FAIR PRACTICES CODE

 »  With a view to setting out Fair Practices for borrowers in a transparent manner, Sakthi Finance Limited has decided to adopt the following as “ Fair Practices Code for Borrowers” (hereinafter referred to as “the FP Code”)

The Fair Practices Code applies to the following areas

• Application for loans and their processing
• Loan appraisal and terms and conditions
• Disbursement including changes in terms and conditions
• General

Application for loans and their processing

 » SFL will brief the intending borrowers about the terms and conditions of the loan offered by it and the documents  required to be submitted for availing loan. The 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 others can be made. Loan application form will also indicate the documents required to be submitted along with the loan application.

• Receipt of all loan applications will be duly acknowledged by SFL mentioning therein the time frame within which loan application form will be disposed of.

• All Loan applications forms will be disposed of within a period of 7 days from the date of receipt of duly completed loan application with all relevant documents.

Loan appraisal and terms and conditions

• In accordance with the company’s risk assessment procedures, each loan application submitted by the borrower will be processed and suitable margin / securities will be stipulated based on the risk assessment and company’s credit policy guidelines.

• The sanction of amount of loan along with the terms and conditions including annualized interest rate and method of application will be conveyed in writing and borrower’s acceptance of such terms and conditions will be obtained in writing.

Disbursement including changes in terms and conditions

• Any change in terms and conditions, including disbursement schedule, interest rates, service charges, prepayment charges etc will be individually informed to the borrower.

• Changes in interest rates and service charges will be effected, as far as possible, prospectively..

• A copy of loan / Hire Purchase agreement with all enclosures quoted in the loan / hire purchase agreement shall be furnished to the borrowers /hirers before disbursement of loan / advance amount.
  

• A suitable clause in this regard will be incorporated in the loan agreement.

• Decision to recall / accelerate payment or performance under the loan agreement will be in line with the loan agreement.

• All securities pertaining to the loan would be released on receipt of full and final payment of the loans subject to any legitimate right or lien for any other claim that the company may have against the borrowers. If such lien or right of set off is to be exercised, the borrowers would be given due and proper notice with requisite details.

General

• The company would refrain from interference in the affairs of the borrowers except for what is provided in the terms and conditions of loan agreement (unless new information, not earlier disclosed by the borrower, has come to the notice of the borrower)

• In case of request for transfer of borrower’s account, the company’s consent or otherwise shall be conveyed within 21 days from the date of receipt of request.

• There would not be any undue harassment by persistently bothering the borrowers at odd hours, use of muscle powers for recovery of loans.

Complaints

• In case of any complaint / grievance, the borrowers will have to inform in writing to the branch concerned. The Branch Managers shall immediately take up the matter for speedy redressal. 

Grievance Redressal Mechanism

• All disputes arising out of the decisions of the branches in relation to borrower’s account shall be heard and disposed of at the next higher level. In this regard, the following officials of the Company may please be contacted:
  1. Dr S Veluswamy, President (Operations)
  2. Company Secretary.

• This FP Code would be under review from time to time