Fair Practice Code

Jay Finance Private Limited ("the Company") has adopted this Fair Practices Code (FPC) to provide transparency and fairness in its business dealings with customers. The Code is in conformity with the Guidelines on Fair Practices Code for NBFCs contained in the Reserve Bank of India circular, and sets minimum fair practice standards for the Company to follow when dealing with customers. It explains how the Company is expected to deal with customers on a day-to-day basis.

The Code has been developed with the objective of:

• Ensuring fair practice while dealing with customers.
• Promoting transparency and fairness in business dealings.
• Promoting a fair and cordial relationship with customers.
• Encouraging market forces through competition, to achieve higher operating standards.
• Ensuring customer satisfaction.

All communications to the borrower will be in the vernacular language or a language as understood by the borrower.

Loan application forms will 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 an informed decision can be taken by the borrower. The loan application form may indicate the documents required to be submitted with the application form.

Acknowledgement for receipt of all loan applications will be given. The time frame within which loan applications will be disposed of will also be indicated in the acknowledgement.

The Company shall convey in writing to the borrower, in the vernacular language, by means of a sanction letter or otherwise, the amount of loan approved along with the terms and conditions, including the annualized rate of interest and method of application thereof.

The charging of high interest/penal interest for late repayment of the loan shall be mentioned in bold in the loan agreement.

The Company shall furnish a copy of the loan agreement, where the borrower requires it, in the vernacular language as understood by the borrower, along with a copy of all enclosures quoted in the loan agreement, to all borrowers at the time of sanction/disbursement of loans.

The Company will give notice to the borrower, in the vernacular language, of any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges, etc. The Company will also ensure that changes in interest rates and charges are effected only prospectively. A suitable condition in this regard may be incorporated in the loan agreement.

Any decision to recall or accelerate payment or performance under the agreement will be in consonance with the loan agreement.

The Company will release all securities on repayment of all dues, or on realization of the outstanding loan amount, subject to any legitimate right or lien for any other claim the Company may have against the borrower. If such a right of set-off is exercised, the borrower will be given notice about the same with full particulars of the remaining claims and the conditions under which the Company is entitled to retain the securities until the relevant claim is settled or paid.

The Company will 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 lender).

In case of receipt of a request from the borrower for transfer of a borrower account, the consent or otherwise (i.e. objection, if any) will be conveyed within 21 days from the date of receipt of the request. Such transfer shall be as per transparent contractual terms in consonance with law.

In the matter of recovery of loans, the Company will not resort to undue harassment, such as persistently bothering borrowers at odd hours or use of muscle power for recovery of loans. The Company will ensure that its staff are adequately trained to deal with customers in an appropriate manner.

As a measure of customer protection, and to bring in uniformity with regard to prepayment of loans by borrowers of banks and NBFCs, the Company shall not charge foreclosure charges or pre-payment penalties on floating rate term loans sanctioned to individual borrowers.

The Board of Directors will form an appropriate grievance redressal mechanism within the organization to resolve disputes arising in this regard. Such a mechanism will ensure that all disputes arising out of the decisions of the Company's functionaries are heard and disposed of at least at the next higher level. A periodical review of compliance with the Fair Practices Code, and the functioning of the grievance redressal mechanism at various levels of management, will be carried out. A consolidated report of such reviews may be placed before the Board at regular intervals.

The Company will designate an official ("Grievance Redressal Officer") to maintain a record of customer complaints. If a complaint is received in writing from a customer, the Grievance Redressal Officer will take the complaint on record and maintain it in a database.

In case of any complaint or grievance, the customer may contact the Grievance Redressal Officer at:

Mr. Jatin Nanda
Director
49, DDA Site 1, M Block,
New Rajender Nagar,
Delhi – 110060
Contact No.: 8448299495
Email: grievance@quikloans.in

In case 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 DNBS of RBI at:

Deputy General Manager
Reserve Bank of India
6, Sansad Marg,
New Delhi – 110001
Contact No.: 011-23710538

a) The Company shall adopt an interest rate model taking into account relevant factors such as cost of funds, margin, and risk premium, and shall determine the rate of interest to be charged for loans and advances. The rate of interest and the approach for gradation of risk, and the rationale for charging different rates 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.

b) The rate of interest shall be an annualized rate, so that the borrower is aware of the exact rate that would be charged to the account.

Where applicable, the Company builds a re-possession clause into the contract/loan agreement with the borrower, which must be legally enforceable. To ensure transparency, the terms and conditions of the contract/loan agreement will also contain provisions regarding:

• The notice period before taking possession.
• Circumstances under which the notice period can be waived.
• The procedure for taking possession of the security.
• A provision for a final chance to be given to the borrower for repayment of the loan before sale/auction of the property.
• The procedure for giving repossession to the borrower.
• The procedure for sale/auction of the property.

The Company shall provide for periodical review of compliance with this Fair Practice Code and the functioning of the grievance redressal mechanism at various levels of management.

Where the Company lends to individuals against gold jewellery, it shall adopt the following, in addition to the general guidelines above. The Company shall put in place a Board-approved policy for lending against gold, covering:

• Adequate steps to ensure that RBI's KYC guidelines are complied with, and that adequate due diligence is carried out on the customer before extending any loan.
• A proper assaying procedure for the jewellery received.
• Internal systems to satisfy ownership of the gold jewellery.
• Adequate systems for storing the jewellery in safe custody, reviewing the systems on an ongoing basis, training the concerned staff, and periodic inspection by internal auditors to ensure procedures are strictly adhered to. Such loans should not be extended where there is no appropriate facility for storage of the jewellery.
• The jewellery accepted as collateral should be appropriately insured.
• A transparent auction procedure in case of non-repayment, with adequate prior notice to the borrower, free of any conflict of interest, and conducted at arm's length in all transactions, including with group companies and related entities.
• The auction should be announced to the public through advertisements in at least two newspapers, one in the vernacular language and another in a national daily.
• As a policy, the Company shall not participate in the auctions it holds.
• Gold pledged will be auctioned only through auctioneers approved by the Board.
• Systems and procedures to deal with fraud, including separation of duties of mobilization, execution, and approval.

The loan agreement shall also disclose details regarding the auction procedure.