ecs credit
Fair Practice Code (FPC)
ECS Credit ("the Company") has implemented this Fair Practices Code ("FPC" or "the Code") in accordance with the directives issued by the Reserve Bank of India (RBI). The Code has been duly approved by the Board of Directors.
The Fair Practices Code lays down the principles and standards to be followed by the Company while dealing with its customers. It applies to all categories of products and services currently offered by the Company and those that may be introduced in the future.
This Code establishes minimum standards of fair practices to be followed while interacting with customers. It also provides customers with information regarding the Company's products and services and explains how the Company is expected to deal with customers on a day-to-day basis.
The Code is a dynamic document and shall be updated from time to time as and when required. Any regulatory changes implementing the Fair Practices Code shall be incorporated accordingly.
The Fair Practices Code provides important information to customers, including:
- Helping customers choose products and services that meet their requirements by providing clear information explaining the key features of the services and products.
- Informing customers about the documents and information required to establish identity, address, and other legal and regulatory compliance requirements.
1. Objectives of the Fair Practices Code
The objective of this Code is to ensure transparency in transactions between the Company and its customers and to promote well-informed business relationships.
The Fair Practices Code has been adopted by the Company to:
- Set minimum standards for dealing with customers.
- Build customer confidence in the Company.
- Provide greater transparency, enabling customers to better understand the products and services offered.
- Promote fair and cordial relationships between customers and the Company.
- Encourage market discipline and healthy business practices.
2. Available Products / Services
- Personal Loans with short tenure
3. Key Commitments
The Company's key commitments to customers are as follows:
a. Fair and Reasonable Treatment
The Company shall act fairly and reasonably in all dealings with customers by:
- Meeting the commitments and standards specified in this Code for all products and services offered.
- Ensuring that all products and services comply with applicable laws and regulations.
- Conducting all dealings with customers based on ethical principles of integrity and transparency.
b. Customer Awareness
The Company shall help customers understand how its products and services work by:
- Clearly explaining the financial implications of the products and services.
c. Prompt Resolution of Issues
The Company shall deal quickly and sympathetically with issues and grievances through:
- Correcting mistakes promptly.
- Handling customer complaints efficiently.
- Informing customers about the escalation mechanism if they remain dissatisfied.
d. Publicity of the Code
The Company shall:
- Publish the Fair Practices Code on its website.
- Make copies available to customers upon request.
4. Application of the Fair Practices Code
This Code applies to the Company, all its employees, and any person authorized to represent the Company during its business.
a. Applications for Loans and Their Processing
- All communications to borrowers shall be in English.
- The loan application forms of the Company shall include all necessary information to facilitate borrowers in making meaningful comparisons with similar products and services offered by other institutions, enabling informed decision-making. The application form shall also indicate the documents required to be submitted.
- The Company should have a system for acknowledging receipt of loan applications and shall specify the timeframe within which such applications will be processed and disposed of.
b. Loan Appraisal and Terms & Conditions
- The Company shall convey in writing to the borrower, by means of a sanction letter or otherwise, the amount of loan sanctioned along with all terms and conditions, including the annualized rate of interest and the method of application thereof. The acceptance of such terms and conditions by the borrower shall be retained on record.
- The Company shall mention the penal charges applicable for delayed repayment and/or any other default by the borrower in bold in the loan agreement.
- The Company shall furnish a copy of the loan agreement, preferably in the vernacular language or a language understood by the borrower, along with copies of all enclosures referred to in the loan agreement at the time of sanction/disbursement of the loan.
- The exact due dates for repayment, frequency of repayment, breakup between principal and interest, examples of SMA/NPA classification dates, and any subsequent changes in loan terms shall be communicated to the borrower at the time of loan sanction and thereafter until full repayment of the loan.
c. Rate of Interest and Penal Charges in Loan Accounts
- The Company shall not introduce any additional component to the rate of interest and shall ensure compliance with RBI guidelines on Fair Practices Code in both letter and spirit.
- The quantum and reason for penal charges shall be clearly disclosed in the loan agreement and in the Most Important Terms & Conditions / Key Fact Statement (KFS), as applicable. Such details shall also be displayed on the Company's website under "Interest Rates and Service Charges."
A separate Policy on Fair Lending Practices – Penal Charges on Loan Accounts has been implemented and duly approved by the Board of Directors.
Note: Charges are subject to revision by the Company from time to time on a prospective basis.
d. Disbursement of Loans Including Changes in Terms and Conditions
- The Company shall provide notice to the borrower regarding any changes in terms and conditions, including disbursement schedule, interest rates, service charges, prepayment charges, or any other applicable charges. Any such changes shall be implemented prospectively.
- The Company shall release all securities upon repayment of all dues or realization of the outstanding amount, subject to any legitimate right or lien for any other claim the Company may have against the borrower. If such right of set-off is exercised, the borrower shall be given prior notice with full particulars.
- Any decision to recall or accelerate payment or performance under the agreement shall be in accordance with the terms of the loan agreement.
5. General Provisions
- The Company shall not interfere in the affairs of the borrower except as provided in the terms and conditions of the loan agreement, unless new information not previously disclosed by the borrower comes to the notice of the Company.
- In case of a request from the borrower for transfer of the loan account, the Company shall communicate its consent or objection, if any, within 21 days from the date of receipt of such request.
- In the matter of loan recovery, the Company shall not resort to undue harassment such as persistently disturbing borrowers at odd hours or using coercive methods for recovery.
- Unless authorized by the customer, ECS Credit shall treat all personal information of customers as private and confidential.
- The Company shall ensure that its staff are adequately trained to deal with customers in a professional and courteous manner.
6. Grievance Redressal Mechanism
- The Company shall maintain a Grievance Redressal Forum comprising the senior management team, including the Managing Director and the Grievance/Compliance Officer, for resolving disputes and customer grievances. The forum shall meet within three weeks from the date of receipt of any grievance.
- The Company shall conduct periodic reviews of compliance with the Fair Practices Code and the functioning of the grievance redressal mechanism at various management levels. A consolidated report of such reviews shall be submitted to the Board at regular intervals.
The following contact details are available for customers:
If the complaint is not resolved within 30 days, the customer may lodge a complaint on the RBI CMS Portal:
https://cms.rbi.org.in or send the complaint to: 6, Sansad Marg, New Delhi – 110001
7. Regulation of Interest Charged
The Company shall adopt an appropriate interest rate model for determining the rate of interest to be charged on loans and advances, processing fees, and other charges, taking into consideration relevant factors such as cost of funds, margin, and risk premium.
- The rate of interest and the approach for gradation of risk, along with the rationale for charging different rates of interest to different categories of borrowers, shall be disclosed in the application form and communicated explicitly in the sanction letter.
- The rate of interest shall be expressed as an annualized rate so that the borrower is fully aware of the exact rates applicable.
- The rates of interest and the approach for gradation of risk shall also be made available on the Company's website. The information displayed on the website should be updated whenever there is a change in the rates of interest.
