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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, M/s.Abirami Financial Services (India) 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.

(i) Applications for loans and their processing

  1. Loan application form includes necessary information like fees/charges payable for processing, the amount of such fees might be refundable in case of non acceptance of application form, prepayment options and any other matter which affects the interest of the borrower, so that a meaningful comparison with other NBFC’s can be made and informed decision can be taken by the borrowers. The loan application form indicates documents required to be submitted along with the application form.

  2. The Company would give acknowledgement for the receipt of all loan applications. The time frame within which the loan application will be disposed of would be indicated in the acknowledgement of such application forms. The loan applications will be verified within reasonable time and the company will request the borrower additional details/documents if required through prompt intimations to them.

(ii) Loan Appraisal and Terms and Conditions

The Company would ensure that the assessment of applications by borrowers would be in line with company’s policies and procedures.

The Company would convey in writing to the borrower by means of sanction letter stating the amount of loan sanctioned, terms and conditions including annualized rate of interest and method of application thereof and keep the acceptance of these terms and conditions by the borrower on its record. A copy of the loan agreement along with a copy of each of the enclosures quoted in the loan agreement will be furnished to the borrower if asked for.

(iii) Disbursement of Loan including changes in Terms and Conditions

  1. The Company would ensure timely disbursement of loans in conformity with the terms and conditions of loan sanctioned. It would give notice of any change in the terms and conditions including disbursement schedule, interest rates, service charges, repayment charges etc. It would ensure that changes in interest rates are changed only prospectively. Necessary provisions to the effect are included in the loan agreement.

  2. Decision to recall/accelerate payment or performance under the agreement shall be in consonance with the loan agreement.

  3. The Company would release all securities on repayment of all dues or on realization of outstanding amount of loan subject to any legitimate right or lien for any other claim the company may have against the borrower with prior notice to borrower. The Notice will provide full particulars about the remaining claims and the conditions under which the company is entitled to retain the securities till the relevant claim is settled/paid fully.

(iv) General

  1. The Company should refrain from interference in the affairs of the borrower except for what is 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).

  2. In case of receipt of request from borrower for transfer of borrowal account, the consent or otherwise i.e. objection by the company if any, would 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.

  3. In the matter of recovery of loan, the company would adopt legally valid processes and not resort to undue harassment or use of force viz. persistently bothering the borrower at odd hours, use of muscle power for recovery of loans etc.

(v) Grievance Redressal

Disputes arising out of decision of the company’s functionaries would be disposed of at the next higher level.

Grievance if any in connection with the code should be addressed to Mr.P.Sankaran, Executive Director with a copy marked to Mr.L.V.Anantram, Director of the company through e-mail to abi@afslindia.com or in writing.

A review of compliance of Fair practice code and the functioning of grievance redressal mechanism would be done by the Board of Directors once in 6 months.

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