Fair Practices Code Policy

1. Introduction


Sanctity YTT Agro Solution Pvt. Ltd. [“Company”], a  company incorporated under the Companies Act, 2013 having its registered office at BG 33 Unitech Arcadia Sec 49 Gurgaon Haryana India 122018, Iis presently in the business of offering various kinds of financial products and services to its customers. The code will facilitate the customers to take informed decisions in respect of the financial products and services to be availed by them from the Company and will apply to all loan that the Company may sanction and disburse. 


The standards set out in this policy are minimum requirements based on applicable legal and regulatory requirements as issued by Reserve Bank of India. 


 The fair practices code so framed and approved by the Board of Directors should be published and disseminated for the information of the public at the website of the Company as well as at the Registered / Corporate offices of the Company in English in the vernacular language of the place where the Registered / Corporate offices is located.

This Fair Practice Code is aimed to provide to all the stakeholders, especially customers effective overview of practices followed by the Company in respect of the financial facilities and services offered by the Company to its customers.


2.    The objectives of the Code are:


  1.   To promote and ensure good business practices in dealing with its customers, during on-boarding, loan processing, disbursal and loan service  period upto the termination of the loan;


  1.   To promote a fair relationship and transparency between the customer and the Company; so that customer can have a better understanding of  the level of service that can be expected from our Company, and the charges inclusive of Interest rates, processing fees and all other charges levied by the Company.

  1.   To ensure compliance with legal norms in matters relating to recovery of loan amount with other charges including delays and late payments                charges, re-possession of assets and repayment mechanism charges; 

  1.     To strengthen mechanisms for redressal of customer grievances;

  1.     To foster customer confidence in the Company

3.    Applications for loans and their processing:


This code applies to financial products and services offered by the Company currently or which may be introduced at a future date.


  1. All communications to the borrower will be in the vernacular language or a language as understood by the borrower or with an undertaking that the borrower has understood all terms in totality, irrespective of the language in which he has signed the documents, after going through the same in his vernacular language. 
  2. Loan application forms would include necessary information related to the loan being advanced to the borrower, so that a meaningful comparison with the terms and conditions offered by other NBFCs and lenders can be made and an informed decision can be taken by the borrower. The loan application form would indicate the documents required to be submitted with the application form as also required later for sanctioning and disbursal of the loan/facility
  3. The Company will have a system of giving acknowledgement for receipt of all loan applications. The time frame within which loan applications will be disposed of will be indicated in the acknowledgement.
  4. The Company will also communicate to the borrower if the loan is rejected.


4.    Loan appraisal and terms/conditions:


  1. The Company will ensure that there is proper assessment of credit application made by borrowers. The assessment would be in line with the Company’s credit policies and procedures.
  2. The Company will convey in writing to the borrower in the vernacular language or a language as understood by the borrower by means of sanction letter, the amount of loan sanctioned along with the terms and conditions including annualised rate of interest and method of application thereof and keep the acceptance of these terms and conditions by the borrower on its record.
  3.  The Company will mention the processing fees, other charges, rate of interest and penal interest charged for late repayment in bold in the loan agreement. 
  4. The Company will make available a copy of the loan agreement along with a copy of all enclosures quoted in the loan agreement in a vernacular language or a language as understood by the borrower on the Company’s Website which can be referred to by the borrowers at the time of sanction / disbursement of loans.


The code is applicable to all the above products of the Company irrespective of whether the product /service is provided at the dealer point or any agency premises or the company’s own offices or Group companies.


5.    Disbursement of loans including changes in terms and conditions: 


  1. a.    The Company will ensure timely disbursement of loans sanctioned in conformity with the terms and conditions governing such sanction. The Company will give notice to the borrower in the vernacular language or a language as understood by the borrower, of any change in the terms and conditions, including disbursement schedule, interest rates, service charges, prepayment charges etc. 
  2. b.     The Company will ensure that changes in interest rates and charges are effected only prospectively. A suitable condition in this regard shall be incorporated in the loan agreement. 
  3. c.     Decision to recall / accelerate payment or performance under the agreement will be in consonance with the loan agreement. 
  4. d.     The Company will release all securities on repayment of all dues or on realisation of the outstanding amount of loan subject to any legitimate right or lien for any other claim that the Company may have against the borrower. If such right of set off is to be exercised, the borrower will be given notice about the same in writing 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.


6.    General:


  1. The Company 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 the notice of the Company), or in line with any compliance or regulatory requirement of inspection and audit of the borrowers business activities.
  2. In case of receipt of request from the borrower for transfer of borrower’s account, the consent or otherwise i.e. objection of the Company, if any, will 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. 
  3. In the matter of recovery of loans, consistent with its policy, the Company will not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans etc. 
  4. The Company will adequately train the collection executives and other staff to deal with the customers in an appropriate manner.
  5. The Company will call delinquent customers only between 0700 hrs. to 1900 hrs., unless
  6. under special circumstances, as decided by the company, require calling  customers  outside the hours mentioned above.
  7. The Company may initiate such actions as required  for enforcing security charged to it of the delinquent borrower, if required, with the  aim only to recover dues, cost and expenses incurred of such enforcement action. 
  8. The Company shall ensure that the entire process of enforcing its security, valuation and realization thereof would be fair and transparent


7.    Regulation of rate of interest


  1. a.    The Board of Directors has adopted an interest rate model for determining the rate of interest to be charged on loans and advances, processing and other charges taking into account relevant factors such as, cost of funds, margin and risk premium, etc. The rate of interest and the approach for gradations of risk and rationale for charging different rate of interest to different categories of borrowers shall be disclosed to the borrower or customer in the application form and communicated explicitly in the sanction letter, as also displayed on the company’s website and updated from time to time. 
  2. b.    The rates of interest and the approach for gradation of risks shall also be made available on the web-site of the Company. The information published in the website or otherwise published would  be updated whenever there is a change in the rates of interest. 
  3. c.    The rate of interest would should be annualised rates so that the borrower is aware of the exact rates that would be charged to the account. 
  4. d.    As a measure of customer protection, Company  shall not charge foreclosure charges/ pre-payment penalties on all such floating rate term loans sanctioned to individual borrowers, as prescribed by the concerned regulatory authorities from time to time.  


8.    Repossession of vehicles and properties or other moveable assets financed


The Company should include a built-in re-possession clause in the loan agreement with the borrower which must be legally enforceable.  

To ensure transparency, the terms and conditions of the loan agreement will contain provisions regarding: 

(a)    Notice period before taking possession of the security; 

(b)    Circumstances under which the notice period can be waived; 

(c)    The procedure for taking possession of the security;

(d)    A provision regarding final chance to be given to the borrower for repayment of loan before the sale / auction of the property; 

(e)    The procedure for giving repossession to the borrower and 

(f)    The procedure for sale / auction of the property.  

(g)    Any settlement of the dues, either before or post a re-possession will be at the sole discretion of the Company

        The Company should include a built-in re-possession clause in the loan agreement with the borrower which must be legally enforceable.  

        To ensure transparency, the terms and conditions of the loan agreement will contain provisions regarding: 

(h)     Pursuant to the provisions of SARFAESI Act 2002, notice and the incident of repossession shall be published in any Newspaper and/or media              (print, social etc.).