Home » Fair Practices Code

The Fair Practice Code is drafted to facilitate and maintain a high degree of ethical standards in our Operations.

We at Svasti are committed to behaving in a fair, ethical and transparent manner in the conducting of our lending business.

We commit to be being fully compliant with the KYC guidelines issued by the RBI and to our Fair Practices Code, which is compliant with the RBI circular dated 1 July 2013 (RBI/2013-14/42 DNBS (PD) CC No.340/03.10.042/2013-14) and the Code of Conduct for MFIs in India.

Loan Process

  1. The process of applying for a loan will not be cumbersome
  2. The rate of interest charged will be in adherence with the RBI guidelines
  3. Only relevant documents, in accordance with KYC norms set by RBI, will be collected from customers
  4. The RBI guidelines for preventing over-indebtedness among customers will be followed
  5. All loan applications will be verified by field staff and go through necessary credit bureau checks to ensure the repayment capacity of the borrowers
  6. The moratorium between grant of loan and due date of repayment of first installment will be at least equal to repayment frequency
  7. No fee on non-credit products/services will be collected without prior declaration to the client
  8. No late fee will be charged on late payment
  9. No penalty will charged on prepayment
  10. No security deposit or margin will be collected

Communication with customers

  1. All communication to the borrower shall be in the vernacular language
  2. Svasti will provide each customer with a copy of the loan card, which contains the following information
    1. A statement articulating Svasti’s commitment to transparency and fair lending practice
    2. Information that identifies the borrower
    3. Pricing of the loan, which involves only three components
      1. The interest rate
      2. The processing fee
      3. The insurance premium
    4. The method of application of the interest
    5. All other terms and conditions attached to the loan including those linked to over‐indebtedness
    6. Fee structure for non-credit products that are issued with consent of the customer
    7. Confirmation that there is no penalty charged on delayed payment
    8. Confirmation that there is no security deposit or margin being collected
    9. An assurance that the privacy of the customer will be respected
    10. The moratorium between the grant of the loan and the due date of the repayment of the first installment
    11. A declaration that Svasti will be accountable for preventing inappropriate staff behaviour and providing timely grievance redressal
    12. The grievance redressal number and contact details
  3. In addition, the loan card will contain the acknowledgement by Svasti of all repayments including installments received and the final discharge
  4. If there is a change in the terms and conditions, the rate of interest, the disbursement schedule, service charges etc., the change will be intimated to the customer through a notice

Displaying information at branch

The branch will have the following information displayed for the benefit of the customer.

  1. The FPC document, in the vernacular language, articulating Svasti’s commitment to transparency and fair lending practices
  2. All the product details
  3. The effective rate of interest charged
  4. The processing charge
  5. The insurance premium
  6. A declaration that Svasti will be accountable for preventing inappropriate staff behaviour and providing timely grievance redressal
  7. The name, contact number and the email address of the customer care-in-charge.
  8. The contact details of the Officer In Charge of the Regional Office of DNBS of RBI under whose jurisdiction the Svasti office falls.

Website

The following information will be displayed on the website.

  1. The effective rate of interest
  2. The loan agreement and the terms and conditions

The contact information of the customer care and the Officer In Charge of the Regional Office of DNBS of RBI under whose jurisdiction the Svasti office falls

Disbursement

  1. The disbursement time will be intimated to the customers in advance
  2. All disbursement of loans will be done at a central location
  3. There will be more than one individual involved in the process of disbursement

Collection

  1. Collection will happen in a centralized location
  2. Collection will be done by employees of Svasti and collection will not be outsourced to recovery agents
  3. The field staff will adhere to the Employee Code of Conduct (ECOC) and the Collection Code of Conduct (CCOC).
  4. Field staff shall be trained to inculcate appropriate behaviour towards customers.
  5. Collection by the field staff will not be done using any abusive or coercive methods.
  6. Customers will be informed about registering complaints on the customer care number and action will be taken against staff found guilty of violating the ECOC or the CCOC.

Training

  1. Field staff will be trained to make required enquiries with regard with regard to existing debt of the customers
  2. Free training will be offered to the customers by the field staff or other employees of Svasti authorized to do so. The training will help the customers familiarize themselves with the procedures and systems related to the loan

Compliance

An internal body will be set up to monitor and audit Svasti’s compliance of existing RBI guidelines and help implement any future guidelines issued by RBI or SRO.

Complaints

In case of any complaints, customers should call the following:

Officer in charge of customer grievances – Ganesh Khirsagar
Phone number – +91-9769616817 (between 10 am and 5 pm)

Complaints can also be addressed to custservice@svasti.in

Svasti is accountable in preventing inappropriate staff behaviour. Svasti ensures timely grievance redressal. In case complaints are not addressed in one month, the customer may appeal to the Officer-in-Charge of the Regional Office of Department of Non-Banking Supervision (DNBS) of Reserve Bank of India (RBI).

Address for the Regional Office of DNBS of RBI:

Department of Non-Banking Supervision
Mumbai Regional Office,
Garment House,
Dr. A. B. Road, Worli
Mumbai – 400018

The Hindi version can be found here.