Frequently Asked Questions - Fair Practice

This Code has been developed to:

• promote good, fair and trustworthy practices by setting minimum standards in dealing with the customers;
• increase transparency to enable the customers to have a better understanding of what they can reasonably expect of the services;
• promote a fair and cordial relationship between the customers and the Company.

a. Act efficiently, fairly and diligently in our dealings with all our customers by:

• Meeting the commitments and standards specified in the Code for the products and services which the Company offers and in the procedures and practices its staff follows;
• Making sure that Company's products and services meet relevant laws and regulations;
• Providing professional, courteous and speedy services;
• Providing accurate and timely disclosure of terms and conditions, costs, rights and liabilities as regards financial transactions.

b. Help customers understand how company's product work by:

• Explaining their financial implications

c. Deal quickly and sympathetically with things that go wrong by:

• Correcting mistakes;
• Handling customer's complaints;
• Telling customers' how to take their complaint forward if they are still not satisfied.

d. Not to discriminate the borrower on the basis of religion, caste, sex, descent or any of them.

• The Company shall have a loan application form in physical/ digital mode for all the products offered to its customers depending upon the nature of the product. Loan application forms would include necessary information of the customers, features of the product and the documents required to be submitted for loan 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, duly signed.
• The Company will have a system of giving acknowledgement for receipt of loan applications either through physical mode or digital mode like SMS, Email Id, etc. The time frame within which loan applications will be disposed of will be indicated in the acknowledgement.
• The Loan Application Form shall be in a vernacular language or language as understood by the customer.

• 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. In case any additional information or documents are required the company will convey the same to the customer within a reasonable time.
• After necessary assessment, the Company will convey in writing in physical/digital mode to the borrower, in vernacular language of language as understood by the borrower, by means of an offer letter or any other mode, the amount of loan approved along with the terms and conditions, including the annualised rate of interest thereof. It would keep the acceptance of these terms and conditions by the borrower on the Company’s files in digital (including OTP based) or physical mode as applicable.
• 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 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.

• Penalty, if charged, for non-compliance of material terms and conditions of loan contract by the borrower shall be treated as ‘penal charges’ and shall not be levied in the form of ‘penal interest’ that is added to the rate of interest charged on the advances. There shall be no capitalisation of penal charges i.e., no further interest computed on such charges.
• The Company shall not introduce any additional component to the rate of interest and ensure compliance to these guidelines in both letter and spirit.
• The quantum of penal charges shall be reasonable and commensurate with the noncompliance of material terms and conditions of loan contract without being discriminatory within a particular loan/product category.
• The penal charges in case of loans sanctioned to ‘individual borrowers, for purposes other than business’, shall not be higher than the penal charges to non-individual borrowers for similar non-compliance of material terms and conditions.
• The quantum and reason for penal charges shall be clearly disclosed by the Company to the customers in the loan agreement and most important terms & conditions/Key Fact Statement (KFS) as, in addition to being displayed on the website of the Company under Interest rates and Service Charges.
• Whenever reminders for non-compliance of material terms and conditions of loan are sent to borrowers, the penal charges shall be communicated. Further, any instance of levy of penal charges and the reason therefor shall also be communicated.

• AAny 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 or a language as understood by the borrower. Any changes in interest rates and charges will be effective only prospectively.
• Any decision to recall, accelerate payment would be communicated to the borrower in writing as per the terms of the agreement.
• No Due Certificate shall be issued on recovery of all dues. Collateral, if any, will be released along with the No Due Certificate. Any collateral taken to guarantee the performance of contract will be duly acknowledged and kept in safe custody.