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-
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
All communications to the Customer of the Company shall be in the vernacular
language or a language as understood by the Customer.
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.
The Company shall provide acknowledgement receipts for all loan applications, which
shall preferably indicate the time frame within which the loan applications shall be
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
Every loan has to be appraised to understand the Customer income, their current
indebtedness and thereby assess their loan requirement and repayment capacity.
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.
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
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.
The decision to recall/accelerate payment or performance under the agreement shall
be in consonance with the loan agreement entered into with the Customer.
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.
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).
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.
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
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.
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.
The Company shall ensure that the staff is adequately trained to deal with the
Customers in an appropriate manner.
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.
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).