Fair Practices Code

 Version 1.0

The Reserve Bank of India (Non-Banking Financial Companies – Responsible Business Conduct) Directions, 2025 (‘RBI Directions’) for Non-Banking Financial Companies (NBFCs) details the standards for fair business practices and corporate practices while dealing with their customers (as modified, amended and updated from time to time, the “Fair Practice Code”).

The Fair Practice Code of Finverra Capital Pvt. Ltd. (Finverra) covers the following areas:

1. Objectives

• To promote transparency in lending practices.
• To protect the interests of borrowers.
• To ensure ethical conduct and compliance with RBI directions.

2. Applications for Loans

• Loan application forms will include all necessary information to enable borrowers to make informed decisions.
• The form will clearly state the documents required and the process timeline.
• Acknowledgement of loan applications will be provided, with indicative timeframes for disposal.

3. Loan Appraisal and Sanction

• Loan appraisal will be based on borrower’s financial position, repayment capacity, and creditworthiness.
• In case of loan rejection, reasons will be communicated in writing.
• Sanction letters will include terms and conditions, interest rates, and repayment schedules.

4. Disbursement of Loans

• Disbursement will be made strictly as per agreed terms.
• Any changes in terms (interest rates, charges, etc.) will be communicated in advance.
• Penal interest, if applicable, will be disclosed upfront.

5. Transparency in Pricing

• Interest rates will be determined in a fair and non-discriminatory manner. This rate of interest is arrived at taking into account relevant factors such as cost of funds, margin and risk premium. Gradation of risk does not discriminate between classes of borrowers, but rather tailors the interest rate to each loan.
• All fees, charges, and penalties will be clearly disclosed before loan sanction.
• No hidden charges will be levied.

6. Recovery Practices

• Recovery will be conducted in a courteous and professional manner.
• No harassment or abusive practices will be tolerated.
• Recovery agents, if engaged, will follow due process and respect borrower dignity.

7. Grievance Redressal

• A grievance redressal mechanism has been established and is available on the Company’s website (Download the Grievance Redressal Policy PDF).
• Borrowers can approach the designated officer for complaints.
• Complaints will be resolved within a reasonable timeframe.
• Contact details of grievance officers are displayed at branches and on the company website.

8. Board Oversight

The implementation of this Code in general and the Grievance Redressal Mechanism will be subject to review and periodic monitoring of the Board of Directors of Finverra.

9. Confidentiality

Borrower information will be kept confidential and shared only with consent or as required by law.

10. Compliance

• Finverra will comply with RBI guidelines and update this Code as required.
• The Code will be displayed prominently at all Finverra’s offices and on the website.