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General public is hereby informed that Sri Anaiyan Finance Private Limited has not released any online lending app and does not have any tie-up with any third party online lending app. If any app is found claiming to be released by us or any app is found to be claiming to have tie-up with us, kindly bring it to our attention via email admin@srianaiyanfinance.com or call 9750877717

FAIR PRACTICE CODE

Background and Applicability of the Code

As per Reserve Bank of India, by its Notification this has reference to Master Direction – Reserve Bank of India (Non-Banking Financial Company –Scale Based Regulation) Directions, 2023, we abide by RBI norms regarding fair practices code as approved by the board. We note to add in our website whenever modification is required to know the public.

SRI ANAIYAN FINANCE PRIVATE LIMITED (hereinafter referred to as “SAFPL” or “the Company”) is a Private Limited company incorporated under the provisions of the Companies Act, 2013 and is a non-deposit taking non-banking financial company registered with the Reserve Bank of India.

1. Applications for loans and their processing

  1. SAFPL official language for all communications within the Company or with third parties shall be English.
  2. All communications to the borrower shall be in English or in vernacular language / the language as understood and confirmed by the borrower.
  3. Loan application of SAFPL will include 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.
  4. The documents required to be submitted with the loan application including KYC documents will be informed to the borrower separately.
  5. SAFPL shall provide to the prospective borrower an acknowledgement for receipt of all loan applications. The time frame within which loan applications will be disposed of will be indicated in the acknowledgement.
  6. SAFPL would verify the loan applications within a reasonable period of time and if additional details/documents are required, it would intimate the borrowers immediately.

2. Loan Appraisal and Terms/ Conditions

  1. SAFPL shall convey in writing to the borrower in English or in vernacular language / the language as understood by the borrower by means of a sanction letter or otherwise. In case of sanction of loan, the sanction letter shall contain the amount of loan sanctioned along with the terms and conditions including annualized rate of interest and method of application thereof. SAFPL shall also to communicate to the borrower if the loan is rejected.
  2. The acceptance of the terms and conditions communicated by the borrower shall be persevered by SAFPL on its record and copy of same shall be provided to the borrower upon its request.
  3. Penalty if charged for noncompliance of material terms and conditions of loan contract by the borrower shall be treated as penal charges and shall not be in the form of penal interest on the advances. There shall be no capitalization of penal charges i.e. No further interest computed on such charges.
  4. This will not affect the normal procedures for compounding of interest in the loan account.
  5. Penal charges shall be reasonable and commensurate with the non- compliance and SAFPL shall have board approved penal charges.
  6. The SAFPL shall impose reasonable penal charges for non-compliance of material terms and conditions of the loan contract and shall disclose the quantum and reason in the loan agreement /Key Fact statement and shall display on website under the head interest rate and Service charges.
  7. No further interest shall be computed on such penal charges.
  8. The penal charges in case of loans sanctioned to individual borrowers for purpose other than business shall not be higher than the penal charges applicable to Non-individual borrowers for similar non-compliance of material terms and conditions.
  9. SAFPL will invariable furnish a copy of loan agreement along with a copy of each enclosures quoted in the loan agreement to all borrowers at the time to sanction/disbursement of loan in English or in vernacular language / the language as understood by the borrower.

3. Disbursement of loans including changes in terms and conditions

  1. SAFPL shall give notice to the borrower in English or in vernacular language / the language as understood by the borrower, of any change in the terms and conditions including disbursement schedule, annualized interest rates, service charges, prepayment charges etc. Changes in interest rates and charges shall be effected prospectively and a suitable condition in this regard shall be incorporated in the loan agreement.
  2. Decision to recall / accelerate payment or performance under the agreement shall be in consonance with the loan agreement.
  3. SAFPL shall release all securities on repayment of all dues or on realization of the outstanding amount of loan subject to any legitimate right or lien for any other claim SAFPL 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 SAFPL are entitled to retain the securities till the relevant claim is settled/paid.

4. General

  1. SAFPL will refrain 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 its notice.
  2. The SAFPL would not discriminate on grounds of sex, caste and religion in the matter of lending. However, this does not preclude the SAFPL from participating in credit-linked schemes framed for weaker sections of the society.
  3. In case of receipt of request from the borrower for transfer of borrower account, the consent or otherwise i.e. objection of SAFPL, if any, should be conveyed within 21 days from the date of receipt of request. Such transfer shall be as per contractual terms entered into with the borrower and in consonance with law, statutes, rules, regulations and guidelines as may be applicable from time to time.
  4. In the matter of recovery of loans, SAFPL shall not resort only to remedies which are legally and legitimately available to it and will not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans etc.
  5. SAFPL shall ensure that the staff is adequately trained to deal with the customers in an appropriate manner.
  6. SAFPL has laid appropriate internal principles and procedures in determining interest rates and processing and other charges.
  7. The Board of Directors of NBFC has laid down the appropriate grievance redressal mechanism within the organization to resolve disputes arising in this regard. Such a mechanism would ensure that all disputes arising out of the decisions of lending institutions' functionaries are heard and disposed of at least at the next higher level. A report on the compliance of Fair Practices Code and the functioning of the grievance’s redressal mechanism at various levels of management would be submitted to the Board at reasonable intervals.
  8. The SAFPL shall put up the Fair Practice Code on its website for the information of various stakeholders.
  9. The SAFPL shall charge interest from the date of actual disbursement of the funds to the borrower and not from the date of sanction of loan or date of execution of loan agreement, if they are predated to the disbursement date.
  10. In the case of disbursal or repayment of loans during the course of the month, the SAFPL shall charge interest only for the period for which the loan was outstanding during the month and not for the entire month.
  11. The SAFPL shall not collect advance instalments from the borrower but reckon the full loan amount for charging interest.

5. Regulation of excessive interest charged

The SAFPL shall frame appropriate internal principles and procedures for determining the interest rates and processing and other charges, if any, and also to ensure that they are not excessive. The SAFPL shall, at the time of disbursal, ensure that the interest rate and other charges, if any, on loan and advances are in strict adherence to above referred internal principles and procedures. The rate of interest shall be annualized rates to make the borrower aware of the exact rates that would be charged to the account.

6. Digital Lending

Whenever the SAFPL resorts to lending through its own digital lending platform or through an external lending platform, the SAFPL shall adhere to the Fair Practices Code guidelines.

7. Confidentiality

Unless authorized by the customer SAFPL will treat all personal information as private and confidential. Unless authorized by the customer, we will not reveal transaction details to any other entity other than in the following exceptional cases:

  1. If we have to provide the information by statutory or regulatory laws
  2. If there is a duty to the public to reveal this information
  3. If our interest requires us to provide this information (e.g., fraud prevention) to Banks / Financial Institutions / Our Group and Associate Companies.
  4. We will not use this reason for giving information about customers to anyone else for marketing purposes.

8. Grievance Redressal Mechanism

The mechanism will ensue that all the disputes arising out the decisions of lending institution’s functionaries are heard and disposed of at least at the next higher level. The Board of Directors will periodically review the compliances of Fair Practice Code and the functioning of the grievances redressal mechanism at the various levels of Management. The consolidated report of such reviews will be submitted to the Board at subsequent Board Meetings.

For grievances, customers can write to:
The Compliance Officer,
P KANDASAMY, MANAGING DIRECTOR,
Sri Anaiyan Finance Private Limited
No. 395-A, Nataraj Tower Santhaipettai Pudur,
Paavai Mahal Cross Paramathi Road,
Namakkal -TN 637001,
Email : admin@srianaiyanfinance.com

9. Monitoring

A review of the compliance of the Fair Practices Code including the grievances redressal mechanism would be done by the Management regularly and a consolidated report will be submitted to the Board of Directors periodically.


This Code was last reviewed and approved by the Board on 07th May, 2024.