Fair Lending Practice Code

1. PREAMBLE

Scope: l

(a) FAIR LENDING PRACTICES CODE (FLPC for short) Is a voluntary code commended, which aims to achieve synchronization of best practices of various banks for common approach, when they are dealing with Customers in India. It aims to provide valuable inputs to Customers and facilitates effective interaction of customers with banks.

2. Declarations:

Our Bank declares and undertakes

a) To provide professional, efficient, courteous, diligent and speedy services in the matter of retail lending.

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

c) To be fair and honest in advertisement and marketing of Loan Products.

d) To provide customers with accurate and timely disclosure of terms, costs, rights and liabilities as regards loan transactions.

e) If sought, to provide such assistance or advise to customers applying for loans.

f) To attempt in good faith to resolve any disputes or differences with customers by setting up complaint redressal cells within the organizations.

g) To comply with all the regulatory requirements in good faith.

h)To spread general awareness about potential risks in contracting loans and encourage customers to take independent financial advice and not act only on representation from banks.

3. FAIR PRACTICES:

3.1. Product Information:

a) A prospective customer would be given all the necessary information adequately explaining the range of loan products available with our Bank to suit his needs.

b) On exercise of choice, the customer would be given the relevant information about the loan product of his choice.

c) The Customer would be explained the processes involved till sanction and disbursement of loan and would be notified of timeframe within which all the processes will be completed ordinarily at our Bank.

d) The Customer would be informed of the names and phone numbers of branches and the persons whom he can contact for the purpose of loan to suit his needs.

e) The Customer would be informed the procedure involved in servicing and closure of the loan taken.

3.2. Interest Rates

3.2.1. Interest Rates for different loan products would be made available through and in any one or all of the following media, namely:

a) Through prominent display in the branches and at other delivery points

b) Through other media from time to time

c) In our Bank's Web site

3.2.2. On demand, Customers can have full details of method of application of interest.

3.3 Revision in Interest Rates:

a) Our Bank would notify immediately or as soon as possible any revision in the existing interest rates and make them available to the customers in the media listed in Para 3.2.1.

3.4. Default Interest/Penal Interest:

a) Our Bank would notify clearly about the default interest/penal interest rates to the prospective customers.

3.5. Charges:

a) Our Bank would notify details of all charges payable by the customers in relation to their loan account.

b) Our Bank would make available for the benefit of prospective customers all the details relating to charges generally in respect of retail products in the media as specified in Para 3.2.1.

c) Any revision in charges would be notified in advance and would also be made available in the media as listed in Para 3.2.1.

d) Our Bank would clearly specify the charge account for interest and charges, wherever necessary and get a mandate for debiting the said charge account along with the documentation.

3.6. Terms and Conditions for Lending:

a) Our Bank would ordinarily give an acknowledgement of receipt of loan request and if demanded by the customer, a copy of the application form duly acknowledged would also be given, as soon as the customer chooses to buy a product or service of his choice.

b) Immediately after the decision to sanction the loan, our Bank would show draft of the documents that the customer is required to execute and would explain, if demanded by the customer, the relevant terms and conditions for sanction and disbursement of loan.

c) Loan Application forms, Draft documents or such other papers to be signed by a customer should comprehensively contain all the terms and conditions relating to the product or service of his choice.

d) Wherever possible, reasons for rejection of loan would be conveyed to the customers e) Before disbursement of loan and on immediate execution of the loan documents, our Bank would deliver a copy of the duly executed documents to the customers.

3.7. Account Practices:

a) Our Bank would provide regular statement of accounts, unless not found necessary by the customers.

b) Our Bank would notify relevant due dates for application of agreed interest, penal interest, default interest, and charges if they are not mentioned in the Loan applications, documents or correspondence.

c) Our Bank would notify in advance any change in accounting practices that would affect the customer, before implementation.

3.8. Information Secrecy:

a) All personal information of the customer would be confidential and would not be disclosed to any third party unless agreed to by the customer. The term Third party' excludes all Law enforcement agencies, Credit Information Bureau, Reserve Bank of India, other banks and financial institutions.

b) Subject to above Para, customer information would be. revealed only under the following circumstances, namely
   * If the Our Bank is compelled by law
   * If it is in the Public Interest to reveal the information
   * If the interests of our Bank require disclosure.