Fair Practices Code

1. We shall have a practice to show Loan/ Loan cum Hypothecation Agreement (hereinafter referred to as "Agreement") to be signed by the Applicant/Customer along with the Loan Application Form containing the terms and conditions of the loan, well before the loan is sanctioned. Furthermore, the contents of the aforesaid Application / Agreement (though in English) shall be read out, explained and interpreted to the Borrower(s) and his Guarantor(s) in the language understood by them and they shall also be provided with a copy of the Application/Agreement in their vernacular language (Hindi) for understanding. This shall enable the Borrower(s) and Guarantor(s) to easily understand the entire transaction and enable them to make a meaningful comparison with the terms and conditions offered by the other NBFCs. The application form shall indicate the documents required to be submitted with it.
2. The Company shall give acknowledgement for receipt of all applications for financial assistance indicating the time within which the application will be accepted/ rejected.
3. Any communication/correspondence including that for the sanctioning of the loan or otherwise shall be explained to the Borrower(s) and the Guarantor(s), in English or in their vernacular language (Hindi) or in the language understood by them.

The Company shall convey in writing to the Borrower(s) all the terms and conditions including the financial details of the facility provided to the Borrower(s) by providing a copy of the Agreement (along with a copy of all the enclosures quoted in the Loan Agreement) executed by the Borrower(s) on the day of execution itself. Necessary details like amount of loan sanctioned, processing fee, if any, annualized rate of interest along with its method of application thereof, delayed payment interest etc. are all part of the Agreement. The Agreement, as mentioned above, shall be read out, explained and interpreted to the Borrower(s) and the Guarantor(s) in English or in their vernacular language (Hindi) or the language understood by them. The Company shall take a written acknowledgement of the receipt of the Agreement from the Borrower(s) and the Guarantor(s) thereby indicating the acceptance of all the terms & conditions by them.

1. Though the Company never changes any interest rates and charges etc. (as given in the Agreement) with retrospective effect except for statutory taxes, duties, and levies, still it shall give notice to the Borrower(s) and Guarantor(s) in English or in their vernacular language or a language as understood by them of any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges etc., wherever required.
2. Any decision to recall / accelerate payment or performance under the Agreement shall be in consonance with the Loan Agreement executed with the Borrower(s) and Guarantor(s).
3. The company shall release, in compliance with the RBI guidelines contained in circular dated 13th September 2023 all the original movable / immovable property documents and remove charges registered with any registry within a period of 30 days, on receipt of all dues as per the terms & conditions of the Agreement executed with the Borrower(s) and Guarantor(s) subject to any legitimate right or lien for any other claim that the company may have against the Borrower(s) and Guarantor(s). If such right of set off is sought to be exercised by the Company, the Borrower(s) and Guarantor(s) shall be given notice about the same with full particulars about the remaining claim(s) and the conditions under which the Company is entitled to retain the securities till the relevant claims are settled/ paid by the Borrower(s) and Guarantor(s).

1. The company shall refrain from interference in the affairs of the Borrower(s) and Guarantor(s) except for the purposes provided in the terms and conditions of the Loan Agreement (unless information, not earlier disclosed by the Borrower(s) and Guarantor(s) has been noticed).
2. In case of receipt of request from the Borrower(s) for transfer of borrowal account, the company’s consent or objection shall be conveyed to the Borrower(s) within 21 days from the day of receipt of such request. Such transfer shall be as per transparent contractual terms in consonance with law.
3. In the matter of recovery of Loans, the Company shall not resort to undue harassment viz; persistently bothering the borrowers at odd hours, use muscle power for recovery of loans etc. The staff of the Company shall be specifically asked to shun from any rude behavior with the customers and the Company. The Company shall ensure that the staff are adequately trained to deal with the customers in an appropriate manner and sensitize them about the need for fair conduct with the customers at all stages of their dealings. The Company shall use only non-coercive measures of recovery.
4. Though the Company does not sanction any loans on floating rate of interest still as a measure of customer protection, it shall not charge foreclosure charges/ pre-payment penalties on any floating rate term loans sanctioned for purposes other than business to individual borrower(s) with or without guarantor(s).
5. In compliance to the Notification DOR.ORG.REC.65/21.04.158/2022-23 dated August 12, 2022 issued by RBI, though the Company has not outsourced any financial services like employing recovery agents, etc. still, it shall be strictly ensured that the Company or its agents do not resort to intimidation or harassment of any kind, either verbal or physical, against any person in their debt collection efforts, including acts intended to humiliate publicly or intrude upon the privacy of the debtors' family members, referees and friends, sending inappropriate messages either on mobile or through social media, making threatening and/ or anonymous calls, persistently calling (for example- calling repeatedly) the borrower and/ or calling the borrower before 8:00 a.m. and after 7:00 p.m. for recovery of overdue loans, making false and misleading representations, etc.

Grievances/ Disputes, if any with the compliance to the Fair Practices Code by the staff members of the company, may be addressed to COO of the Company (duly authorized by the Board of Directors) at the Company’s registered office or by email to bansalcredits@gmail.com. He shall periodically report to the Board of Directors who shall then review the compliance to the Fair Practices Code and the functioning of the Grievances Redressal Mechanism on quarterly basis."

1. The name and contact details (Telephone / Mobile nos. as also email address) of the Grievance Redressal Officer who can be approached by the public for resolution of complaints against the Company. The name and contact details of the Grievance Redressal Officer of the Company are as follows:
   • Name: Mr. Baljit Singh Kohli
   • Designation: Chief Operating Officer (COO)
   • Contact details:
   • Mobile No.: 9810363772
   • Telephone No.: 011-23242127-30
   • Email address: bansalcredits@gmail.com
2. If the complaint/ dispute is not redressed within a period of one month, or if the customer is not satisfied with the resolution, the customer may
   • Escalate to the Director Finance at the same given address and such a complaint shall be dealt with within next 15 days; or
   • Appeal to the Officer-in-Charge of the Regional Office of Department of Supervision of RBI (Department of Supervision, RBI, 6, Sansad Marg, New Delhi-110001), under whose jurisdiction the registered office of the Company falls; or
   • Lodge a complaint with the Ombudsman appointed by RBI, as per the Integrated Ombudsman Scheme, 2021, as per link https://cms.rbi.org.in

1. Reserve Bank- Integrated Ombudsman Scheme, 2021

   The Company being a Deposit taking Asset Finance Company is covered under the Reserve Bank- Integrated Ombudsman Scheme, 2021 and has thus appointed a Principal Nodal Officer in accordance with the directions provided under the said Scheme. His contact details are given below:

   • Mr. Baljit Singh Kohli (COO)
   • Mobile No.: 9810363772
   • Telephone No.: 011-23242127-30
   • Email address: bansalcredits@gmail.com

Fair Practices Code adopted by the Company based on the directions given by RBI shall be framed, apart from English language, in the vernacular language i.e. Hindi also. It shall be read out, explained and interpreted to the Borrower(s) and Guarantors(s) whenever one so desires. Since the Company does not have a website of its own, it will display the Fair Practices Code on its Notice Board and supply a copy of the Fair Practices Code whenever a customer wishes to have one.

The Company shall adopt an Interest Rate Model taking into account relevant factors such as cost of funds, margin and risk premium, etc. and then determine the rate of interest to be charged for Loans and Advances to be sanctioned/ granted by it. Since the Company is primarily into Commercial Vehicle Financing, it does not need to do much risk gradation. As has been mentioned at Para no. 2, it shall supply a copy of the Loan Agreement to the Borrower with all the details like amount of Loan sanctioned, annualized rate of interest etc. mentioned in it.

The Company has and shall continue to charge a minimum reasonable rate of interest based on the general market practice. The company has internal controls by which it regulates interest rates charged on its lending transactions at reasonable and acceptable levels confirming to normal financial practices.

The Company has and shall have a built in "repossession clause" in the Loan Agreement with the Borrower which is legally enforceable. To ensure transparency, the terms and conditions of the Loan Agreement shall contain the provisions regarding:

1. Notice period before taking possession;
2. Circumstances under which the notice period can be waived;
3. The procedure for taking possession of the security;
4. A provision regarding final chance to be given to the borrower for repayment of Loan before the sale/ auction of the property;
5. The procedure for giving repossession to the borrower; and
6. The procedure for sale / auction of the property.

As has been mentioned in Para No. 2 above, the Company shall invariably furnish a copy of the Loan Agreement, along with a copy of the enclosures, if any, to the Borrower at the time of sanction / disbursement of the loan.