The Bank has adopted following Fair Practice Code for its lending activities.

The Bank has adopted following Fair Practice Code for its lending activities.

  1. Application and processing of loans : Standard schedule of fee/ charges relating to the loan application depending on the segment to which the accounts belong will be made available to all the prospective borrowers in a transparent manner, along with the loan application, irrespective of the loan amount. Likewise, amount of fee refundable in the event of non-acceptance of the application, prepayment options and any other matter which affects the interest of the borrower will also be made known to the borrower at the time of application. The Bank will advise applicant about what information/ documentation is required with respect to the identity, address, employment, etc. and any other document that is stipulated by statutory authorities, in order to comply with legal and regulatory requirements. The Bank shall give acknowledgement for receipt of all loan applications. All loan applications will be disposed of within a period of 4 weeks from the date of receipt of duly completed loan applications i.e. with all the requisite information/papers. The Bank will verify the loan applications within a reasonable period of time. The Bank will convey in writing to the applicant the main reason/ reasons for rejection of the loan applications.
  2. Loan appraisal : The Bank will ensure proper assessment of credit application of the borrowers. The Bank will convey to the borrower the credit limit along with the terms and conditions thereof. We will keep the borrower’s acceptance of terms and conditions on record. The Bank will provide the copy of the loan agreement along with a copy of all enclosures quoted in the loan agreement to the borrower. Borrower would be made aware that following credit facilities are solely at the discretion of lenders: Drawings beyond the sanctioned limits Honouring cheques issued for the purpose other than specifically agreed to in the credit sanction Disallowing drawing on a borrowal account on its classification as a non-performing asset Disallowing drawing on a borrowal account on account of non-compliance with the terms of sanction. In the case of lending under consortium arrangement, the Bank and other participating lenders would evolve procedures to complete appraisal of proposals in the time bound manner to the extent feasible, and communicate their decisions on financing or otherwise within a reasonable time.
  3. Disbursement of loans : The Bank will ensure timely disbursement of loans. The Bank will give notice of any change in the terms and conditions including interest rates, service charges etc. The Bank will ensure that changes in interest rates and charges are effected only prospectively.
  4. Guarantee : The Bank will tell the person, before accepting him as guarantor about: His liability as guarantor The amount of liability he will be committing to the bank Circumstances in which he will have to pay up the liability Whether the Bank has recourse to his monies in the bank if he fails to pay up as a guarantor Whether his liabilities as a guarantor are limited to a specific quantum or are they unlimited Time and circumstances in which his liabilities as a guarantor will be discharged as also the manner in which the Bank will notify him about this.
  5. Post disbursement supervision : Borrower would be made aware of the submission schedule of various stock statements/ financial accounts etc to the Bank and the penalties, in case of default by the borrower. Borrower would be made aware of the stock audit/ credit rating etc to be completed by the external agencies and the details of cost to be borne by him. The Bank will give notice to the borrowers before taking a decision to recall/ accelerate payment or performance under the agreement or seeking additional securities. The Bank will release all securities on receiving payment of loan or realization of loan subject to any legitimate right or lien for any other claim the Bank may have against borrowers. If such right of set off is to be exercised, the Bank will give notice about the same to the borrower with full particulars about the remaining claims.
  6. General : The Bank will refrain from interference in the affairs of the borrowers except for what is provided in the terms and conditions of the loan sanction documents (unless new information, not earlier disclosed by the borrower, has come to the notice of the lender) The Bank will not discriminate on grounds of sex, caste and religion in the matter of lending. In the matter of recovery of loans, the Bank will not resort to undue harassment such as persistently bothering the borrowers at odd hours, etc. In case of receipt of request for transfer of borrowal account, the Bank will convey consent or otherwise within 21 days from the date of receipt of request.
  7. Grievance Redressal Mechanism : In case of complaints received, the branch would report the matter with full details within 7 days from date of receipt, to Head Office, who would take all necessary steps to redress and resolve the grievance/dispute, within a maximum period of 30 days.