Application for loan and processing
  1. All communication to the borrower shall be in vernacular language or a language understood by the borrower
  2. The loan application form shall have all necessary information
  3. Loan application shall be acknowledged
Loan application
  1. Loan sanctioned along with the terms and condition shall be informed to the borrower
  2. Penal interest to be charged shall be informed to the borrower
  3. Copy of the loan agreement shall be furnished to be borrower
  4. Decision to recall shall be is consonance with the loan agreement
  5. Securities taken shall be repaid upon realisation of the outstanding
  1. Company should refrain from interfering in the affairs of the borrower
  2. ) Request for transfer of borrower account from one branch to another of the choice of the borrower should be acted upon and conveyed within 21 days
  3. In the matter of recovery of loans, company should strictly adhere to the norms as prescribed by the regulators and should not resort to undue harassments
  4. Grievance redressal   mechanism shall be put in place.
  5. Fair practices code shall be put up in the website
Regulation of excessive interest
  1. Interest shall be fixed taking into consideration factors such as  cost of funds, risk premium and margin
  2. Borrower should be aware of the exact rates.
  3. Generally only employees and not outsourced agents be used for recovery
  4. In the case of Gold loan, the loan agreement shall also disclose details       regarding auction procedure

Gold Loan Auction Process.

  1. Registered notice will be sent to the borrowers for redeeming the pledged gold ornaments after completion of 12 months or if the market value of the gold falls below the amount recoverable with interest, whichever is earlier.
  2. The distinctive Gold Loan accounts numbers will be published in a news paper.
  3. Auctions will be conducted in specific centers and amount collected will be so appropriated to square off the company’s receivables; together with cost of registered notices, paper publication charges GST etc.
  4. Excess amount if any will be paid back to the borrower by way of crossed cheques.
  5. In case the borrower is not traced within 6 months, the amount will be transferred to an Escrow account and will be settled as and when claim arises.