Fair Practice Policy
Introduction
Shankar Fininvest Pvt Ltd is a Non-Banking Financial Company (NBFC), registered with the Reserve Bank of India (RBI) as a non-deposit taking, non-systemically important NBFC. The Company is primarily engaged in providing personal loans, MSME finance, and other financial services.
In line with the RBI guidelines on the Fair Practices Code for NBFCs, Shankar Fininvest Pvt Ltd has adopted this Board-approved policy, which outlines transparent practices to be followed while dealing with customers. This Code is designed to foster confidence, promote ethical conduct, and ensure fairness in all customer interactions.
Purpose
The purpose of this Fair Practices Code (FPC) is to:
The Code applies to all business operations of the Company and ensures equal access
to all eligible borrowers without bias based on caste, creed, religion, gender, or
any other discriminatory factor.
Definition
Loan Appraisal and Terms/Conditions
The following aspects highlight our loan appraisal process and related terms & conditions:
Loan Disbursement and Changes in Terms
The following aspects highlight our loan disbursement process and any changes in loan terms & conditions:
Post-Disbursement Monitoring
Confidentiality of Information
Fair Practice Code for Microfinance Loans
The following principles ensure transparency, borrower protection, and fairness in our microfinance operations:
a. General
- The FPC in vernacular language shall be displayed in office and branch premises, as well as on the company's website.
- Field staff shall be trained to inquire about borrower income and existing debt.
- Any borrower training offered will be free of cost.
- Minimum, maximum, and average microfinance interest rates will be prominently displayed in offices, vernacular literature, and on the website.
- The loan agreement and displayed FPC will declare the company's accountability for employee (including outsourced) behaviour and commitment to timely grievance redressal.
- No security deposit or margin will be collected from borrowers.
- A standard microfinance loan agreement, preferably in the local language, will be used.
- All loan terms and conditions will be disclosed in the loan agreement.
- The loan card will clearly show: a simplified pricing factsheet, loan terms, borrower identification, repayment acknowledgements (including final discharge), grievance redressal system and nodal officer contact details.
- Non-credit products will only be issued with the borrower’s consent, and fee structure will be communicated in the loan card.
- All entries in the loan card shall be in the vernacular language or a language understood by the borrower.
GRIEVANCE REDRESSAL MECHANISM
Shankar Fininvest Pvt Ltd shall establish a robust grievance redressal framework. Key highlights include:
Review
This Fair Practice Code (FPC) shall be reviewed annually, or earlier if required due to changes in RBI regulations or other applicable laws.
The Board of Directors shall ensure that the Code remains relevant and effective, implementing appropriate updates or modifications as necessary.
Force Majeure
In exceptional circumstances such as natural disasters, pandemics, war, or regulatory actions, the obligations under this Code may not be fully enforceable.
Nonetheless, the Company shall make its best efforts to comply with the principles and commitments of the Code to the extent possible under such conditions.
Disclaimer
All content published on our platform is for general informational purposes. Shankar Fininvest Pvt Ltd does not guarantee the accuracy or completeness of such content and disclaims liability for reliance placed upon it.
External websites linked from our platform are not endorsed or verified by us. Their policies may vary and users must exercise caution.
