Fair Practices Code

A. Introduction

Pursuant to RBI vide Circular DNBS.CC.PD.No.266/03.10.01/2010-11 dated March 26, 2012 and vide Circular DNBS.CC.PD.No.320/03.10.01/2012-13 dated February 18, 2013 (“Guidelines”), issued to Non-Banking Financial Companies (NBFCs), the Board of Directors have adopted a Fair Practices Code for OptaCredit Fintech Private Limited (“the Company”).

This Fair Practices Code has been prepared in compliance with the “Guidelines on Fair Practices Code for NBFCs” issued by the Reserve Bank of India and aims to provide its borrowers an effective overview of the practices followed by the Company and to enable borrowers to take informed decisions in respect of the financial facilities and services offered by the Company.

The Code covers the general principles on adequate disclosures on the terms and conditions of the loan and the procedures to be followed when dealing with the borrowers. The Company will adhere to the Fair Practices Code in its functioning, in all categories of its products and services offered. The Key elements of the Fair Practices Code are as follows:

The following are the primary objectives of this Code:
  • Promote fair and transparent practices by setting minimum standards in dealings with borrowers;
  • Foster fair and cordial relationship between the borrowers and the Company;
  • To ensure compliance with regulatory requirements with regard to customer interface;
  • To strengthen mechanisms for redressal of customer grievances.

  • a) The Company is in the business of lending and offers various products including ,but, not limited to short-term (upto 12 months) unsecured business loans, and, short-term (upto 12 months) unsecured personal loans. Application forms for each of the product offered by the Company would be different depending on the requirement for information for each product.
  • b) All necessary information that may be required by the borrowers, with regard to the financial facility that is being applied for, are available in the company’ s website and relevant online loan application forms. The information would include matters which may affect the interests of the borrower, so that a meaningful comparison with the terms and conditions offered by other NBFCs/Financial Institutions can be made and informed decisions can be taken by the borrowers.
  • c) Besides, the various documents that need to be submitted with the application form are also provided in the application forms. The Company would give an acknowledgement for receipt of all loan applications.
  • d) The Company would verify the loan applications within a reasonable period of time and if additional details / documents are required, it would intimate the borrowers immediately.

  • a) The Company would ensure that there is proper assessment of credit application made by borrowers. The assessment would be in line with the Company's credit policies and procedures.
  • b) The Company would convey in writing to the borrower by means of sanction letter or otherwise, the amount of loan sanctioned along with the terms and conditions and keep the acceptance of these terms and conditions by the borrower on its record.
  • c) The Company mentions the penal (additional) interest charged for late repayment in clearly highlighted in the loan agreement. The Company furnishes a copy of the loan agreement along with a copy each of all enclosures quoted in the loan agreement at the time of disbursement of the Loan.

  • a) The Company shall give notice to the borrower of any change in the terms and conditions including interest rates, service charges, fees etc. Changes in Interest rates and charges shall be effected prospectively and a suitable condition in this regard shall be incorporated in the loan agreement.
  • b) Decision to recall/accelerate payment or performance under the agreement shall be in consonance with the loan agreement.
  • c) The Company shall 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 claim the company may have against the borrower. 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, the Company is entitled to retain the securities, till the relevant claim is settled/paid.

  • a) The Company would not cause interference in the affairs of the borrowers except for what is provided in the terms and conditions of the loan agreement (unless new information, not earlier disclosed by the borrower, has come to the notice of the Company).
  • b) In case of receipt of request received in writing for transfer of borrowal account, either from the borrower or from a bank/financial institution, which proposes to take over the account, the consent or otherwise i.e., objection of the Company, if any, would be conveyed within 21 working days from the date of receipt of request. Such transfer will be as per transparent contractual terms in consonance with law.
  • c) The Company would not discriminate on grounds of sex, caste and religion in the matter of lending. However, this does not preclude the Company from participating in credit-linked schemes framed for weaker sections of the society.
  • d) In the matter of recovery of loans, the Company would adopt legally valid processes and not resort to undue harassment or use of force viz., persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans, etc., The Company shall adequately train the collection executives and other staff to deal with the borrowers in an appropriate manner.

A review of compliance of the Fair Practices Code and the functioning of the grievance redressal mechanism would be done by the Management regularly and a consolidated report of such reviews will be submitted to the Board of Directors.

The Company has designated Sriram Chandramouli as Nodal Officer for receiving and resolving complaints from customers.
The contact details of the Grievance Redressal Officer (GRO) are given below:

Sriram Chandramouli
OptaCredit Fintech Private Limited
No.56, 1st Floor, Thirumalai Pillai Road
T.Nagar, Chennai - 600017

If the grievances / complaints are not redressed satisfactorily, the customer may appeal to the Officer-in-Charge at the Regional Office of DNBS of RBI.

Regional Director - Chennai
Chennai Regional office, Reserve bank of India
Fort Glacis, Rajaji Salai,
Chennai 600 001.