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Policy

Fair Practices Code

Our commitment to transparent, responsible, and fair lending practices as mandated by the RBI.

Last updated: 01 April 2024
Approved by Board of Directors · Ashiana Fincap Private Limited

1. Introduction

Ashiana Fincap Private Limited ("the Company") is committed to ethical, transparent, and responsible lending. This Fair Practices Code ("FPC") has been adopted in accordance with the Reserve Bank of India (RBI) Master Direction – Non-Banking Financial Company – Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016, as amended from time to time, and the RBI Guidelines on Fair Practices Code for NBFCs.

2. Application Processing

  • All loan application forms shall be comprehensive and contain adequate information to enable borrowers to make a meaningful comparison with the terms offered by other lenders.
  • The Company shall acknowledge receipt of all loan applications and shall communicate the decision (sanction / rejection) within a reasonable time.
  • In case of rejection, the Company will communicate the reason(s) in writing, to the extent permissible.

3. Loan Appraisal and Terms & Conditions

  • The Company shall convey in writing, the amount of loan sanctioned along with the terms and conditions, including annualised rate of interest, method of application, pre-payment charges, and penalty charges before disbursement.
  • The Company shall obtain acknowledgement of the sanction letter from the borrower.
  • The Key Fact Statement (KFS) will be provided to every retail borrower at the time of sanction.

4. Disbursement of Loans

  • The Company shall disburse loans only after all pre-disbursement conditions are satisfied and documentation is complete.
  • Changes in terms and conditions, if any, will be communicated to the borrower in advance with adequate notice.

5. Interest Rates and Charges

  • The Company follows a Board-approved Interest Rate Policy. Interest rates are determined based on cost of funds, risk premium, and tenor.
  • All charges, fees, and penalties are disclosed upfront in the sanction letter and KFS.
  • Penal charges (not interest) may be levied for non-compliance with material terms and conditions of the loan agreement, as per the RBI Circular dated 18 August 2023 effective 01 April 2024.

6. General

  • The Company will not interfere in the affairs of borrowers except for legitimate purposes as stated in loan documents.
  • The Company will not resort to undue harassment or coercive methods for recovery.
  • The Company will not discriminate on grounds of gender, caste, or religion.
  • Outsourced recovery agents shall adhere to this Code.

7. Grievance Redressal

Borrowers with grievances may approach the designated Grievance Redressal Officer. If not satisfied, they may escalate to the RBI Ombudsman at https://cms.rbi.org.in/cms.

8. Review

This Code is reviewed annually by the Board of Directors and updated as required by regulatory changes.

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