(I) Applications for loans and their processing
- PIIC official language for all communications with in the Company or with third parties shall be English.
- All communications to the borrower shall be in English or in vernacular language / the language as understood and confirmed by the borrower.
- PIIC will take a confirmation from the prospective borrower that all communications with the borrower shall be in English or in vernacular language / the language as understood by the borrower.
- Loan applications of PIIC will include necessary information which affects the interest of the borrower, so that a meaningful comparison with the terms and conditions offered by other NBFCs can be made and informed decision can be taken by the borrower.
- The documents required to be submitted with the loan application including KYC documents will be informed to the borrower separately.
- PIIC shall provide to the prospective borrower an acknowledgement for receipt of all loan applications. The time frame within which loan applications will be disposed of will be indicated in the acknowledgement.
( II) Loan appraisal and terms/conditions
- PIIC shall convey in writing to the borrower in English or in vernacular language / the language as understood and confirmed by the borrower, the fate of the loan application by means of sanction letter or otherwise. In case of sanction of loan, the sanction letter shall contain the amount of loan sanctioned along with the terms and conditions including annualized rate of interest and method of application thereof.
- The acceptance of the terms and conditions communicated by the borrower shall be persevered by PIIC on its record and copy of same shall be provided to the borrower upon its request.
- PIIC shall mention the penal interest charged for late repayment in bold in the sanction letter and loan agreement.
- PIIC will invariable furnish a copy of loan agreement alongwith a copy of each enclosures quoted in the loan agreement to all clients at the time to sanction/disbursement of loan in English or in vernacular language / the language as understood by the borrower.
(III) Disbursement of loans including changes in terms and conditions
- PIIC shall give notice to the borrower in English or in vernacular language / the language as understood by the borrower, of any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges etc. Changes in interest rates and charges shall be effected prospectively and a suitable condition in this regard shall be incorporated in the loan agreement.
- Decision to recall / accelerate payment or performance under the agreement shall be in consonance with the loan agreement.
- PIIC 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 PIIC may have against borrower. If such right of set off is to be exercised, the borrower shall be given notice about the same with full particulars about the remaining claims and the conditions under which PIIC are entitled to retain the securities till the relevant claim is settled/paid.
- PIIC will refrain from interference in the affairs of the borrower except 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 its notice.
- In case of receipt of request from borrower for transfer of borrowal account, the consent or otherwise i. e. objection of PIIC, if any, should be conveyed within 21 days from the date of receipt of request. Such transfer shall be as per contractual terms entered into with the borrower and in consonance with status, rules, regulations and guidelines as may be applicable from time to time.
- In the matter of recovery of loans, PIIC shall resort only to remedies which are legally and legitimately available to it and will not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans etc.
- PIIC shall ensure that the staff is adequately trained to deal with the customers in an appropriate manner.
- Pursuant to notification no. DNBS.204/CGM (ASR)-2009 dated 2 January 2009 in respect to regulation of excessive interest charged by NBFCs, PIIC has adopted an Interest Rate Policy 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 same is published and disseminated on the web-site of the Company.
- As a measure of customer protection and also in order to bring in uniformity with regard to prepayment of various loans by borrowers of Banks and NBFCs, PIIC shall not charge foreclosure charges/pre-payment penalties on all floating term loans sanctioned to individual buyers.
(V) Grievance Redressal Mechanism
A Grievance Redressal Committee comprising of two members is constituted to resolve all disputes arising in this regard. Grievance Redressal Committee shall ensure that all disputes arising out of the decisions of lending institutions’ functionaries are heard and disposed of at least at the next higher level.
(VI) Periodic Review
The Board of Directors of PIIC shall periodically review the compliance of the Fair Practices Code and the functioning of the Grievances Redressal Committee. A consolidated report of such reviews may be submitted to the Board at regular intervals, as may be prescribed by it.