the right to take possession of the Asset by giving 30 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:

1. when the Borrower agrees for waiver of such notice;
2. when the Borrower has expressed his willingness to surrender the possession of the Asset voluntarily;
3. 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;
4. when the Borrower ceases to exist;
5. when the Borrower has absconded with a view to prevent the recovery of the dues from him; and
6. for any other similar reasons so as to facilitate peaceful taking possession of the Asset by the Lender;
7. on such other conditions as mentioned in the loan agreement executed between the Company and the borrower;

ii. The procedure for taking possession of the Asset includes:

1. when the Borrower fails to follow the demand made in the above referred 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;
2. by asking the customer personally to surrender the vehicle at a place convenient to the Lender;
3. by compelling the Borrower to hand over possession through the authorities so as to prevent the use of the Asset by the Borrower.;

iii. The above two clauses (i and ii) are not applicable to the cases wherein the Borrower surrenders the Asset voluntarily.

Responsibility of Board of Directors

The Board of Directors or the Committee thereof of Company shall lay down appropriate grievance redressal mechanism within the organization. Such a mechanism should ensure that all disputes arising out of the decisions of Company’s functionaries are heard and disposed of at least at the next higher level. The Board of Directors either through itself or by through any Committee thereof shall also provide 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 may be submitted to the Board at regular intervals, as may be appropriate.

Grievance Redressal and Customer Relationship Management

It shall be the endeavour of the Company to improve the quality of service and redress complaints and grievances, if any, of the customers as part of Customer Relationship Management. Customer complaints, shall in the first instance, be logged in at the nearest branch. The designated Customer Satisfaction Executive shall be the first point of contact.

Repossession of vehicles financed by the Company

The loan agreement of the company shall contain necessary repossession clauses with relevant details thereof as prescribed by RBI from time to time.

Interest Rates and Gradation of Risk

Aim of adopting these practices is to communicate the annualized rate of interest to the borrower along with the approach for gradation of risk and rationale for charging different rates of interest to different categories of borrowers to have a transparent trade with customers and also to comply with the regulatory guidelines