Fair Practices Code
Establishing corporate standards of complete transparency, systematic fairness, regulatory ethics, and total borrower accountability across all credit lines.
Introduction
RB Credits Pvt Ltd ("the Company") is a Private Limited Company registered with the Reserve Bank of India (RBI) as a Non-Banking Financial Company (NBFC) – Base Layer (BL) as per Master Direction – Reserve Bank of India (Non-Banking Financial Company – Scale Based Regulation) Directions, 2023 dated 19th October 2023, and as amended till date.
The Company is engaged in providing loan against property, home loan, and vehicle loan facilities to eligible borrowers. The Company is committed to ensuring responsible lending, fairness, transparency, and integrity in all its dealings with customers.
The Company adheres to the principles of the Fair Practices Code prescribed by the Reserve Bank of India for NBFCs and ensures that lending and recovery practices are conducted in a fair, ethical, and transparent manner.
Core Corporate Values
Transparency
Clear and full disclosure of terms, conditions, charges, and borrower obligations.
Integrity
Honest, fair, and ethical dealings with all operating retail stakeholders.
Responsiveness
Understanding borrower needs and providing suitable loan products swiftly.
Professionalism
Maintaining high standards of structural conduct in every single transaction.
Respect
Treating every single borrower with absolute personal dignity and structural fairness.
Objectives of the Fair Practices Code
- To provide customers with clear information about loan products, interest rates, charges, terms, and conditions.
- To ensure that borrowers are not subjected to unfair practices, misrepresentation, or coercive collection methods.
- To promote fair treatment of borrowers with respect and dignity at all times.
- To establish a grievance redressal mechanism to address customer complaints in a timely and transparent manner.
- To monitor and review the effective implementation of this Code across all business functions.
Guidelines on Fair Practices Code
1. Loan Application & Appraisal
- Loan application forms shall be in a language understood by the borrower.
- Borrowers shall be provided with an acknowledgement for loan applications, indicating the expected timeframe for processing.
- Forms shall clearly mention required documents and key terms such as interest rate, processing fees, valuation charges, insurance premium (if applicable), and foreclosure/prepayment policy.
- Every loan will be appraised based on the borrower’s income, repayment capacity, credit bureau reports, and property/vehicle documents.
- The Company shall ensure proper due diligence and verification before loan sanction.
2. Loan Terms & Conditions
- The sanction letter shall clearly state the loan amount, tenure, rate of interest (fixed or floating), processing fees, charges, security details, and repayment schedule.
- Borrowers will be given a copy of the loan agreement and all relevant enclosures.
- Any change in interest rates or charges will be communicated in advance and will be prospective in effect.
- Foreclosure/prepayment charges, if applicable, will be as per RBI guidelines and disclosed upfront.
- Penal interest, if charged, will be applied only on the overdue amount and not on the entire outstanding loan.
3. Disbursement & Disclosures
- Loans shall be disbursed as per pre-determined timelines and only after execution of the necessary loan agreements and completion of formalities.
- The effective rate of interest, processing fees, valuation charges, and other applicable fees will be disclosed and displayed on the sanction letter.
- Loan documents shall include all terms and conditions in a simple, understandable format.
- A fact sheet shall be provided to borrowers outlining key details such as loan amount, tenure, EMI schedule, security details, charges, and grievance redressal contact details.
- The privacy of borrower data will be respected at all times.
4. Fair Practices & Ethical Behavior
- The Company shall treat all borrowers fairly, without discrimination.
- Loan facilities will be extended based on creditworthiness and repayment capacity.
- The Company shall not bundle other products with loans, except credit insurance if agreed by the borrower.
- Repossession policy for vehicle loans and enforcement of security for property loans will be transparent, fair, and clearly mentioned in loan agreements.
09:00 AM
Earliest Collection Contact Time
06:00 PM
Latest Collection Contact Time
4 Weeks
Max Grievance Resolution Window
100%
Non-Discriminatory Assistance
Collection Practices & Governance
Crucial Protocols on Enforcement & Data Secrecy
- Collection Standards: Employees shall use courteous language and respect borrower sensitivities during loan recovery. No calls or visits for collection will be made before 9:00 AM or after 6:00 PM.
- No Coercion: The Company shall not adopt coercive methods such as harassment, threats, or use of force. In case of repossession of vehicles or enforcement of property security, due legal process will be followed.
- Privacy Framework: Borrower data shall be treated as confidential and shared only with credit bureaus, regulators, or as required by law. Staff shall be trained to maintain secrecy and fidelity regarding borrower information.
- Inclusion Policy: The Company shall not discriminate against borrowers with disabilities and will provide reasonable assistance to facilitate their access to loan products and services.
Grievance Redressal
A Grievance Redressal Officer has been appointed, whose contact details are displayed at branches and on the website. Complaints will be acknowledged promptly and resolved within four weeks.
Board Monitoring
The Board of Directors shall periodically review compliance with this Code. A consolidated report on compliance metrics and pending grievances is placed before the Board on a quarterly basis.
FPC Dissemination
This Fair Practices Code shall be displayed explicitly to the borrower before disbursement. Internal staff are continuously trained on FPC parameters, code of conduct, and humane recovery loops.
Ombudsman Escalation Protocol
Borrowers not satisfied with the structural resolution provided by our branch channels may formally escalate their complaints to higher oversight authorities, including the RBI Ombudsman framework.
