In presence of the revised guidelines on FPC issued by Reserve bank of India to all Non-Banking Finance companies(NBFCs),Fintree Finance Private Ltd.("Fintree"),an NBFC, has formulated its FPC which inter-alia, covers principals on disclosures on the terms and conditions relating to receipt of loan applications from the prospective borrowers and processing thereof, sanction, monitoring and recovery of loans and other financial products being offered by it, the Grievances Redressal Mechanism in place etc.
It is, and shall be the policy of Fintree to make available all financial products offered by the Company, to eligible applicants, without discrimination on the basis of race, caste, colour, religion, sex, marital status, age or physical disability etc.
The salient features of FPC are summarised in the following paragraphs for the information of the public.
1. Application for loans and their processing:
- Loan application forms are available in English / explained in vernacular language and made understood in the vernacular language of the applicant for easy examination/understanding by the prospective borrowers. However, before offering any kind of credit facility, Fintree assesses the economic viability of the proposal submitted by the client.
- Loan application of Fintree includes necessary information which is likely to affect the interests of the prospective borrower, so that a meaningful comparison with the terms and conditions offered by other lenders can be made and an informed decision taken by the applicant.
- The loan application form indicates the documents required to be submitted including those required under KYC guidelines of RBI.
- Fintree provides acknowledgement to the prospective borrower for receipt of loan application. The time frame within which loan application will be disposed of is mentioned in such acknowledgement.
2. Loan Appraisal and Terms/ Conditions:
- Fintree conveys in writing to the prospective borrower the fate of the loan application by means of sanction letter or otherwise. In the case of sanction of loan, the sanction letter contains the amount of loan sanctioned and terms and conditions including annualised rate of interest and method of application thereof.
- The acceptance of the terms and conditions communicated by the borrower is preserved by Fintree in its records and a copy of the same is also provided to the borrower.
- Fintree mentions the rate and time when the penal interest is charged, if any, as per Board's decision for late payment in bold in the sanction letter and loan agreement.
- Fintree furnishes a copy of the loan agreement along with a copy of each of enclosures quoted in the loan agreement to all clients at the time of disbursement of loan.
3. Disbursement of loans including changes in terms and conditions:
- Fintree gives notice to the borrower in English or in vernacular language / the language as understood by the borrower, of any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges etc. Changes in interest rates and charges are effective prospectively and a suitable condition in this regard is incorporated in the loan agreement.
- Decision to recall/ accelerate payment or performance under the agreement is in consonance with the loan agreement.
- Fintree shall release all securities upon repayment of all dues or on realisation of the outstanding amount of loan subject to any legitimate right or lien for any other claim it may have against the borrower. The borrower shall be given due notice with full particulars about the outstanding claims and conditions under which the company will be entitled to retain the securities/ right of set off is to be exercised.
- Fintree refrains from interfering in the affairs of the borrower except for the purposes provided in the terms and conditions of the loan documents, unless new information not earlier disclosed deliberately or otherwise by the borrower has come to its notice.
- In case of receipt of request from the borrower for transfer of a borrower account to other NBFC, bank or financial institution, the consent or otherwise of Fintree shall be conveyed within 21 days from the date of receipt of such request in writing. Such transfer shall be in accordance with the contractual terms entered into with the borrower and in consonance with the statutes, rules, regulations and guidelines as may be applicable from time to time.
- In the matter of recovery of loans, Fintree shall resort only to remedies which are legally and legitimately available to it and will not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans, etc.
- Fintree has adopted an Interest rate policy taking into account relevant factors such as cost of funds, margin, risk premium etc. to determine the rate of interest to be charged on annualised basis for loans and advances and same is disclosed to the borrower in the loan application form and also disseminated on the website of the company.
5. Grievance Redressal Mechanism:
- Fintree guides its clients who wish to lodge a complaint and also provide guidance on what to do in case the client is unhappy with the outcome.
- After examining the matter, Fintree sends a response as soon as possible.
- Fintree designates an officer for the redressal of grievances of the clients, in connection with any matter pertaining to business practices, lending decisions, credit management and recovery and the same is indicated in the sanction letter. The Contact details of the present Grievance Redressal Officer is as below :
4th Floor, Engineering Centre,
Opera House, 9 Matthew Road,
Telephone No.: +912235111827
- If the customer's complaint / dispute are not redressed by the Grievance Redressal Officer within a period of one month, the customer may appeal to the Officer-in-Charge of the Regional Office of the Department of Non-Banking Supervision (DNBS) of the Reserve Bank of India (RBI), Mumbai under whose jurisdiction the registered office of Fintree falls. The name and contact details of the Officer-in-Charge of the Regional Office of the DNBS, RBI (also displayed on the website) are provided hereunder :
Department of Non-Banking Supervision
Mumbai Regional Office
3rd Floor, RBI Building,
Opp. Mumbai Central Railway Station, Near Maratha Mandir,
Byculla, Mumbai – 400 008
- The staff is also sensitised to be careful and courteous while dealing with the clients, more particularly, in the case of physically challenged persons and ladies.
6. Periodic Review:
- The Board of Directors of Fintree shall periodically review the compliance of FPC and the functioning of the Grievance Redressal Mechanism and a consolidated report of such reviews is submitted to the Board half yearly for information/further directions ,if any.