Fair Practice Code
FAIR PRACTICE CODE
In the presence of the revised guidelines on FPC issued by the Reserve Bank of India to all Non-Banking Finance companies(NBFCs), Kapil Capital Services Pvt. Ltd. an NBFC, has formulated its FPC which inter-alia, covers principles 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 Kapil Capital Services Pvt. Ltd. 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.
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, Kapil Capital Services Pvt. Ltd. assesses the economic viability of the proposal submitted by the client.
- Loan application of Kapil Capital Services Pvt. Ltd. includes necessary information that 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.
- Kapil Capital Services Pvt. Ltd. provides acknowledgment to the prospective borrower for receipt of loan application. The time frame within which the loan application will be disposed of is mentioned in such acknowledgment
Loan Appraisal and Terms/ Conditions:
- Kapil Capital Services Pvt. Ltd. conveys in writing to the prospective borrower the fate of the loan application by means of a sanction letter or otherwise. In the case of sanction of a loan, the sanction letter contains the amount of loan sanctioned and terms and conditions including annualized rate of interest and method of application thereof.
- The acceptance of the terms and conditions communicated by the borrower is preserved by Kapil Capital Services Pvt. Ltd. in its records and a copy of the same is also provided to the borrower.
- Kapil Capital Services Pvt. Ltd. mentions the rate and time when the penal interest is charged, if any, as per the Board’s decision for late payment in bold in the sanction letter and loan agreement.
- Kapil Capital Services Pvt. Ltd. furnishes a copy of the loan agreement along with a copy of each of the enclosures quoted in the loan agreement to all clients at the time of disbursement of the loan.
Disbursement of loans including changes in terms and conditions:
- Kapil Capital Services Pvt. Ltd. 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.
- Kapil Capital Services Pvt. Ltd. shall release all securities upon repayment of all dues or on the realization 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.
Genral:
- Kapil Capital Services Pvt. Ltd. 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 a request from the borrower for transfer of a borrower account to another NBFC, bank, or financial institution, the consent or otherwise of Kapil Capital Services Pvt. Ltd. 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, Kapil Capital Services Pvt. Ltd. shall resort only to remedies that 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.
- Kapil Capital Services Pvt. Ltd. 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 an annualized basis for loans and advances and the same is disclosed to the borrower in the loan application form and also disseminated on the website of the company.