Seo Title

FAIR PRACTICES CODE

FAIR PRACTICES CODE
01
INTRODUCTION

This Fair Practices Code Policy (“Code”) is adopted by Samraat Finlease Private Limited (“the Company”), a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India, in accordance with the applicable guidelines on Fair Practices Code issued for NBFCs. This Code is also aligned with the provisions of the Digital Lending Guidelines, 2022 and other relevant circulars, directions, and regulatory instructions issued by the Reserve Bank of India from time to time, with an emphasis on ensuring customer protection, transparency, and fair lending practices. The Code lays down the principles and standards to be followed by the Company in all its dealings with customers and is intended to provide a clear, transparent, and comprehensive understanding to all stakeholders, including but not limited to customers, of the practices adopted by the Company in respect of the products and services offered. This Code shall be applicable to all business operations of the Company and shall be binding on all employees, agents, and authorized representatives dealing with customers on behalf of the Company.

02
OBJECTIVES

The objectives of this Fair Practices Code are as follows:

  • To adopt and implement fair, transparent, and industry-standard practices in all dealings with customers;
  • To promote a fair and equitable relationship between the Company and its customers, and to ensure that all customer interactions are conducted in a just and non-discriminatory manner;
  • To ensure that borrowers are provided with clear, comprehensive, and timely disclosures regarding the terms and conditions of loans, including at the stages of application, appraisal, sanction, and disbursement;
  • To ensure compliance with all applicable laws, regulations, and regulatory guidelines in matters relating to recovery of dues, in a fair, lawful, and non-coercive manner;
  • To establish and maintain an effective and accessible mechanism for prompt redressal of customer grievances.

03
DEFINITIONS

For the purpose of this Code, the following terms shall have the meanings assigned to them below:

  1. “Company” shall mean Samraat Finlease Private Limited, a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India, and shall be used interchangeably unless the context otherwise requires.
  2. “Cooling-Off Period” shall mean the period provided to the Borrower after disbursement of the loan, during which the Borrower shall have the option to exit the loan by repaying the principal amount along with the proportionate Annual Percentage Rate (APR) and applicable charges, in accordance with the applicable regulatory guidelines.
  3. “Customer” / “Borrower” shall mean any individual who has applied for, availed, or is intending to avail of a loan from the Company.
  4. “Loan” shall mean any financial assistance extended by the Company to a Borrower, in accordance with the terms and conditions specified in the Loan Agreement.
  5. “Loan Agreement” shall mean the agreement executed between the Company and the Borrower, whether in physical or electronic form, governing the terms and conditions of the Loan.
  6. “Outstanding Amount” shall mean the total amount payable by the Borrower to the Company, including principal, interest, fees, charges, penalties, and any other dues, as applicable.
  7. “Services” shall mean lending-related services provided by the Company including loan application processing, appraisal, sanction, and disbursement.

04
AVAILABILITY OF FAIR PRACTICES CODE

The Code is available on the website, at offices, and on request.

05
LOAN APPLICATION

  • The Company shall provide all relevant information relating to the loan products and services to the borrower in a vernacular language or a language as understood by the borrower, so as to enable the borrower to make a meaningful comparison with the terms and conditions offered by other Non-Banking Financial Companies (NBFCs) and to take an informed decision.
  • The Company shall acknowledge receipt of all loan applications and shall, where feasible, indicate the indicative time frame within which the loan applications shall be processed.
  • The Company shall not discriminate against any borrower on the grounds of caste, creed, religion, gender, language, or region, and shall ensure fair and equitable treatment of all customers.
  • The loan application form shall clearly indicate the list of documents required to be submitted along with the application.
  • The Company shall inform the borrower, in a timely and reasonable manner, of any additional information or documents required for processing the loan application.

06
LOAN APPRAISAL

  • The Company shall convey the sanction of the loan to the borrower in writing, in a vernacular language or a language understood by the borrower, through a sanction letter or equivalent document, specifying the loan amount, applicable rate of interest, and key terms and conditions. The Company shall retain on record the borrower’s acceptance of such terms.
  • The Company shall transparently disclose all applicable charges, including penal charges for delayed payment, in the Loan Agreement. Such penal charges shall be reasonable, non-discriminatory, and commensurate with the default, and shall not be levied in the form of penal interest, in accordance with the guidelines issued by the Reserve Bank of India.
  • The Company shall provide the borrower with a copy of the executed Loan Agreement along with all relevant annexures.
  • The loan appraisal process shall be based on an assessment of the borrower’s income and repayment capacity, in compliance with the applicable regulatory guidelines issued by the Reserve Bank of India from time to time.
  • The Company shall provide a Key Fact Statement (KFS) to the borrower in accordance with applicable regulatory guidelines, containing key information relating to the loan, including Annual Percentage Rate (APR), charges, repayment obligations, and other applicable details.
  • The Company shall provide the Borrower with an option to exit the loan during the cooling-off period, as disclosed in the Key Fact Statement (KFS) and Loan Agreement, in accordance with applicable regulatory guidelines, including the Reserve Bank of India’s Digital Lending Guidelines. During such period, the Borrower may repay the principal amount along with the proportionate Annual Percentage Rate (APR) and applicable charges, without any prepayment penalty.

07
DISBURSEMENT OF LOANS AND CHANGES IN TERMS AND CONDITIONS

  • The Company shall provide the borrower with prior notice of any changes in the terms and conditions of the loan, including disbursement schedule, interest rates, service charges, and other applicable charges. Such communication shall be made in a vernacular language or a language understood by the borrower.
  • Any changes in interest rates and other charges shall be effected only on a prospective basis, as per the terms of the Loan Agreement.
  • Any decision to recall or accelerate repayment or performance under the Loan Agreement shall be in accordance with the terms and conditions of the said agreement.
  • Upon full repayment of the loan, the Company shall release any security or documents, if applicable, subject to applicable contractual rights.
  • Where the Company exercises its right of set-off, it shall provide prior notice to the borrower specifying the details of outstanding dues and the basis for retention of such securities.

08
INTEREST RATES AND RELATED CHARGES

  • The Company shall have in place a Board-approved policy and internal framework for determining interest rates, processing fees, and other applicable charges.
  • The Company shall adopt an interest rate model based on relevant factors such as cost of funds, operating expenses, margin, and risk premium, for determining the rate of interest on loans and advances.
  • The rate of interest and the approach for gradation of risk shall be disclosed on the Company’s website and shall be updated as and when there are any changes.
  • The rate of interest shall be communicated to the borrower on an annualized basis.
  • The Company shall disclose the Annual Percentage Rate (APR), inclusive of all applicable charges, to ensure transparency and enable the borrower to make an informed decision.

09
GRIEVANCE REDRESSAL

The Company has established an effective and robust grievance redressal mechanism to address and resolve customer complaints in a prompt and transparent manner. All grievances shall be handled by designated officials authorized by the Company. The details of the designated Grievance Redressal Officer, including the name, designation, contact details, and escalation mechanism, shall be available in the Company’s Grievance Redressal Policy, which shall be made accessible to customers through appropriate channels. Customers may register their complaints or raise concerns through the following channels:

  • Phone: 9910728731
  • Email: grievance@samraatfinlease.com
The Company shall ensure that all complaints are acknowledged and resolved within a reasonable timeframe, in accordance with the applicable guidelines issued by the Reserve Bank of India. In case the complaint is not resolved to the satisfaction of the customer within the stipulated time, the customer may escalate the matter in accordance with the applicable regulatory framework.

10
RECOVERY PRACTICES (NON-COERCIVE METHODS OF RECOVERY)

  • The Company shall have in place a Board-approved policy governing recovery practices, including a Code of Conduct for field staff, and robust systems for their recruitment, training, and supervision.
  • The Company shall strictly adhere to the guidelines and directions issued by the Reserve Bank of India from time to time, including those relating to fair practices, customer protection, and recovery of dues.
  • The Company shall ensure that its staff and authorized representatives maintain professional, courteous, and respectful conduct with borrowers. Any form of harassment, coercion, or unfair practices, including intimidation, use of force, or contacting borrowers at inappropriate hours or at their workplace without consent, is strictly prohibited.
  • The compensation structure for recovery personnel shall be designed to encourage fair treatment of customers and shall not solely be linked to recovery performance.
  • All recovery-related communications, including calls and visits, shall be made at appropriate times, ordinarily between 8:00 a.m. and 7:00 p.m., unless otherwise agreed by the borrower.

11
GENERAL

  • The Fair Practices Code shall be displayed in vernacular language or a language understood by the borrower at all offices and branch premises of the Company.
  • The details of interest rates (minimum and maximum, as applicable) and the grievance redressal mechanism shall be prominently displayed at all offices, in all customer-facing literature, and on the Company’s website.
  • The Company shall comply with the applicable Know Your Customer (KYC) guidelines issued by the Reserve Bank of India from time to time. Due diligence shall be carried out in accordance with the regulatory framework and internal policies to assess the borrower’s repayment capacity.
  • The Company shall ensure that the loan application process is simple, transparent, and not unduly burdensome, and that loan disbursements are made within a reasonable and pre-defined timeframe.
  • In case of receipt of a request from a borrower for transfer of the loan account, the Company shall process such request in accordance with applicable laws and regulatory guidelines. Any consent or objection of the Company, if applicable, shall be communicated within the prescribed timelines.

12
INTERNAL AUDIT AND CONTROL

  • The Company acknowledges that the primary responsibility for compliance with applicable regulatory directions rests with it as a Non-Banking Financial Company (NBFC) and has established appropriate organizational arrangements to ensure such compliance.
  • The Company shall designate responsible officials for monitoring and ensuring adherence to all applicable directions and guidelines issued by the Reserve Bank of India from time to time.
  • The Company shall implement adequate internal control systems, including internal audit mechanisms and periodic reviews, to assess and ensure ongoing compliance with regulatory requirements and internal policies.
  • The internal audit function shall periodically review compliance with this Code and report the findings to the senior management and, where applicable, to the Board of Directors.


PART B – DIGITAL PLATFORM TERMS AND CONDITIONS

The provisions contained in this Part (Section 13 onwards) govern the access to and use of the Company’s digital platform, including its website and the services offered thereon. These provisions are independent of, and in addition to, the Fair Practices Code set out in Part A of this Policy and are intended to ensure transparency, accountability, and customer protection in digital lending operations, in compliance with applicable laws and regulatory guidelines, including those issued by the Reserve Bank of India from time to time.

13
SERVICES

  • The Company provides digital lending services through its platform, enabling customers to apply for loans, submit required information and documents, and track the status of their applications, subject to eligibility criteria and applicable terms.
  • The Company shall collect, verify, and process customer information and documents for the purpose of credit appraisal, in accordance with applicable laws and regulatory guidelines. Loan sanction and disbursement shall be carried out by the Company in accordance with the terms and conditions of the Loan Agreement.
  • All actions undertaken by the Company shall be based on the explicit consent and instructions of the customer and shall be on a non-discretionary basis.
  • The Company may obtain the customer’s credit information from Credit Information Companies, with the customer’s consent, for the purpose of assessing creditworthiness.
  • The loan, if sanctioned, shall be disbursed through approved modes, and the borrower shall be liable to repay the outstanding dues in accordance with the agreed terms.
  • The customer shall be responsible for maintaining the confidentiality of account credentials and for activities carried out through such account, to the extent such activities are attributable to the customer. The Company shall implement adequate security measures to safeguard customer data and shall not be liable for unauthorized transactions arising due to factors beyond the customer’s control, subject to applicable laws and regulatory guidelines.
  • The Company shall collect only such data as is necessary for processing the loan application, assessing creditworthiness, and complying with regulatory requirements. Such data shall be collected with the explicit consent of the customer and shall be handled in accordance with applicable data protection laws and the guidelines issued by the Reserve Bank of India.
  • The Company shall not access or collect personal data unrelated to the loan process and shall ensure that customer data is used strictly for legitimate business purposes and in a transparent manner.

14
RESTRICTIONS

The customer shall not:

  • Use the Company’s platform or services for any unlawful, fraudulent, or unauthorized purpose, including activities involving fraud, misrepresentation, money laundering, or misuse of the services;
  • Provide false, inaccurate, incomplete, or misleading information or documents during the loan application or service process;
  • Impersonate any person or entity or attempt to access another person’s account or information without authorization;
  • Misuse, damage, disrupt, or attempt to gain unauthorized access to the Company’s platform, systems, or related services;
  • Upload, transmit, or share any content or information that violates applicable laws, infringes third-party rights, or compromises the security or integrity of the Company’s systems.
The Company reserves the right to restrict or suspend access to its services in case of any misuse or violation of these terms, subject to applicable laws and regulatory requirements.

15
INFORMATION AVAILABLE ON THE PLATFORM

The information and materials available on the Company’s platform are provided for general informational purposes and shall be read together with the applicable loan documents, including the Loan Agreement and other disclosures provided to the borrower.
The Company shall endeavour to ensure that the information displayed on the platform is accurate and updated; however, the terms and conditions contained in the applicable loan documents shall prevail in case of any inconsistency.
The customer shall be responsible for reviewing and understanding the applicable terms, conditions, and disclosures before availing any loan or service from the Company.

16
PROPRIETARY RIGHTS OF THE COMPANY

All rights, title, and interest, including intellectual property rights, in and to the Company’s name, logo, trademarks, brand elements, website, platform, and related materials shall remain the exclusive property of the Company or its respective licensors.
Nothing contained in these terms shall be construed as granting any right, title, or interest in the Company’s intellectual property to any customer or third party. The customer shall not copy, modify, misuse, or exploit any such intellectual property without prior written consent of the Company.
The customer is granted a limited right to access and use the Company’s platform and services solely for availing the services provided by the Company and in accordance with these terms.

17
TERMINATION

The Company may suspend or terminate access to its digital platform and services in the event:

  • The customer breaches any applicable terms and conditions;
  • The Company is required to do so under applicable laws or regulatory directions;
  • The Company discontinues or modifies its services or platform operations; or
  • The customer fails to fulfil obligations relating to repayment of outstanding dues.
Termination of access to the platform or services shall not affect any rights, obligations, or liabilities arising prior to such termination, including the borrower’s obligation to repay outstanding amounts due to the Company. Upon termination, the customer shall discontinue use of the platform and services, wherever applicable, while remaining responsible for all outstanding obligations under the loan agreement.

18
DISCLAIMER

The Company shall endeavour to ensure that the information provided through its digital platform is accurate, complete, and updated. However, the Company does not warrant that access to the platform or services will always be uninterrupted, timely, secure, or free from technical errors, as certain factors may be beyond the reasonable control of the Company.
The customer acknowledges that access to the platform is subject to the availability of internet connectivity, compatible devices, and other technical requirements that may be beyond the reasonable control of the Company.
The customer shall be responsible for reviewing and understanding the applicable loan terms, conditions, and disclosures before availing any services from the Company.
Nothing contained on the platform shall override or supersede the terms and conditions of the Loan Agreement or other applicable loan documents executed between the Company and the borrower.

19
INDEMNITY

The customer shall indemnify and hold harmless the Company, its directors, employees, and authorized representatives against any loss, damage, liability, claim, or expense arising out of:

  • any breach of these terms and conditions by the customer;
  • any false, inaccurate, or misleading information or documents provided by the customer;
  • any unauthorized use or misuse of the Company’s platform or services by the customer; or
  • any violation of applicable laws by the customer.
The Company shall exercise its rights under this clause in accordance with applicable laws and regulatory guidelines.

20
LIMITATION OF LIABILITY

The Company shall not be liable for any loss, damage, or liability arising due to circumstances beyond its reasonable control, including technical failures, interruptions, delays, or issues relating to internet connectivity or third-party infrastructure.
The Company shall not be responsible for any loss arising from the customer’s misuse of the platform, unauthorized access to the customer’s account, or failure to comply with applicable terms and conditions.
Nothing contained in this clause shall limit or exclude any liability of the Company arising from its obligations under applicable laws, regulatory requirements, or the Loan Agreement executed with the borrower.

21
FORCE MAJEURE

The Company shall not be liable for any delay, interruption, or inability to provide services due to events or circumstances beyond its reasonable control, including but not limited to natural disasters, acts of God, internet or network failures, telecommunications failures, power outages, system failures, changes in applicable laws or regulations, governmental actions, civil disturbances, strikes, or any other force majeure event.
The Company shall endeavour to take reasonable steps to restore the affected services as soon as practicable after the cessation of such events.

22
PRIVACY POLICY

The collection, processing, storage, and use of personal information of customers in connection with the services provided by the Company shall be governed by the Company’s Privacy Policy, as amended from time to time.
The Company shall ensure that customer data is collected, processed, and handled in accordance with applicable laws, regulatory guidelines, and the consent provided by the customer.

23
AMENDMENT OF TERMS

The Company reserves the right to modify, amend, update, or replace these terms from time to time. Any such changes shall be communicated through the Company’s platform or other appropriate channels and shall become effective from the date specified by the Company.
Continued use of the services after such changes shall constitute acceptance of the revised terms.

24
GOVERNING LAW AND JURISDICTION

These terms shall be governed by and construed in accordance with the laws of India.
Any dispute, claim, or controversy arising out of or in connection with these terms shall be subject to the jurisdiction of the competent courts in accordance with applicable laws.

25
MISCELLANEOUS

Entire Agreement: These terms, together with the Loan Agreement and Privacy Policy, constitute the entire understanding between the customer and the Company with respect to the services and supersede any prior communications or understandings relating to the same.

No Waiver: Any failure or delay by the Company in exercising any right or remedy under these terms shall not be construed as a waiver of such right or remedy.

Severability: If any provision of these terms is held to be invalid, illegal, or unenforceable, the remaining provisions shall continue to remain valid and enforceable to the extent permitted by applicable law.

Customers may report any concerns, complaints, or issues relating to these terms or the services provided by the Company through the grievance redressal channels specified in this document.