FAIR PRACTICE CODE – COMPLIANT TO THE RBI CIRCULAR DNBS.CC.PD.No. 320/03.10.01/2012-13 dtd February 18, 2013
Applications for Loan & their processing
- Customers who have evinced interest in availing the loan from MMFSL should fill up the loan application form, complete in all aspects and should submit the same to the Company's nearest branch
- The application so received will be acknowledged by the Company immediately on submission and will be processed for sanction of the loan. The Company will consider all the documents submitted and the information provided, verify the creditworthiness of the customer and evaluate the proposal at its sole discretion and will grant loan by issuing a sanction letter within 10 days from the date of receipt of the loan application and if no communication is received by the customer, the loan application is deemed to have been rejected and the Company will not send any communication for rejected cases.
- Sanction letter in the vernacular language to be issued to all borrowers whose loan have been sanctioned after due diligence.
Loan Appraisal and Terms & Conditions
- The sanction letter in the vernacular language would convey the following:
- amount financed,
- documents to be submitted for disbursement of the loan,
- the rate of interest,
- details of security to be offered,
- repayment schedule
- penal interest or delayed payment charges (in case of delay in payments of installments beyond due dates)
- document to be executed by the guarantor and co-borrower for disbursement of loan.
- Copy of the sanction letter will have to be accepted. The customer will have to return to the Company a copy of the sanction letter duly acknowledged by him as a token of acceptance. Thereafter Company will issue D.O. / cheque in favour of the dealer or customer as the case may be.
- Though the existing loan agreement provides a clause for the delayed payment charges, the same is not in bold letters as suggested. Going forward, all loan agreements will mention this clause in bold letters.
Disbursement of Loans, including changes in terms & conditions
- Any change in terms of Conditions like change in interest rate, tenure, all charges/fees would be communicated to the borrower in writing in the vernacular language.
- Any decision to recall, accelerate payment would be communicated to the borrower in writing as per the terms of the agreement.
- NOC to be issued on recovery of all dues. Collateral, if any, will be released along with the NOC. Any collateral taken to guarantee the performance of contract will be duly acknowledged and kept in safe custody. Cross holding of securities will be duly communicated in writing vide RPAD giving reference of balance exposure in other contracts.
- Company will take recourse / actions only through legally permissible remedies as per the terms & conditions of loan agreement entered into with the borrower.
- Only written request from customers for transfer of liabilities will be evaluated by the company and written confirmation / rejection will be intimated to the customer within 21 days of after due diligence.
- Any agency to whom various activities are outsourced/entrusted will have to be short listed and empanelled as per the company policies issued from time to time.
- The Company has an exclusive recovery team who are specialized in handling collection activity in a professional manner by adopting a due legal process as per the law of the land. Since it is a specialized function, the quality is addressed at the recruitment level itself.
Grievance Redressal Mechanism #
In case of any complaint / grievance, the customer can make his complaint through any of the following modes :
In case customer chooses to log his complaint through either of website and email, an email / sms will be sent to the customer, acknowledging his complaint and also informing about his complaint number and expected time of resolution.
These complaints will be received by a Nodal Customer Care Executive (through a complaint tracking module) at our Head Office in Mumbai. These complaints would be then referred to respective location and function for resolution.
In case customer chooses to log his complaint at the branch he would be requested to give complaint in writing, In case customer is not able to write then, the branch accountant will fill his details filled in a complaint sheet and provide him his unique complaint number, with expected time of resolution. These complaints will be regularly monitored by Nodal Customer Care executive to ensure effective resolution and escalation.
The company will not only ensure that all the complaints received are recorded and resolved, but also ensure effective monitoring / escalation mechanism to the senior levels responsible so as to ensure that none of the complaints remain unresolved.
All disputes arising out of the decisions of branches in relation to the products and services shall be heard and disposed off at least at the next higher level. Therefore, the following 'Grievances Redressal Mechanism' is put in place
||Head Office Level
Post resolution of the complaint, the customer will get a mail / sms confirming the resolution of the complaint. At this point customer has to confirm whether the complaint has been resolved to his satisfaction or not. The complaint will be deemed closed if customer does not respond to mail / SMS.
At all branches of the company, prominent display boards will be put up informing them, about the Grievance Redressal Officer [including the name and contact details (Telephone / Mobile nos. and also e-mail address) (Branch Accountant) responsible for logging and resolving at the branch. Also detailed information (including contact details) will be mentioned on how to escalate the matter, in case customer finds resolution inadequate. If the complaint / dispute is not redressed within a period of one month, the customer may appeal to "The General Manager, Reserve Bank of India, DNBS Mumbai Regional Office, 3rd Floor, Garment House, Dr. Annie Besant Road, Worli, Mumbai-400018. Tel-022-24931214.
The customer complaint process and grievance redressal policy will be reviewed at regular intervals.
Complaints about excessive interest charged by NBFCs
The Company charges interest only as per the terms of the contract. The terms of the contract are clearly mentioned in the sanction letter as well as the loan agreement and any delay in payment of installments as per the repayment schedule will attract penal interest at the rate of 3% per month from the due date till the date of payment of the installment. This rate of interest is fixed to act as a deterrent to the customer in delaying the payment of the installment.
Regulation of excessive interest rates charged by NBFCs
Please refer our Policy on 'Interest rate and gradation of risk'
Repossession of vehicles financed
The Company adopts due legal process as detailed below for repossession of vehicles financed
- Termination of the contract
- Recall of the loan for all NPA cases
- Invocation of arbitration clause and appointment of arbitrator
- Filing statement of claim (S.O.C.) along with details of the agreement, invoice, asset with a prayer seeking interim relief of repossession of the vehicle before the arbitrator
- Arbitrator to send the S.O.C. to the respondents and intimate the date of hearing
- Seeking permission for interim relief of repossession on the date fixed for hearing
- Appointment of Receiver by the Arbitrator to repossess the vehicle
- After obtaining the interim order, informing concerned police station having jurisdiction about the repossession order along with the copy of the order
- Repossession of the vehicle with repossession order
# will be implemented in phases