Fair Practice Code

Application for Loan & their 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's nearest branch
  • The application so received will be acknowledged by the Company immediately on submission and will be processed for sanction of the loan. 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 and will grant loan by issuing a sanction letter within 10 days from the date of receipt of the loan application and if no communication is received by the customer, the loan application is deemed to have been rejected and the Company will not send any communication for rejected cases.
  • Sanction letter in the vernacular language to be issued to all borrowers whose loan have been sanctioned after due diligence.

Loan Appraisal and Terms & Conditions

  • The sanction letter in the vernacular language would convey the following:
    • amount financed,
    • documents to be submitted for disbursement of the loan,
    • the annualised rate of interest
    • details of security to be offered,
    • repayment schedule
    • penal interest or delayed payment charges (in case of delay in payments of installments beyond due dates)
    • document to be executed by the guarantor and co-borrower for disbursement of loan.
    • Copy of the sanction letter will have to be accepted. The customer will have to return to the Company a copy of the sanction letter duly acknowledged by him as a token of acceptance. Thereafter Company will issue D.O. / cheque in favour of the dealer or customer as the case may be.
  • Though the existing loan agreement provides a clause for the delayed payment charges, the same is not in bold letters as suggested. Going forward, all loan agreements will mention this clause in bold letters

Disbursement of Loans, including changes in terms & conditions

  • Any 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.
  • Any decision to recall, accelerate payment would be communicated to the borrower in writing as per the terms of the agreement.
  • NOC to be issued on recovery of all dues. Collateral, if any, will be released along with the NOC. Any collateral taken to guarantee the performance of contract will be duly acknowledged and kept in safe custody. Cross holding of securities will be duly communicated in writing vide RPAD giving reference of balance exposure in other contracts.

General

  • Company will take recourse / actions only through legally permissible remedies as per the terms & conditions of loan agreement entered into with the borrower.
  • Only written request from customers for transfer of liabilities will be evaluated by the company and written confirmation / rejection will be intimated to the customer within 21 days of after due diligence.
  • 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

Grievance Redressal Mechanism

In case of any complaint / grievance, the customer can make his complaint through any of the following modes :

In case customer chooses to log his complaint through either of website and email, an email / sms will be sent to the customer, acknowledging his complaint and also informing about his complaint number and expected time of resolution.

These complaints will be received by a Nodal Customer Care Executive (through a complaint tracking module) at our Head Office in Mumbai. These complaints would be then referred to respective location and function for resolution.

In case customer chooses to log his complaint at the branch he would be requested to give complaint in writing, In case customer is not able to write then, the branch accountant will fill his details filled in a complaint sheet and provide him his unique complaint number, with expected time of resolution. These complaints will be regularly monitored by Nodal Customer Care executive to ensure effective resolution and escalation.

The company will not only ensure that all the complaints received are recorded and resolved, but also ensure effective monitoring / escalation mechanism to the senior levels responsible so as to ensure that none of the complaints remain unresolved.

All disputes arising out of the decisions of branches in relation to the products and services shall be heard and disposed off at least at the next higher level. Therefore, the following 'Grievances Redressal Mechanism' is put in place

Complaint Level Redressal Level
Branch Level Territory Level
Territory Level Regional Level
Regional Level Zonal Level
Zonal Level Head Office Level

Post resolution of the complaint, the customer will get a mail / sms confirming the resolution of the complaint. At this point customer has to confirm whether the complaint has been resolved to his satisfaction or not. The complaint will be deemed closed if customer does not respond to mail / SMS.

At all branches of the company, prominent display boards will be put up informing them, about the Grievance Redressal Officer [including the name and contact details (Telephone / Mobile nos. and also e-mail address) (Branch Accountant) responsible for logging and resolving at the branch. Also detailed information (including contact details) will be mentioned on how to escalate the matter, in case customer finds resolution inadequate. If the complaint / dispute is not redressed within a period of one month, the customer may appeal to:-

Sr.No Centre Centre Address of the Office of NBFC Ombudsman Area of Operation
1. Chennai C/o Reserve Bank of India Fort Glacis, Chennai 600 001 STD Code: 044 Tel No. 25395964 Fax No. 25395488 Email: [email protected] Tamil Nadu, Andaman and Nicobar Islands, Karnataka, Andhra Pradesh, Telangana, Kerala, Union Territory of Lakshadweep and Union Territory of Puducherry
2. Mumbai C/o Reserve Bank of India, RBI Byculla Office Building, Opp. Mumbai Central Railway Station, Byculla, Mumbai-400 008 STD Code: 022 Tel No. 2300 1280 Fax No. 23022024 Email: [email protected] Maharashtra, Goa, Gujarat, Madhya Pradesh, Chhattisgarh, Union Territories of Dadra and Nagar Haveli, Daman and Diu
3. New Delhi C/o Reserve Bank of India Sansad Marg, New Delhi - 110001 STD Code: 011 Tel. No. 23724856 Fax No. 23725218-19 Email: [email protected] Delhi, Uttar Pradesh, Uttarakhand, Haryana, Punjab, Union Territory of Chandigarh Himachal Pradesh, and Rajasthan and State of Jammu and Kashmir
4. Kolkata C/o Reserve Bank of India 15, Netaji Subhash Road, Kolkata-700001 STD Code: 033 Tel. No. 22304982 Fax No. 22305899 Email: [email protected] West Bengal, Sikkim, Odisha, Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Bihar and Jharkhand

The customer complaint process and grievance redressal policy will be reviewed at regular intervals.

Complaints about excessive interest charged by NBFCs

The Company charges interest only as per the terms of the contract. The terms of the contract are clearly mentioned in the sanction letter as well as the loan agreement and any delay in payment of installments as per the repayment schedule will attract penal interest at the rate of 3% per month from the due date till the date of payment of the installment. This rate of interest is fixed to act as a deterrent to the customer in delaying the payment of the installment.

Regulation of excessive interest rates charged by NBFCs

Please refer our Policy on 'Interest rate and gradation of risk'

Repossession of vehicles financed

The Company adopts due legal process as detailed below for repossession of vehicles financed. The clause which is incorporated in the loan agreement has been reproduced below.

“Consequences upon event of default:

Upon occurrence of any event of default and any time thereafter, the Lender shall without prejudice to its rights in law, be entitled to take custody of hypothecated Asset on notice, to declare  all sums due and to become due hereunder for the full term of agreement  including  foreclosure charges calculated at the rate of 3 % on the  Principal outstanding, along with other dues including unpaid instalments , Service taxes , late charges etc as due and payable by giving 10 days notice  and upon such demand if the Borrower fails to make the said payment in full within 10 days thereof, Lender  shall have the right  to do any or all of the following :

  • To take custody of hypothecated asset on notice with inventory and on such notice, Borrower shall hand over hypothecated asset peacefully to the Lender after obtaining copy of the inventory.
  • To value the asset and take steps to sell the hypothecated asset, on ‘as is where is’ condition after giving another notice proving an opportunity for the Borrower to pay the dues. On payments of dues by the Borrower , hypothecated Asset taken into custody by the Lender shall be handed over to the Borrower and in case Borrowers fails  to respond to  such notice  , Lender shall sell the hypothecated asset in private or  public auction or by  inviting tenders or quotes  as deemed fit , adjust the sale consideration towards dues payable by Borrower and  for balance  if any  payable,  shall proceed further to recover and shall take all reasonable precaution and  prudent measures to comply with all rules and  regulations.
  • Exercise any other right or remedy which may be available to Lender under the applicable law.

However, in the event of the Lender apprehending that the Borrower is likely to put the Asset for illegal use or deteriorating the condition of the Asset or concealing or disposing to any third party,  jeopardizing the security of the Lender and also the prospects of recovery of Loan, under such circumstances Lender shall take custody of Asset without any notice period .

It is agreed and understood by the Borrower (s) that the right of the Lender to recover the amount payable and/or repayable or reimbursable to the satisfaction of the Lender shall survive any such Cancellation of Loan and/or termination of the Agreement as the case may be . The Lender shall be entitled to take all or any of the steps to recover the dues payable by the Borrower and shall have unqualified right to disclose or publish Borrower’s default in  such manner and through such medium as the Lender may in its absolute discretion may deem fit.”

Get in Touch

Mahindra & Mahindra Financial Services Limited
4th Floor, Mahindra Towers,
Dr. G.M. Bhosale Marg,
P.K. Kurne Chowk, Worli,
Mumbai 400 018.

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Loan Amount
Tenure In Months
Rate of Interest %
Principal: 75 %
Interest Payable: 25 %

For illustration purpose only

Total Amount Payable

50000

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