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Fair Practice Code

This has reference to RBI Circular No. 2012-13/416/DNBS. CC. PD No. 320 /03.10.01/2012-13 dated 18th February, 2013, wherein the Reserve Bank of India (RBI) has revised the guidelines on Fair Practices Code for NBFCs to implement the same.


The Fair Practices Code, as mentioned herein below, is in conformity with these Guidelines on Fair Practices Code for NBFCs as contained in the aforesaid RBI Circular. This sets minimum Fair Practice standards for the Company to follow when dealing with customers. It provides information to customers and explains how the Company is expected to deal with them on a day to day basis.


This policy applies to all customers including those with any complaints / enquiries as posted on social / any other media and we encourage all customers to reach out to the below platforms as required.

Objective of the Code

The code has been developed with an objective of:
  • Ensuring fair practices while dealing with customers
  • Greater transparency enabling customers in having a better understanding of the product and taking informed decisions
  • Building customer confidence in the company

Applications for Loans and their processing

  • The Company offers various financial products including Loan against securities, Loans against Commodities and Personal Loans among others. The below clause however will apply wherein the borrower is an individual and who would requires assistance as compared to mid-large corporate clients who are well versed and equipped with financial market business.
  • The ‘Application Form / appropriate documents’ for each of these products offered by the Company is different depending upon the requirement of each product and will include all information that is required to be submitted by the Borrower. Necessary information will be provided by the company to facilitate the Borrower in making a meaningful comparison with similar terms and conditions offered by other Non Banking Finance Companies (NBFCs) and taking an informed decision based on the aforesaid comparison.
  • The ‘Application Form/ appropriate documents’ shall indicate the list of documents required to be submitted by the Borrowers along with the Application form.
  • The company shall inform the Borrower about its decision within reasonable period of time from the date of receipt of all the required information in full.

Loan appraisal and terms/conditions

The company shall convey in writing to the Borrower by way of a sanction letter or otherwise, the amount of limit sanctioned along with all the terms and conditions including annualized rate of interest and method of application thereof and keep the acceptance of these terms and conditions by the borrower on record. Any clause relating to penal interest charged for late repayment will be specified in bold in the Loan Agreement. The company will furnish a copy of loan agreement to the borrower at the time of sanction / disbursements of loans.

Disbursement of loans including changes in terms and conditions

  • Through its published website or through email or as appropriate if specific to a customer, the company will give Notice to its Borrower(s), of any change in the terms and conditions of the sanction. The company will also ensure that changes in interest rates and charges are effected only prospectively.
  • Decision to recall/ accelerate payment or performance under the Agreement will be in consonance with the respective loan Agreement.
  • The company will release all securities of its Borrower only on repayment of all dues by such Borrower, or only on realization of the outstanding amount of the Borrower’s availed limit, subject to any legitimate right or lien for any other claim which the company may have against its Borrower. If such right of set off is to be exercised, the Borrower will be given notice about the same with full particulars about the remaining claims and conditions under which the company will be entitled to retain the securities till the relevant claim is settled or paid by the Borrower. Due No-objection certificate will be issued to the customer on fulfillment of said terms within 15 workings days of completion of formalities.

Regulation of Excessive Interest

  • The Company has laid down appropriate internal principles and procedures in determining interest rates and processing and other charges.
  • The Company has adopted an interest rate model taking into account cost of funds, margin and risk premium for determining rate of interest to be charged for loans and advances.
  • The rate of interest to be charged depends much upon the gradation of the risk of borrower viz. the financial strength, business, regulatory environment affecting the business, competition, past history of the borrower etc. The rate of interest will be annualised so that the borrower is aware of the exact rates that would be charged to the account.

General

  • The company will refrain from interference in the affairs of its Borrower except for the purposes provided in the terms and conditions of the respective loan agreement (unless new information, not earlier disclosed by the Borrower, which may come to the notice of the company).
  • In case of receipt of request from the Borrower for transfer of Borrowal account, the consent or otherwise i.e. objection , if any, is generally conveyed to such Borrower within 21 days from the date of receipt of the Borrower’s request. Such transfer will be as per transparent contractual terms in consonance with all the applicable laws.
  • In the matter of recovery of outstanding dues of its Borrower, the company shall not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans/dues, etc. Training will be imparted to ensure that staff is adequately trained to deal with customers in an appropriate manner.

Grievance Redressal Mechanism

In the present competitive scenario, excellent customer service is an important tool for sustained business growth. Customer complaints are part of the business life in any corporate entity. Effective resolution is a key differentiator in the competitive business environment.

Customer service and satisfaction are our prime focus. We believe that providing prompt and efficient service is essential not only to attract new customers, but also to retain existing ones. The company shall device an efficient complaints redressal mechanism with a view to providing enhanced experience to our customers.

In order to make grievance redressal mechanism more meaningful and effective, a Borrowers Grievances Redressal Authority has been constituted as enumerated below.

BORROWERS’ GRIEVANCES REDRESSAL AUTHORITY- BOGRA

Customers may take up disputes arising out of the lending decisions/ conduct of the company as follows.
  • First level
    Grievance Redressal Officer : Head – Geojit Credits Pvt Ltd
  • Second level
    In case the grievance persists, the customer may escalate the issue to the Managing Director of the Company. A committee consisting of Managing Director and Head of Geojit Credits Pvt Ltd shall then examine and resolve the issue.
  • Contact details

    The Grievance Redressal Officer,
    Geojit Credits Pvt Ltd
    Address: 34/659-P, Civil Line Road, Padivattom, Kochi – 682024
    Email: grievances@geojitcredits.com
    Ph: 0484 2901252.

    In case the complaint/dispute is not satisfactorily redressed within a period of one month, the customer may appeal to Officer in charge of the Regional Office of RBI at the following address.

    The General Manager,
    Department of Non Banking Supervsion,
    Reserve Bank of India, Bakery Junction,
    P.B No.6507, Thiruvananthapuram-695 033
    Ph: 0471- 2329676/ 2338818

    The compliance of these shall be reviewed once in a half-year viz., as at the end of March and September every year.

    The Company shall place the above Fair Practices Code on its website, for the information of various stake holders. The GCPL Fair Practice Code for Lending is liable for modifications and amendments, subject to directives received from RBI from time to time. Fair practices shall be adopted both in letter and spirit in all lending activities of the Company.