Fair Practice Code

The Board of Directors (the ' Board ' ) of the Company has adopted the following code of fair practice to lay down the procedures / practices in dealing with the business transactions. This code is formulated in pursuance of the notification issued by the Reserve Bank of India vide its Circular no. DNBS(PD)CC No. 80/03.10.042/2005-06 dated September 28, 2006.

1. Applications for loans and their processing

• Loan application forms 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. The loan application form indicates the documents required to be submitted along with the application form.
• The company provides acknowledgement for receipt of all loan applications. The acknowlegement includes the time frame within which loan applications will be disposed off.

2. Loan appraisal and terms / conditions

• The company shall convey in writing to the borrower by means of sanction letter or otherwise, the amount of loan sanctioned along with the terms and conditions including annualized rate of interest and method of application thereof and shall keep on record the acceptance of these terms and conditions by the borrower.

3. Disbursement of loans including changes in terms and      conditions

• The company shall give notice to the borrower of any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges, etc. The company ensures that changes in interest rates and charges are effected only prospectively and necessary provisions in this regard are contained in the loan agreement.
• Decision to recall / accelerate payment or performance under the agreement shall be in consonance with the loan agreement.
• The company 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 the company shall have against the borrower. If the 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 the the company is entitled to retain the securities till the relevant claim is settled / paid.

4. General

• The company shall 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 the notice of the lender).
• In case of receipt of request form the borrower for transfer of borrowal account, the consent or otherwise of the company 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, the company shall not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans.

5. Customer Grievance

• Any grievance with regard to this Code, shall be intimated to Mr. Thomas George Muthoot, Managing Director, Muthoot Capital Services Ltd, 5th Floor, Muthoot Towers, M G Road, Ernakulam, Kerala , 682 035 or by email to mail@muthootcap.com.