Fair Practice Code of Dhanam Investment and Finance Pvt. Ltd.
1. Introduction and Applicability of the Code
- The Reserve Bank of India has prescribed broad guidelines on fair practices to be framed by all Non-Banking Financial Companies (NBFCs). This code should be published on the Company's website for public information.
- Dhanam Investment and Finance Pvt. Ltd. (Dhanam ) is a private limited company and a Non-Deposit Taking Non-Banking Financial Company (NBFC-ND) registered as an NBFC-MFI as per RBI guidelines.
- The company provides microfinance loans to poor residents of urban, semi-urban & rural areas.
2. Member Enrollment & Their Processing
- All communications to the borrower shall be in the vernacular language or a language the borrower understands.
- Enrollment forms will include all necessary information for the borrower to make an informed decision and compare terms with other NBFCs.
- Member Enrollment in the software must be done correctly with necessary details and clear images.
- Three accepted identity proofs (Aadhaar, Ration Card, PAN Card, Voter ID) must be uploaded for each member.
- Two contact numbers are required, and OTP verification is mandatory.
- The head office will conduct pre-loan and post-disbursement verification calls.
- Members must be married, with an age limit of 18 to 58.
- Proof of own house is required; otherwise, it will be treated as a rented house.
- Details of the nominee, guarantor, and family members' income/expenditure must be duly filled.
- The active bank account number and IFSC must be verified with the passbook, and a clear photo of the passbook and recent statement must be uploaded.
3. Loan Appraisal and Pre-Disbursal Process
- The sanction letter/loan card will contain the loan amount, terms and conditions, and the annualised rate of interest in a language the borrower understands.
- Pricing-related information will be disclosed in a standardised, simplified factsheet. No amount not mentioned in the factsheet will be charged.
- The borrower's acceptance of terms and conditions will be kept on record.
- Any penal charges for late repayment will be mentioned in bold on the loan card. There is no pre-payment penalty on microfinance loans.
- The company will not introduce any additional components to the interest rate and will comply with RBI guidelines.
- A copy of the standard loan agreement will be provided to all clients at the time of sanction/disbursement.
4. Disbursement of Loans, Including Changes in Terms and Conditions
- Borrowers will be notified of any changes in terms and conditions (disbursement schedule, interest rates, etc.) in a language they understand.
- Changes in interest rates and charges will be effected prospectively.
5. General
- Dhanam will not interfere in the borrower's affairs except for purposes provided in the loan agreement.
- In case of a request to transfer a borrower's account, consent or objection will be conveyed within 21 days.
- For loan recovery, Dhanam will only resort to legally available remedies and will not use undue harassment.
- Staff will be adequately trained to deal with customers appropriately.
- The Fair Practice Code (FPC) will be displayed in the vernacular language at all offices and on the website.
- Field staff are trained to inquire about existing debt, explain procedures, and record minutes properly.
- Minimum, maximum, and average interest rates will be displayed at all offices and on the website.
- Dhanam is accountable for inappropriate behaviour by its staff or outsourced agencies and ensures timely grievance redressal.
6. Grievance Redressal
- A grievance redressal mechanism is established to resolve disputes.
- A suggestion and complaint register is available at all branches.
- Clients have access to higher-level staff (Branch Manager, Area Manager, etc.) to discuss grievances.
- Clients can call the service helpline at +91 73050 22272 or +91 73050 22272.
- Grievances will be addressed within 48 hours to a week.
- If not satisfied, clients can approach the Nodal Officer: Mr. A Gopinath, Phone: +91+91 73050 22272, Email: contact@dhanam.finance.
- If the complaint is not resolved within a month, the client may appeal to the Officer-in-charge of the Regional Office of DNBS of RBI in Chennai.
7. Disclosures in Loan Agreement/Loan Card
- Loan documents will be in a standard format, preferably in the vernacular language.
- The document will disclose all terms, pricing (interest, processing charge, insurance premium), and a no-penalty clause for delayed payment.
- It will confirm that no Security Deposit/Margin is collected and a borrower cannot be a member of more than one SHG/JLG.
- The loan card will clearly identify the borrower, provide a simplified factsheet on pricing, and detail the grievance redressal system.
8. Collection Process and Procedures
- Centre meetings will be conducted at the scheduled date and time.
- All collections and member attendance will be recorded.
- Collections are to be posted in the software immediately at the centre.
- Physical receipts should be pasted in the centre meeting note.
- Overdues and collection delays must be communicated to Branch and Area Managers.
9. Non-Coercive Methods of Recovery
- Recovery will be made at a designated central place. Recovery at the borrower's residence/work is only permitted if the borrower fails to appear at the central place on two or more successive occasions.
- Harsh methods are forbidden, including: threatening language, calling before 9:00 a.m. and after 6:00 p.m., harassing relatives, or using violence.
10. Engagement of Recovery Agents
- The company does not employ recovery agents.
11. Periodic Review
- The Board of Directors will periodically review compliance with the Fair Practices Code and the functioning of the Grievances Redressal Committee.
12. Content on the Website
- Appropriate disclosure regarding this Policy will be made on the Company website, www.kiaramfi.com, and updated whenever there is a change.
13. Responsibilities for Outsourced Activities
- The company shall be accountable for inappropriate behaviour by employees of the outsourced agency and shall provide timely grievance redressal.
Notes
In compliance with the guidelines on 'Fair Practices Code', Dhanam shall publish and disseminate the Fair Practices Code in English on the website of the Company, and any borrower, client or stakeholder who wishes to obtain the same in vernacular language may request the Company to provide a translation thereof.
FAQs
The Fair Practice Code is a set of guidelines that ensures transparent and fair lending practices by Dhanam, promoting responsible lending and protecting borrower rights in accordance with RBI regulations.
Interest rates are determined based on RBI guidelines and are clearly communicated to borrowers in their preferred language. Any changes in rates are implemented prospectively with proper notification.
We have established a comprehensive grievance mechanism with complaint registers at all branches. Complaints are resolved within 48 hours to one week, and customers can escalate to our Grievance Officer if needed.
No, all charges including interest rates, processing fees, and insurance premiums are clearly disclosed in the loan agreement. We do not collect any security deposits or margins from borrowers.
Collections are conducted at designated center locations during scheduled meetings. We strictly prohibit threatening language, calls outside business hours (9 AM to 6 PM), or harassment of relatives.
The Fair Practice Code is displayed at all our offices and on our website in vernacular languages. Customers can request translated copies if needed.