Fair Practise Code

1. Introduction

PC Financial Pvt Ltd, a Non-Banking Finance Company registered with Reserve Bank of India (“RBI”) is presently in the business of providing different types of loans which includes Personal Loans etc., to its various customers. Such credit facilities are extended to different types of customers, which include Individuals, Partnership Firms, Companies and other Legal entities.

PC Financial Pvt Ltd (“the Company”) has put in place the Fair Practice Code (FPC) as per the RBI directives and it has been duly approved by the Board of Directors. The Fair Practice Code sets out the principles for fair practices/ standards while dealing with its customers.

The Company has adopted this Fair Practices Code (“the Code”) and have implemented it. The Code applies to the all categories of products and services offered by the Company (currently offered and which may be introduced in future).The Company has developed the FPC for its lending operations based on the RBI guidelines, which intends to provide assurance to all the borrowers of the Company’s commitment to fair dealing and transparency in its businesses transactions. Commitments outlined in this Code are applicable under normal operating environment; however, under situations beyond the control of the corporation, it may not be possible for us to fulfill the commitments under this Code.

2. Key Commitments

The Company's key commitments to customers:

3. Information

4. Applications for loans and their processing

5. Loan appraisal and terms/conditions

The Company will convey in writing to the borrower in the vernacular language or a language as understood by the borrower by means of sanction letter or otherwise, the amount of loan sanctioned along with the terms and conditions including annualised rate of interest and method of application thereof and keep the acceptance of these terms and conditions by the borrower on its record. The Company will mention the penal interest which will be charged for late repayment and / or any other default on the part of the customer, in bold in the loan agreement.

The Company will furnish a copy of the loan agreement preferably in the vernacular language as understood by the borrower along with a copy each of all enclosures quoted in the loan agreement to all the borrowers at the time of sanction / disbursement of loans.

6. Disbursement of loans including changes in terms and conditions

7. General

8. Grievance Redressal

The public notice will serve the purpose of highlighting to the customers, the grievance redressal mechanism followed by the Company, together with details of the Grievance Redressal Officer and of the Regional Office of the RBI.9. Posting on Website
Fair Practices Code, preferably in the vernacular language or a language as understood by the borrower shall be put up on the web-site of the Company for the information of various stakeholders.

9. Interest Rate Policy

Reserve Bank of India has directed that the Board of each NBFC shall approve an Interest rate model for the Company, taking in to account relevant factors such as the cost of funds, margin and risk premium etc and determine the rate of interest to be charged for loans and advances. Further, the directives state that the rate of interest and the approach for gradation of risk and the rationale for charging different rates of interest for different category of borrowers should be communicated to the borrowers/customers in the sanction letters to them. The Interest rate model is also required to be made available on the website of the Company so as to enable the customers to understand the logic and methodology of the lending rates charged to them.
In compliance with the said RBI directives, the Interest rate model for PC Financial Pvt Ltd (“Company”) is as given below:

Any revision in the Company’s interest rates would be reviewed by COO of the Company for approval.

10. Regulation of excessive interest charged

  • 1、The Board of Directors has adopted an interest rate model for determining the rate of interest to be charged on loans and advances, processing and other charges taking into account relevant factors such as, cost of funds, margin and risk premium, etc. The rate of interest and the approach for gradations of risk and rationale for charging different rate of interest to different categories of borrowers shall be disclosed to the borrower or customer in the application form and communicated explicitly in the sanction letter and loan agreement.
  • 2、The Board of Directors has adopted an interest rate model for determining the rate of interest to be charged on loans and advances, processing and other charges taking into account relevant factors such as, cost of funds, margin and risk premium, etc. The rate of interest and the approach for gradations of risk and rationale for charging different rate of interest to different categories of borrowers shall be disclosed to the borrower or customer in the application form and communicated explicitly in the sanction letter and loan agreement.
  • 3、The rate of interest shall be annualised rate so that the borrower is aware of the exact rates that would be charged to the account.