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Fair Practice Code

The Reserve Bank of India (RBI) has issued RBI/2024-25/30 DoS.CO.PPG.SEC.1/11.01.005/2024-25 dated April 29, 2024 Guidelines on Fair Practice Code for Non-Banking Financial Companies (NBFC)s thereby setting standards for fair business and corporate practices while dealing with their customers.

The Fair Practice Code, as adopted herein below, is in conformity with the guidelines on Fair Practice Code for NBFCs as contained in the aforesaid RBI Circular(s)/Direction(s). This Fair Practice Code shall be displayed at all the Branches/office premises in the Vernacular language and shall also be placed on the company’s website.

I. Application for loan and their processing:

  • The Company will have a Board approved, standard form of loan agreement in vernacular language or a language as understood by the borrower
  • Loan application forms will clearly state the information/ documents that the company requires to collect from the customers to fulfil the KYC norms and will include the following to comply with legal and regulatory requirements:
    • All the terms & conditions of the loan;
    • Pricing of loan which involves three components i.e. the interest charge, the processing charge and the insurance premium;
    • No security deposit/margin is collected from the borrower;
    • The moratorium between the grant of loan and the due date of the repayment of the first instalment (as per RBI Guidelines);
    • An assurance that the privacy of the borrower data will be respected and;
    • The Company will be accountable for preventing inappropriate staff behaviour and timely grievance redressal.

The product catalogue will be made available to the borrower providing details of the product, the rate of interest, repayment terms, processing fees, insurance and all 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 designated staff of the Company shall verify & cross check the loan application along with the supporting documents. The staff should also make sure that all the mandatory details are being duly filled in the loan application.
  • All the communication by the Company to the borrower shall be in vernacular language or a language as understood by the borrower.
  • The Company shall give acknowledgment for receipt of all loan applications and the time frame within which loan applications will be disposed shall also be indicated in the acknowledgment.

II. Loan appraisal and Terms and Conditions:

  • The Company shall conduct a due diligence to assess the need and repayment capacity of client before providing loans, which will be an important parameter for taking decisions on processing of the application to avoid over-indebtedness of the client. The Company will make loans commensurate with the client’s ability to repay. The assessment would be in line with the company’s credit policies, norms and procedures in respect thereof.
  • The Company shall convey in writing to the borrower in the vernacular language as understood by the borrower by means of sanction letter or otherwise, the amount of loan sanctioned along with the terms and condition including annualised rate of interest and method of application thereof.
  • The Company shall keep the acceptance of the terms and conditions by the borrower and all other concerned documents on its record.
  • The Company shall furnish a copy of the loan agreement containing all the terms and conditions attached to the loan in the vernacular language as understood by the borrower along with the copies of all enclosures quoted in the loan agreement to all the borrowers at the time of sanction/disbursement of loans.

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

  • Loan will be disbursed in the Customer’s bank account.
  • Sanction Letter and repayment schedule shall be provided to the customer which shall contain all the necessary information regarding charges.
  • The Company will give notice to the borrower in the vernacular language as understood by the borrower of any change in terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges, etc. The Company will change interest rates and charges are only prospectively. The loan agreement will cover this through suitable disclosure.
  • Decision to recall/accelerate payment or performance under the agreement will be in consonance with the loan agreement.

IV. Grievance Redressal Mechanism:

The grievance redressal mechanism is being set up to resolve the disputes arising out of the decision of the functionaries in relation to the product and services. In case a Company’s staffs are involved in any kind of inappropriate behaviour, disciplinary actions against such staff shall be taken immediately. The clients will be made aware of the grievance settlement procedure at the time of disbursement of loans and during the group meetings. The monitoring and audit team will verify the awareness of the clients’ in this regard.

  • All branches shall have a suggestion and complaint box in their premises where the clients can make their grievances. All the clients’ shall have access to the higher level of staff (i.e. Branch Manager, Regional Manager or District Manager) to highlight and discuss their issues/grievances, if any. The senior staff at the field level has been empowered to take certain actions/decisions to address the needs/issues of the clients immediately. Our clients’ can also call at our Customer Service Helpline on Toll Free no 1800 309 7691, mail us on grievance@coraclefinance.in and or also can write to us at the below mentioned address:

    To,
    Coracle Capital Consulting & Corporate Services Private Limited
    SA15/121, 2nd Floor Mawaiya, Ashapur, Sarnath Road,
    Varanasi-221007,
    Uttar Pradesh

    All grievances shall be addressed within 48 hours to a week time on a case-to-case basis.
  • In case the compliant is not resolved within the given time or if the client is not satisfied with the solution provided, the client can approach the Complaints Redressal officer/Nodal Officer. The name and contact details of the officer is as follows:

    Name: Mr. Akhilesh Giri (AVP Operations)
    Contact No.: +91 9793650581     [calls will be taken between 9:30 a.m. to 6:30 p.m. on all working days]
    Email Id: grievance@coraclefinance.in

  • If the Complaint/ dispute is not addressed within a period of one month, the client may appeal to the officer-in-charge of the Regional Office of DNBS of RBI:

    To
    The Officer-in-Charge,
    Department of Non-Banking Supervision,
    Reserve Bank of India,
    6, Sansad Marg, New Delhi-110001
    Contact No. +91-11-23325225

The above Fair Practice Code shall be strictly followed by all department and staff. All clients will be made aware of the Fair Practice and transparencies that the Coracle Capital Consulting and Corporate Services Private Limited follows. The grievance settlement procedure existing in the organization should be explained at group meetings to all clients.

Review of the Compliance of the Fair Practices Code: The Managing Director of the Company will review the compliance of the Fair Practice Code and the functioning of the grievance redressal mechanism once in a quarter. Any deviation of compliance will be immediately placed to the Managing Director for immediate circular of the same to the Board. A report on the compliance of the Fair Practice Code and functioning of the grievance redressal mechanism will be placed before the Board of Directors of the Company at all Board Meetings.