Fair Practices Code

This Code has been developed to:

• promote good, fair and trustworthy practices by setting minimum standards in dealing with the customers;
• increase transparency to enable the customers to have a better understanding of what they can reasonably expect of the services;
• promote a fair and cordial relationship between the customers and the Company.

a. Act efficiently, fairly and diligently in our dealings with all our customers by:

• Meeting the commitments and standards specified in the Code for the products and services which the Company offers and in the procedures and practices its staff follows;
• Making sure that Company’s products and services meet relevant laws and regulations;
• Providing professional, courteous and speedy services;
• Providing accurate and timely disclosure of terms and conditions, costs, rights and liabilities as regards financial transactions.

b. Help customers understand how company’s product work by:

• Explaining their financial implications

c. Deal quickly and sympathetically with things that go wrong by:

• Correcting mistakes;
• Handling customer’s complaints;
• Telling customers’ how to take their complaint forward if they are still not satisfied.

d. Not to discriminate the borrower on the basis of religion, caste, sex, descent or any of them.

• The Company shall have a loan application form in physical/ digital mode for all the products offered to its customers depending upon the nature of the product. Loan application forms would include necessary information of the customers, features of the product and the documents required to be submitted for loan processing.
• Customers who have evinced interest in availing the loan from MMFSL should fill up the loan application form, complete in all aspects and should submit the same to the Company, duly signed.
• The Company will have a system of giving acknowledgement for receipt of loan applications either through physical mode or digital mode like SMS, Email Id, etc. The time frame within which loan applications will be disposed of will be indicated in the acknowledgement.
• The Loan Application Form shall be in a vernacular language or language as understood by the customer.

• The Company will consider all the documents submitted and the information provided, verify the creditworthiness of the customer and evaluate the proposal at its sole discretion. In case any additional information or documents are required the company will convey the same to the customer within a reasonable time.
• After necessary assessment, the Company will convey in writing in physical/digital mode to the borrower, in vernacular language of language as understood by the borrower, by means of an offer letter or any other mode, the amount of loan approved along with the terms and conditions, including the annualised rate of interest thereof. It would keep the acceptance of these terms and conditions by the borrower on the Company’s files in digital (including OTP based) or physical mode as applicable.
• The Company will mention the penal interest charged for late repayment in bold in the loan agreement.
• The Company will furnish a copy of the loan agreement along with a copy each of all enclosures quoted in the loan agreement to all the borrowers at the time of sanction/disbursement of loans.

• Penalty, if charged, for non-compliance of material terms and conditions of loan contract by the borrower shall be treated as ‘penal charges’ and shall not be levied in the form of ‘penal interest’ that is added to the rate of interest charged on the advances. There shall be no capitalisation of penal charges i.e., no further interest computed on such charges.
• The Company shall not introduce any additional component to the rate of interest and ensure compliance to these guidelines in both letter and spirit.
• The quantum of penal charges shall be reasonable and commensurate with the noncompliance of material terms and conditions of loan contract without being discriminatory within a particular loan/product category.
• The penal charges in case of loans sanctioned to ‘individual borrowers, for purposes other than business’, shall not be higher than the penal charges to non-individual borrowers for similar non-compliance of material terms and conditions.
• The quantum and reason for penal charges shall be clearly disclosed by the Company to the customers in the loan agreement and most important terms & conditions/Key Fact Statement (KFS) as, in addition to being displayed on the website of the Company under Interest rates and Service Charges.
• Whenever reminders for non-compliance of material terms and conditions of loan are sent to borrowers, the penal charges shall be communicated. Further, any instance of levy of penal charges and the reason therefor shall also be communicated.

• AAny change in terms of Conditions like change in interest rate, tenure, all charges/fees would be communicated to the borrower in writing in the vernacular language or a language as understood by the borrower. Any changes in interest rates and charges will be effective only prospectively.
• Any decision to recall, accelerate payment would be communicated to the borrower in writing as per the terms of the agreement.
• No Due Certificate shall be issued on recovery of all dues. Collateral, if any, will be released along with the No Due Certificate. Any collateral taken to guarantee the performance of contract will be duly acknowledged and kept in safe custody.

• All communications to the borrower shall be in vernacular language or in a language as understood by the borrower.
• The Company will take recourse / actions only through legally permissible remedies as per the terms & conditions of loan agreement entered into with the borrower.
• The Company shall refrain from interference in the affairs of the borrower except for the purposes provided in the terms and conditions of the loan agreement (unless information, not earlier disclosed by the borrower, has been noticed).
• 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, shall be conveyed within 21 days from the date of receipt of request. Such transfer shall be as per transparent contractual terms in consonance with law.
• Any agency to whom various activities are outsourced/entrusted will have to be short listed and empanelled as per the company policies issued from time to time.
• The Company has an exclusive recovery team who are specialized in handling collection activity in a professional manner by adopting a due legal process as per the law of the land. Since it is a specialized function, the quality is addressed at the recruitment level itself.
• In the matter of recovery of loans, the Company shall not resort to any harassment – such as persistently bothering the borrowers at odd hours (before 8:00 a.m. and after 7:00 Page 6 of 8 p.m.), use of muscle power for recovery of loans, etc. Further, the employee/agents will be adequately trained to deal with the customers in an appropriate manner
• The Company has adopted an interest rate model taking into account relevant factors such as, cost of funds, margin and risk premium, etc. to determine the rate of interest to be charged for loans and advances and ensuring that the interest rate is not excessive. The Company shall, at the time of disbursal, ensure that the interest rate on loan and advances are in strict adherence to the interest rate model adopted by the Company. The rate of interest and the approach for gradations of risk and rationale for charging different rate of interest to different categories of borrowers will be disclosed to the borrower in Application Form, Offer letter and on the website of the Company.
• The Company will not charge foreclosure charges/ pre-payment penalties on any floating rate term loan sanctioned for purposes other than business to individual borrowers, with or without co-obligant(s).
• All loan application will be given an acknowledgment with a time frame within which it will be disposed.
• No Objection Certificate, wherever applicable would be issued within 15 working days subject to the availability of the customer.
• For all loans, wherever applicable, charge would be released within 30 working days from the date of closure/settlement of the loan account.

The Company has laid down an appropriate grievance redressal mechanism within the organization to resolve disputes arising in this regard.

The Company shall display the following information prominently, for the benefit of its customers, at its branches / places where business is transacted:

• The name and contact details (Telephone / Mobile no. and email address) of the Grievance Redressal Officer/ Principal Nodal Officer who can be approached by the public for resolution of complaints against the Company.
• Reserve Bank – Integrated Ombudsman Scheme, 2021 (‘Scheme’)
• Salient features of the Scheme in English, Hindi and the regional language
• If the complaint / dispute is not redressed within a period of one month, the customer may appeal to the Reserve Bank of India through the complaint lodging portal: https://cms.rbi.org.in.
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