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Fair Practice Code

As per RBI Master Directions RBI/2011-12/26DNBS (PD) CC No. 232/03.10.042/2011-12, the following Fair Practice Code for Chinmay Finlease Limited is as follows:

1.    Applications for loans and their processing:

a.    In Chinmay Finlease Limited (herein referred as CFL), Loan application forms 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 informed decision can be taken by the borrower. The loan application form may indicate the documents required to be submitted with the application form.
b.    CFL devises a system for acknowledging receipt of all loan applications. Preferably, the acknowledgement also indicates the time frame within which loan applications will be disposed of.

2.    Loan appraisal and terms/conditions:

CFL convey in writing to the borrower by means of sanction letter or otherwise, the amount of loan sanctioned along with the terms and conditions including annualised rate of interest and method of application thereof and keep the acceptance of these terms and conditions by the borrower on its record.

It is understood that in a few cases, borrowers at the time of sanction of loans are not fully aware of the terms and conditions of the loans including rate of interest, either because the NBFC does not provide details of the same or the borrower has no time to look into detailed agreement.

Accordingly, it was advised that not furnishing a copy of the loan agreement or enclosures quoted in the loan agreement is an unfair practice and this could lead to disputes between the NBFC and the borrower with regard to the terms and conditions on which the loan is granted.

NBFCs are, therefore, advised to invariably furnish a copy of the loan agreement 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. Hence CFL follows the same practice.

3.    Disbursement of loans including changes in terms and conditions:

a.    CFL give notice to the borrower of any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges etc. IT is also been ensure that changes in interest rates and charges are effected only prospectively. A suitable condition in this regard should be incorporated in the loan agreement.
b.    Decision to recall / accelerate payment or performance under the agreement should be in consonance with the loan agreement.
c.    CFL release all securities on repayment of all dues or on realisation of the outstanding amount of loan subject to any legitimate right or lien for any other claim NBFCs may have against borrower. If such right of set off is to be exercised, the borrower shall be given notice about the same with full particulars about the remaining claims and the conditions under which NBFCs are entitled to retain the securities till the relevant claim is settled/paid.


4.    General:

a.    CFL 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).
b.    In case of receipt of request from the borrower for transfer of borrowable account, , the consent or otherwise i.e. objection of the NBFC, if any, should 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.
c.    In the matter of recovery of loans, the NBFCs should not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans, etc…

5.    The Board of Directors of NBFCs should also lay down the appropriate grievance redressal mechanism within the organization to resolve disputes arising in this regard. Such a mechanism should ensure that all disputes arising out of the decisions of lending institutions' functionaries are heard and disposed of at least at the next higher level. The Board of Directors should also provide for periodical review of the compliance of the Fair Practices Code and the functioning of the grievances redressal mechanism at various levels of management. A consolidated report of such reviews may be submitted to the Board at regular intervals, as may be prescribed by it.

6.    Fair Practices Code based on the guidelines outlined hereinabove have put in place by all NBFCs with the approval of their Boards within one month from the date of issue of this circular. NBFCs will have the freedom of drafting the Fair Practices Code, enhancing the scope of the guidelines but in no way sacrificing the spirit underlying the above guidelines. The same should be put up on their web-site, if any, for the information of various stakeholders.


Fair Practice Code for Chinmay Finlease Limited

1.    Transparency

Chinmay Finlease Limited is committed to transparency in all its dealings with customers. We believe in providing clear and concise information about our products and services to ensure that customers can make informed decisions. For example, when offering a car loan, we provide customers with a detailed breakdown of the loan amount, interest rates, processing fees, and repayment schedule upfront.

2.    Non-discriminatory Practices

At Chinmay Finlease Limited, we treat all our customers fairly and without discrimination. We do not discriminate based on factors such as gender, religion, caste, or ethnicity. For instance, when assessing loan applications, we evaluate each applicant based on their creditworthiness and financial stability, without any bias or prejudice.

3.    Customer Privacy

We respect the privacy of our customers and are committed to maintaining the confidentiality of their personal information. For example, we ensure that customer data is stored securely and is only accessed by authorized personnel for legitimate business purposes. We do not disclose customer information to third parties without the consent of the customer, except as required by law.

4.     Disclosure of Interest Rates and Charges

Chinmay Finlease Limited believes in full transparency when it comes to disclosing interest rates and charges associated with our financial products and services. For instance, when offering a personal loan, we provide customers with a clear breakdown of the interest rates, processing fees, pre-payment charges, and any other applicable fees upfront, ensuring that there are no hidden costs.

5.    Dispute Resolution Mechanism

We have established a transparent and effective dispute resolution mechanism to address customer complaints and grievances in a timely manner. For example, customers can lodge complaints through our dedicated customer service helpline, website, or branch offices. We ensure that all complaints are thoroughly investigated and resolved within a reasonable timeframe, keeping the customer informed throughout the process.

6.    Ethical Collection Practices


Chinmay Finlease Limited adheres to ethical collection practices and strictly prohibits any form of harassment or coercion of customers during debt collection activities. For instance, our collection agents are trained to engage with customers in a respectful and professional manner, adhering to all relevant laws and regulations governing debt collection.

7.    Compliance with Regulatory Guidelines


We are fully committed to complying with all applicable laws, regulations, and guidelines issued by the regulatory authorities. For example, we ensure that our lending practices comply with the guidelines set forth by the Reserve Bank of India (RBI) and other regulatory bodies governing the non-banking financial sector.

8.    Customer Education and Awareness


Chinmay Finlease Limited undertakes initiatives to educate customers about financial products and services to help them make informed decisions. For example, we organize financial literacy workshops and seminars to educate customers about topics such as budgeting, saving, and investing. We also provide educational materials on our website and mobile app to empower customers with the knowledge they need to manage their finances effectively.

9.    Fair Treatment of Customers

We believe in treating all our customers fairly and with respect in all our dealings. For example, we ensure that our marketing and sales practices are honest and transparent, and that our customer service representatives are trained to provide prompt and courteous assistance to all customers, regardless of their background or circumstances.


10.    Review and Revision of the Code


Chinmay Finlease Limited regularly reviews and updates its Fair Practice Code to ensure its effectiveness and relevance in light of changing business practices and regulatory requirements. For example, we conduct periodic audits and assessments to identify areas for improvement and make necessary revisions to our code accordingly.

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