FAIR PRACTICES CODE (as amended on 21st September, 2015)
Pursuant to the Notification issued by the Reserve Bank of India by its Circular No.RBI/2006-07/138 DNBS (PD) CC No.80/03.10.042/2005-06 dated 28th September 2006, Seyad Shariat Finance Limited (referred to as the "Company") has formulated this Fair Practices Code to lay down the following procedures/practices in dealing with the business transactions and also amended the same from time to time. This Code shall come into effect on 1st April, 2007
Applications for loans and their processing
>> All communications to the borrower shall be in the vernacular language or a language as understood by the borrower.
>> 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 with the application form.
>> The Company would give acknowledgement for receipt of all loan applications. The time frame within which loan applications shall be disposed of is also indicated in the acknowledgement.
>> 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 with the application form.
>> The Company would give acknowledgement for receipt of all loan applications. The time frame within which loan applications shall be disposed of is also indicated in the acknowledgement.
Loan appraisal and terms/conditions
>> The Company shall conduct a due diligence on the credit worthiness of the borrower, which will be an important parameter for taking decision on processing of the application. The assessment would be in line with the Company's internal policies, norms and procedures in respect thereof.
>> The Company upon approval of the loan shall convey the applicant through an agreement cum sanction letter or otherwise indicating the amount of loan, annualized rate of interest applicable, along with the terms and conditions.
>> The Company shall obtain an acceptance from the borrower of the loan terms and maintain a record of such acceptance.
>> The Company shall furnish a copy of the loan agreement as understood by the borrowers along with a copy of all the enclosures quoted in the loan agreement to the borrowers.
>> The Company upon approval of the loan shall convey the applicant through an agreement cum sanction letter or otherwise indicating the amount of loan, annualized rate of interest applicable, along with the terms and conditions.
>> The Company shall obtain an acceptance from the borrower of the loan terms and maintain a record of such acceptance.
>> The Company shall furnish a copy of the loan agreement as understood by the borrowers along with a copy of all the enclosures quoted in the loan agreement to the borrowers.
Disbursement of loans including changes in terms and conditions
>> The Company shall give notice to all its borrowers of any change in the terms and conditions - including disbursement schedule, interest rates, service charges, prepayment charges etc. The Company shall also ensure that changes in interest rates and charges are effected only prospectively. Any changes to the above charges shall be made available at our branches and also the website of the company. The website address is also available on the application form.
>> The Company has mentioned the penal interest charged for the late payment in bold in the agreement. A suitable provision in this regard shall be incorporated in the loan agreement.
>> Any decision to recall/accelerate payment or performance under the loan agreement shall be inconsonance with the Loan Agreement.
>> 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 the Company may have against the borrowers. 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 Company is entitled to retain the securities until the relevant claim is settled / paid.
>> The Company has mentioned the penal interest charged for the late payment in bold in the agreement. A suitable provision in this regard shall be incorporated in the loan agreement.
>> Any decision to recall/accelerate payment or performance under the loan agreement shall be inconsonance with the Loan Agreement.
>> 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 the Company may have against the borrowers. 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 Company is entitled to retain the securities until the relevant claim is settled / paid.
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 Company).
>> In case of receipt of request from the borrower for transfer of account, the consent or otherwise i.e. the Company's objection, 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, consistent with its policy over the years, the company shall not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans, etc. The Company's staff are adequately trained (including not to behave rudely with the customers) to deal with the customers in an appropriate manner. The contract / loan agreement with the borrower shall contain the repossession clauses in line with RBI Circular No.RBI/2008-09/454 DNBS (PD) CC. No.139/03.10.001/2008-09 dated 24th April 2009.
>> In case of receipt of request from the borrower for transfer of account, the consent or otherwise i.e. the Company's objection, 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, consistent with its policy over the years, the company shall not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans, etc. The Company's staff are adequately trained (including not to behave rudely with the customers) to deal with the customers in an appropriate manner. The contract / loan agreement with the borrower shall contain the repossession clauses in line with RBI Circular No.RBI/2008-09/454 DNBS (PD) CC. No.139/03.10.001/2008-09 dated 24th April 2009.
Grievances
Mr. F.Sadiq, Executive Director & Compliance Officer, Seyad Shariat Finance Limited, II- Floor, House of Seyad, North Bypass Road,Vannarpettai, Tirunelveli - 627 003, Tamilnadu, Tel : 0462-2322986, Mobile: 94433 22786 and/or Mr.K.Venkatraman, Assistant General Manager, Seyad Shariat Finance Limited, I Floor, Kanagadhara Building,
54B/8A, S.N.High Road,Tirunelveli - 627 001, Tamilnadu, Tel: 0462 2338284, Mobile: 98421 51386 Email address: seyadshariat@gmail.com are the Grievance Redressal Officers under the Fair Practices Code who can be approached by the public for resolution of complaints against the Company. The complaint / dispute is not redressed within a period of one month, the customer may appeal to the Officer-in-Charge of the Regional Office of Department of Non-Banking Supervision (DNBS), Reserve Bank of India, Fort Glacis, Rajaji Salai, Chennai 600 001, Tamil Nadu, Tel: 044 25393406.
For the benefit of our customers, the above information on "grievances" shall be displayed at our branches / places where business is transacted.
For the benefit of our customers, the above information on "grievances" shall be displayed at our branches / places where business is transacted.
Gradation of Risks
The rate of interest specified for each loan is at monthly rests, with the corresponding annualised rate being arrived at through Seyad Shariat Finance Finance's interest rate model which takes into account relevant factors such as cost of funds, margin and risk premium.The decision to give a loan and the rate of interest thereon are carefully assessed on a case by case basis based on multiple factors which may include the borrower's cash flows (past, current and projected), borrower's other financial commitments, the borrower's credit record, the security for the loan as represented by underlying assets or other financial guarantees etc. Such information is gathered based on information provided by the borrower, credit reports, market intelligence and information gathered by field inspection.
Interest Rate Policy
The rate of interest charged to our customers is linked to our Base Rate (BR) computed on our weighted cost of funds, negative carry on SLR, Un allocatable overheads and average return on our net worth. The mark up over the BR varies from 200 bps to 900 bps depending on the risk profile of the customer, asset class (commercial vehicle, car, tractors, construction equipment, machinery etc.), asset type (new / used), and prevalent liquidity conditions. Accordingly, the present rate of interest charged to our customers is in the range of 19% to 30% p.a. payable monthly.
