FAIR PRACTICE CODE 2017
In pursuance of Reserve Bank of India Circular No.DNBS.CC.PD.No. 320/03.10.01/ 2012-13 Dated February 18, 2013 revised guidelines of Fair Practices Code (FPC) for the NBFCs as detailed below be and is hereby adopted by the Company with immediate
Fair practices Code
Viiking Finance Private Limited (the Company) is a Non-Banking Finance Company registered with Reserve Bank of India (“RBI”) with COR No. B-03.00089 and to commence / carry on the business of non-banking financial institution without accepting
Objective of the Code
- To ensure that the company follows and practices fair and transparent dealings with the customers.
- Ensuring that the company’s products are compliant with relevant laws and regulations.
- To strengthen the grievance redressal mechanism of the company.
1. Applications for loans and their processing
- 1.1. All communications to the borrower shall be in the vernacular language or a language as understood by the borrower.
- 1.2. The Loan application forms of the Company 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.
- 1.3. The loan application form will indicate the documents required to be submitted along with the application form.
- 1.4. If any additional details/ documents are required, the same shall be intimated to the borrowers.
- 1.5. The Company will have a system of giving acknowledgement for receipt of all loan applications. The time frame within which loan applications will be disposed off will be indicated in the acknowledgement.
2. Loan appraisal and terms / conditions
- 2.1. The Company will convey in writing to the borrower in the vernacular language or a language as understood by the borrower by means of sanction letter or otherwise, the amount of loan sanctioned along with the 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.
- 2.2. The Company will mention the penal interest charged for late repayment in the loan agreement.
- 2.3. The Company will furnish a copy of the loan agreement preferably in the vernacular language as understood by the borrower along with a copy each of all enclosures quoted in the loan agreement to all the borrowers at the time of sanction
/ disbursement of loans.
3. Disbursement of loans including changes in terms and conditions
- 3.1. The Company will give notice to the borrower in the vernacular language or a language as understood by the borrower 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 will be incorporated in the loan agreement.
- 3.2. Decision to recall / accelerate repayment or performance under the agreement will be in consonance with the loan agreement.
- 3.3. The Company will release all securities on repayment of all dues or on realization of the outstanding amount of loan subject to any legitimate right or lien for any other claim the Company may have against borrower. If such right of set-off
is to be exercised, the borrower will be given notice about the same with 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
- 4.1. 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 Company.
- 4.2. In case of receipt of request from the borrower for transfer of borrower account, the consent or otherwise i.e. objection of the Company, if any, will 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.
- 4.3. In the matter of recovery of loans, the Company will not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans, etc. To avoid rude behavior from the staff of the
Company, the Company shall ensure that the staff are adequately trained to deal with the customers in an appropriate manner.
5. Regulation of rate of interest
- 5.1. The Board of Directors will adopt an interest rate model for determining the rate of interest to be charged on loans and advances, processing and other charges considering relevant factors such as, cost of funds, margin and risk premium,
etc. The rate of interest and the approach for gradations of risk and rationale for charging different rate of interest to different categories of borrowers shall be disclosed to the borrower or customer on request and communicated explicitly
in the sanction letter.
- 5.2. The rates of interest and the approach for gradation of risks shall also be made available on the web-site of the Company. The information published in the website or otherwise published should be updated whenever there is a change in
the rates of interest.
- 5.3. The rate of interest should be annualized rates so that the borrower is aware of the exact rates that would be charged to the account.
6. Grievance Redressal Mechanism
The company aims to provide best customer service and is consistently striving on creating a robust and efficient customer service platform. If the customers have any issues or wish to register a complaint, they can reach us at any of the following:
- STEP 1: The customer can call us and log his grievances at
or email us at email@example.com
- STEP 2: In case customer is not happy with the resolution from ‘Help Me’ team, Customers can also write their grievances at email ID: firstname.lastname@example.org
- STEP 3: Customers can also write to our Nodal Officer at email@example.com
A periodical review of the Fair Practices Code and the functioning of the grievances redressal mechanism at various levels of management would be undertaken by the Company. The Company shall abide by this Fair Practices Code following the spirit
of the Code and in the manner, it may be applicable to its business. The Company shall put the above Fair Practices Code outlined here in above on its web site, for the information of various stakeholders. The Company would also review and refine
the Code, as may be required periodically –based on its own experience and fresh guidelines, if any, to be issued by the Reserve Bank of India in this regard.
8. Pricing Policy
Viiking Finance Private Limited will follow the following internal guiding principles and interest rate model for determining Interest rate, processing fees and other charges to our customers, as laid out by the board of directors of the Company.
The Company will apply best industry practices so long as such practice does not conflict with or violate RBI guidelines. The policy of the Company for determining Interest Rates, Processing and Other Charges is as follows:
9. Repossession of assets financed
The company has a built-in possession clause in the contract / loan agreement with the borrower which is legally enforceable. To ensure transparency, the terms and conditions of the contract / loan agreement also contain provisions regarding:
- 9.1.1. Notice period before taking possession;
- 9.1.2. Circumstances under which the notice period can be waived;
- 9.1.3. The procedure for taking possession of security;
- 9.1.4. A provision regarding the final chance to be given to the borrower for repayment of loan before the sale / auction of the property;
- 9.1.5. The procedure for giving repossession to the borrower;
- 9.1.6. The procedure for sale / auction of the asset financed / given as security.
A Copy of such above terms and conditions will be made available to the borrowers in terms of circular / letter wherein it is stated that the Company will invariably furnish a copy of the loan agreement along with a copy of all enclosures quoted
in the loan agreement to all the borrowers at the time of sanction / disbursement of loans, which may form key component of such contract / loan agreement.
10.The company is not lending against collateral of Gold or any precious metal Jewelry.
The information regarding adoption of the said practice / code is made available to all the concerned.