In compliance with RBI Circular No. RBI/2006-07/138 DNBS (PD) CC No. 80/03.10.042/2005-06 dated September 28, 2006, Sahara India Financial Corporation Limited shall follow the following guidelines on Fair Practices Code applicable to Residuary Non Banking Companies :
1. Application for loans and their processing.
a). Loan Applications Form, duly filled in, by giving all particulars as required and signed by the borrower/depositor alongwith the evidences of his deposit with Sahara India Financial Corporation Limited, shall be submitted to the Office/Service Centre of the Company.
b).After preliminary investigations made by the Office/Service Centre, the application form shall be sent to the Command Office of Sahara India Financial Corporation Limited with a request to issue advice for disbursement of loan in the name of applicant against his deposit with the Company under saving schemes being run by the Company.
2. Loan appraisal and terms/conditions.
All loan applications received from the borrowers against their deposit with the Company, shall be appraised by the Company at Service Centre and after verifications of relevant information and thereafter the advice of loan shall be issued to the respective Office/Service Centre as per the terms and conditions of the loan, prescribed in each saving schemes run by the Company against the applicants' request received by the Head Office for grant of loan.
3. Disbursement of loans including changes in the terms and conditions.
Sahara India Financial Corporation Limited shall give notice to its depositors, of any change in the terms and conditions as regard to disbursement of loan against the deposit including interest rates/service charges or any other kind of charges etc. by displaying such terms and conditions on the notice board of the Office/Service Centre of the Company. Such revised terms and conditions shall also be incorporated in the Contract Form, between the depositor and the company, on and after the date from which such changes are made effective by the Company.
Company shall take all steps for processing and disbursement of loan application form in minimum time frame and accordingly systems shall be implemented by the Company. The Company shall make charge on the deposit made by the borrower and the same shall be released, on re-payment of loan alongwith interest. In case of the depositor who does not turned up on the date of maturity, for settlement of his account, the account wherein the loan amount and interest accrued thereon exceeds with his proposal amount and interest accrued, such account shall be treated as paid as per the directions of RBI vide letter No. DNBS (PD) No. 1726/04.06/98-99 dated March 30, 1999.
a). SIFCL will refrain from interference in the affairs of the borrower for the purposes provided in the terms and conditions of the loan agreement (unless new information, not earlier disclosed by the borrower, has come to the notice of the lender).
b). In case of receipt of request from the borrower for transfer of borrowal account, the consent or otherwise i.e. objection of the Company, if any, will be conveyed within 21 days from the date of receipt of request, to the concerned borrowers. Such transfer will be as per the transparent contractual terms in consonance with law.
c). In the matter of recovery of loans, the Company will not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans etc.
Any complaint/grievance/disputes received from the depositors in connection with secured loan against deposit, shall be heard at the Command/Registered Office of the Company at Sahara India Bhawan, 1, Kapoorthala Complex, Lucknow – 226024 by Shri D.K. Srivastava, Executive Director – Parabanking in consultation with the Office/Service Centre through which the loan was disbursed.