Asirvad Microfinance Limited is a Non-Banking Finance Company with license issued by the Reserve Bank of India. The Company was established in August 2007.
The Reserve Bank of India has issued various vide its circular dated September 28,2006,May 24,2007,October 10,2007,January 2,2009,April 24,2009,March 26,2012,and February 18,2013 issued guidelines on Fair Practices Code (FPC) for all NBFCs to be adopted by them while doing lending business. The guidelines inter alia, covered general principles on adequate disclosures on the terms and conditions of a loan and also adopting a non-coercive recovery method.
Asirvad continuously updates its Fair Practices Code to reinforce the commitment to fair practices in lending, transparency to customers and ethical standards in business practices and relationship with customers.
The Fair Practices Code is displayed in all our branch offices, Divisional Offices, the Head Office as well as the Company website www.asirvadmicrofinance.co.in. The effective rate of interest charged and the grievance redressal system set up by the Asirvad is also prominently displayed in all its offices and in the literature issued by it (in vernacular language) and on its website.
• Our policy is to be reasonable, transparent and fair with the customers. All communications with the borrower is in the vernacular language. The terms and conditions of the loans offered by us are clearly communicated to the customers in written form. During the three days of compulsory free training given to each center, Asirvad educates the customers about these terms and conditions so that the customer can make a well informed decision about a loan.
• Asirvad has also put in place a system of giving acknowledgement for all loan applications received. The application form also indicates the documents to be submitted by the customer along with the application form.
• Asirvad has also put in place a system of giving acknowledgement for all loan applications received. The application form also indicates the documents to be submitted by the customer along with the application form.
The application will go through an internal procedure and also a Credit Bureau check before loans are processed or approved. The applications which do not satisfy this procedure will be automatically rejected. In the event that the loan is rejected, Asirvad would communicate the decision to the customer and by recording it in the “Center Book”.
• To prevent over-indebtedness and over-borrowing, Asirvad has registered with Credit Bureaus and in addition to the internal records and appraisal mechanism, the data of each client with respect to current debt levels and repayment history will be used to assess the eligibility for loan.
• Asirvad conveys the amount of loan sanctioned by means of a sanction letter, along with the loan agreement indicating :
- Terms and conditions of the loan.
- The pricing of the loan (which includes only three components, i.e. the interest charge, the processing charge and the insurance premium (which includes the administrative charges in respect thereof).
- That no Security Deposit/margin is be collected from the borrower.
- That there will be no penalty charged on delayed repayment.
• Asirvad gives notice to the borrower in the vernacular language of any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges etc. Asirvad also ensures that changes in interest rates and charges are effected only prospectively. A suitable condition in this regard is incorporated in the loan agreement.
• All sanctioning and disbursement of loans is done only at the Branch office. The disbursement function is closely supervised by the Branch Officer, the Area Manager and the Divisional Manager.
• Each borrower is provided with a loan passbook (in vernacular language) at the time of disbursement, reflecting the following details. - The effective rate of interest charged.
- All other terms and conditions attached to the loan.
- Information which adequately identifies the borrower and
- Acknowledgements by Asirvad of all repayments including instalments received and the final discharge.
- The grievance redressal system set up by the MFI and also the name and contact number of the nodal officer
- Non-credit products issued shall be with full consent of the borrowers and fee structure shall be communicated in the loan card itself.
• At the time of disbursement, each customer is assured that the privacy of borrower data will be respected. Written consent will be obtained for use of information in promotions, marketing material and other public information.
• Loans are provided without any collateral for qualifying assets. For non-qualifying assets as and when we take securities, we will release all securities on repayment of all dues or on realisation of the outstanding amount of loan subject to any legitimate right or lien for any other claim NBFCs may have against borrower. If such right of set off is to be exercised, the borrower shall be given notice about the same with full particulars about the remaining claims and the conditions under which NBFCs are entitled to retain the securities till the relevant claim is settled /paid.
• In the matter of recovery of loans, recovery is normally made at a designated meeting venue. Field staff shall be allowed to make recovery at the place of residence or work of the borrower only if borrower fails to appear at central designated place on 2 or more successive occasions. Asirvad does not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans etc.
• Asirvad refrains from interference in the affairs of the borrower except for the purposes provided in the terms and conditions of the loan agreement (unless new information, not earlier disclosed by the borrower, has come to the notice of the lender).
• In case of receipt of request from the borrower for transfer of borrowal account, the consent or otherwise I.e. objection of Asirvad, if any, is conveyed within 21 days from the data of receipt of request. Such transfer shall as per transparent contractual terms in consonance with law.
• The Company has a detailed mechanism for grievance redressal. This will ensure that disputes and grievances are heard and resolved within reasonable period of time. The Company has a designated grievance redressal officer at the Head-Office who can be reached at the contact details provided on each borrower’s loan passbook.
