Fair Practice Codes

Ekagrata Finance Private Limited (hereafter referred to as the “Company”) is a Non-Banking Financing Company (“NBFC”) registered with the Reserve Bank of India (“RBI”). The Company was incorporated in the year 2018 with an aim to provide loans,mainly to the unbanked segments of white and blue collar employees.

The Board of Directors of the Company has approved and adopted this Fair Practices Code (“Code”) in accordance with the guidelines issued by the RBI for NBFCs to undertake fair business and corporate practices. The Company ensures that the principles of responsible lending, transparency and core values are followed by the Company in letter and spirit.

The Company will adhere to this Code to ensure (a) fair practices while dealing with its customers / borrowers (hereinafter referred to as “Customer(s)”); (b) to provide Customers with true and correct information in respect of products and services offered by the Company; (c) employees of the Company offer their services, assistance and guidance to the Customers in a fair and transparent manner.

The Company commits to abide by the following core values-

  • Customer Satisfaction
  • Empathy
  • Integrity
  • Diversity
  • Loyalty
  • Ownership

Fair Practice Codes

The Company has framed this Code in accordance with the guidelines on “Fair Practices Code” set out by the RBI. The Company hereby, set out the practices which it commits to, in the provision of services to its Customers.

1. Applications for loans and their processing

  1. All communications to the Customer of the Company shall be in the vernacular language or a language as understood by the Customer.
  2. Loan application forms shall include necessary information which affects the interest of the Customer so that a meaningful comparison with the terms and conditions offered by other NBFCs can be made and informed decisions can be taken by the Customer. The loan application form shall indicate the documents required to be submitted with the application form.
  3. The Company shall provide acknowledgement receipts for all loan applications, which shall preferably indicate the time frame within which the loan applications shall be disposed.
  4. The Company may request the prospective Customers to provide the information required in accordance with the KYC norms laid out in the regulatory requirements issued by the RBI in the loan applications. The KYC guidelines laid out in the KYC / AML Policy of the Company shall be adhered to by all Customers, and the Company may request for additional information as may be required by the Company for Customer due diligence.

2. Loan appraisal and terms & conditions

  1. Every loan has to be appraised to understand the Customer income, their current indebtedness and thereby assess their loan requirement and repayment capacity.
  2. The Company shall convey in writing to the Customer in the vernacular language or a language as understood by the Customer by means of sanction letter or otherwise, the amount of loan sanctioned along with 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 Customer on its record. The Company shall mention the penal interest charged for late repayment in bold in the loan agreement.
  3. The Company shall furnish a copy of the loan agreement, preferably in the vernacular language or in a language understood by the Customer, along with a copy each of all enclosures quoted in the loan agreement to the Customers at the time of sanction/disbursement of loans.

3. Disbursement of loans including changes in terms and conditions

  1. The Company shall give notice to the Customer in the vernacular language or a language as understood by the Customer of any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges etc. The Company shall also ensure that changes in interest rates and charges are affected only prospectively. A suitable condition in this regard shall be incorporated in the loan agreement entered into with the Customer.
  2. The decision to recall/accelerate payment or performance under the agreement shall be in consonance with the loan agreement entered into with the Customer.
  3. The Company shall release all securities on repayment of all dues or on realization of the outstanding amount of loan subject to any legitimate right or lien for any other claim the Company may have against any Customer. If such right of set-off is to be exercised, the Customer shall be given notice about the same with full particulars about the remaining claims and the conditions under which the Company is entitled to retain the securities till the relevant claim is settled/paid.

4. Confidentiality

  1. Unless authorized by the Customer, the Company shall retain all information shared by the Customer as private and confidential information and shall not reveal any details or information to any persons without consent except as may be required (a) under statutory or regulatory laws or pursuant to an order of a court or any other authority; (b) in public interest; or (c).
  2. The Company acknowledges that it has stringent policies and procedures adequate and sufficient to protect the confidential information of the Customers from unauthorized disclosure and all of its employees or representatives who are granted access to any portion of the such information, are obliged to protect the confidential and proprietary nature of the such information.

5. General

  1. The Company shall refrain from interference in the affairs of the Customer except for the purposes provided in the terms and conditions of the loan agreement (unless new information, not earlier disclosed by the Customer, has come to the notice of the Company).
  2. In case of receipt of a request from the Customer for transfer of borrowal account, the consent or otherwise i.e. objection of the Company, if any, should be conveyed within 21 (twenty-one) days from the date of receipt of the request by the Customer. Such transfer shall be as per the terms of the contract between the Company and the Customer and shall be in consonance with the laws in force from time to time.
  3. In the matter of recovery of loans, the Company shall not resort to undue harassment viz. persistently bothering the Customers at odd hours, use of muscle power for recovery of loans etc.
  4. The Company shall ensure that the staff is adequately trained to deal with the Customers in an appropriate manner.
  5. The Company shall disclose the annual rate of interest to be charged for loans and advances and has adopted appropriate internal principles and procedures in determining the rates of interest and processing and other charges in accordance with and pursuant to DNBS.PD/CC.No.95/03.05.002/2006-07 dated May 24, 2007 and shall not charge any excessive interest. For this purpose, the Company has adopted an interest rate model, as set out at [http://www.ekagratafinance.com/], updated from time to time by the Company, taking relevant factors such as costs of funds, margin and risk premium into account.
  6. The Company shall not charge foreclosure charges/ prepayment penalties on any floating rate term loan sanctioned for purposes other than business to individual borrowers, with or without co-obligant(s).

Grievance Redressal Mechanism

The Company being a financial service provider, mainly to the underserved segment of blue and white collar employees, believes that Customer-satisfaction effectively is the most important tool for its sustainable growth. This Grievance Redressal Mechanism articulates our objective to minimize instances that give rise to customer complaints and create a review mechanism to ensure consistently superior service behaviour and easy access to transparent, speedy and efficient service to all Customers of the Company.

The contact details of Customer support is prominently displayed on the website of the Company [http://www.ekagratafinance.com/contact.html], its offices and on the platform through which the Company provides its financial services.

1. The Principle

The Grievance Redressal process of the Company follows the following principles:

  1. The Customers are treated fairly at all times.
  2. All the complaints, requests, queries received from Customers are responded with courtesy and in a timely manner.
  3. The Customers are fully informed of avenues to escalate their complaints/grievances within the Company, and their rights if they are not satisfied with the resolution of their complaints/grievances.
  4. The employees of the Company work in good faith and without prejudice, towards the interests of the Customers.

2.Grievance Redressal Mechanism

Complaints by a Customer shall be responded to in the below mentioned manner and timelines. However, there may be some complaints which require deeper analysis from all possible angles which may cause delayed resolution of the complaint. In such cases, the Company will try to resolve grievances at the earliest depending on the nature of the case. Such delay in addressing the complaint beyond the prescribed time limit shall be conveyed to the complainant along with reasons for the same.

    Step 1:

    In case the Customers have any query, grievance or request, he / she can call on our helpline no. 080-47185299 or can write an email to us at support@ekagratafinance.com. The call facility is available from 10:00 a.m. to 18:00 p.m. (Monday to Friday) and 10:00 a.m to 17:00 p.m. on Saturdays, except public holidays.

    Immediate response shall be provided to the Customer depending on the nature of the grievance. The Customer will receive a response within 3 working days if not responded immediately.

    Step 2:

    If the Customer (i) feels that his / her grievances have not been addressed or (ii) is not satisfied with the resolution received from above channels, or (iii) if the Customer does not hear from us within 3 working days from the complaint raised, the Customer can write an email at grievance@ekagratafinance.com.

    Step 3:

    If the Customer is not satisfied with the resolution received from the above channels, or if the Customer does not hear within 3 working days of the Complaint raised under Step-2 , the Customer can contact the following channel:

    Nodal Officer
    Ekagrata Finance Private Limited, Nova Miller, 333 Thimmaiah road, Vasanth Nagar,
    Bangalore - 560052
    Email: nodalofficer@ekagratafinance.com .

    Step 4:

    If the Grievance is not redressed within 30 days, the Customer may refer an appeal to the Officer-in-charge of the Department of Non-Banking Supervision of the RBI at the following address:

    Reserve Bank of India
    Department of Non-Banking Supervision
    10/3/08,
    Nrupatunga Road,
    P.B.No.5470,
    Bangalore-560001
    https://www.rbi.org.in/scripts/complaints.aspx

3.Procedure of handling the customer grievances

  1. The query/request/grievance/feedback from Customers (“Communication”) may be received in writing or it can be received through our helpline number.
  2. The customer executive will record the Communication received from Customers.
  3. The customer executive will follow the standard operating procedure depending on the type of Communication received.
  4. The customer executive will attend to the Communication received from the Customer to the best of his/her ability.
  5. The Communication shall be addressed based on turnaround time, nature, ageing etc.

4.Reporting to the Board of Directors

  1. The summary of the Customer grievance report along with a status report indicating the actions taken for resolution of the Communication, shall be placed before the Board of Directors for their review on an annual basis by the Company Secretary / Compliance Officer of the Company.
  2. The report shall contain information like, the total number of complaints received, disposed off and pending, with reasons thereof, and which will be placed before the Board of Directors for information / guidance.