RBI has issued directives for Non-Banking Financial Companies (NBFCs) vide circular - DNBS (PD) CC No. 80 / 03.10.042 / 2005-06, dated September 28, 2006, detailing standards for fair business and corporate practices while dealing with their customers (as modified, amended and updated from time to time, the "FPC").

The FPC is intended to cover the following areas:

• Applications for Loans and their processing
• Loan appraisal and terms/conditions
• Disbursement of loans including changes in terms and conditions
• General Provisions
• Grievance Redressal Mechanism

1. Application for Loans and their processing
    

   All pertinent loan information as prescribed by the FPC has been made available in the respective application form(s). This information includes:

   • Loan parameters such as minimum / maximum loan amount, tenure, mode of repayments, loan tariffs, all in costs of loans, all applicable charges and fees, etc
   • Indicative list of KYC documents such as address proof, id proof, income proof etc to be submitted together with the duly completed application form

   All application forms have a perforated section which is issued to the applicant on receipt of completed application form. This is issued as an acknowledgement of receipt of the form.

   The approximate time frame for the loan to be processed post the submission of completed application form replete with information and relevant documentation is listed below:

   • Securities Finance: 10 working days
   • Loan Products: 15-20 working days

   All loans sanctions are subject to completion of credit appraisal and verification procedures. The applications that do not meet the requisite criteria are declined. The loan status whether a sanction or a decline is promptly communicated to the customer in writing or verbally.

   The application acknowledgement specifies the approximate timeframe for the loan to be processed. In the interim, the applicant may contact KFSL through the below communication channels:

   • Call us on the Toll Free Number 1800 102 8012
   • E-mail us at karvyfinance@karvy.com
   • SMS ‘KCARE’ to 56767 with the application number
   • Write to us at : Karvy Finance, B 502, Business Square, Solitaire Park, Andheri (E), Mumbai – 400093
   • Visit the nearest branch. Click Here

    

   Applicants are welcome to contact KFSL at any stage of the approval process
    

2. Loan appraisal and terms / conditions
    

   Loan applications are subject to the credit appraisal process followed at KFSL.

   At the time of loan sanction, a sanction letter indicating the loan amount sanctioned, the annualized rate of interest applicable, processing fee, loan tenor, EMI payable, all other applicable fees and charges and other loan details as applicable shall be conveyed to the loan applicant in writing. The loan disbursement process would be initiated on receiving the written acceptance of such terms and conditions. This written consent of the applicant shall be retained by KFSL and maintained in its records.
    

3. Disbursement of loans including changes in terms and conditions
    

   Any changes to the terms and conditions, including disbursement schedule, interest rates, service charges, prepayment charges etc shall be informed individually to the borrowers and terms and conditions relating to the same shall be captured in the individual loan agreements. Alternately the same made available on the KSFL website (www.karvyfinance.com ).

   For account specific charges, the changes will be communicated individually to the borrower in writing.

   Other charges such as bounce cheque charges, late payment charges, cheque swap charges, statement of account, document retrieval charges, prepayment charges, re-booking charges, re-pricing charges, cancellation charges, PDC replenishment charges and other incidental charges are applicable depending on the product / scheme opted by the borrower. These charges shall be standard across customers irrespective of their credit worthiness and /or credit history.

   Any change in the above applicable charges (including interest rate etc) shall be informed promptly to the borrower, shall be in accordance with the terms and conditions of the individual loan agreement and shall be effected prospectively.

   Decision to recall / accelerate payment or performance under the agreement shall be in accordance with the terms and conditions in accordance with the agreement and duly acknowledged by the borrower.

   All securities pertaining to the loan would be released on receipt of full and final payment of the loans, subject to any legitimate right or lien, and set-off for any other claim that KFSL may have against the borrowers. If such right of set-off is to be exercised, the borrower shall be given prompt notice about the same, with full particulars about the remaining claims and the conditions under which KFSL is entitled to retain the securities until the relevant claim is settled / paid.

   Any changes to the above charges standardized across customers shall be made available on our website of KFSL (www.karvyfinance.com ). The website address is also available on the application form.
    

4. General Provisions
    

   KFSL shall refrain from interference in the affairs of the borrower except for the purposes provided in the terms and conditions for of the loan agreement (unless new information, not earlier disclosed by the borrower, has come to the notice of KFSL).

   In case of receipt of request from the borrower for transfer of borrowal account, the consent or otherwise i.e. objection of the KFSL, if any, shall 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.

   In the matter of recovery of loans, KFSL and its representatives shall not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans, etc.
    

5. Grievance Redressal
    

   KFSL’s policy is to treat and service all the clients consistently and fairly. KFSL has laid down the appropriate grievance redressal mechanism within the organization to resolve disputes arising in this regard.  This mechanism shall ensure that all disputes arising in connection with any matter pertaining to business practices, lending decisions, credit management and recovery decisions shall be heard and the response would be sent for such complaint / grievance.

   Customer can forward the complaint through any of the five modes of communication namely

   • Call us on the Toll Free Number 1800 102 8012
   • E-mail us at karvyfinance@karvy.com
   • SMS ‘KCARE’ to 56767
   • Write to us at : Karvy Finance, B 502, Business Square, Solitaire Park, Andheri (E), Mumbai – 400093
   • Visit the nearest branch. Click Here

   All the customer queries and complaints registered through the above channels shall be reviewed, monitored and resolved to the satisfaction of our customers. The focus shall be to ensure all grievances are resolved in a timely basis and to the full satisfaction of our customers.

Escalation Matrix:

Level 1: Customer Care Team
If the response received from the above access channels is not satisfactory or if there is no response in 10 working days, complaint can be escalated to the under mentioned:

The Manager,
Customer Care,
Karvy Finance
B 502, Business Square,
Solitaire Park,
Andheri (E),
Mumbai – 400093
Email id: karvyfinance@karvy.com

The customer shall provide his loan account number to help us understand and address the concerns.

Level 2: Service Head
If there is no satisfactory response received within 7 working days of escalating the complaint to the Customer Care Team, the same can be escalated to the under mentioned:

Email id: servicehead.kfsl@karvy.com

Level 3: Senior Management
If the concerns have not been fully addressed or if there is no revert from the Service Head within 7 working days, final level of escalation would be to:

Email id : management.kfsl@karvy.com

The Board of Directors and the management team shall also periodically review the compliance of the KFSL's Fair Practices Code detailed above. They will also ensure that its functioning reflects its commitment to all the stakeholders for offering in a fair and equitable manner, the various financial services and products and the grievances redressal mechanism at various levels of management. KFSL shall modify, amend and update the above Code from time to time, in accordance with the guidelines prescribed by the RBI, from time to time