BACKGROUND 

The Reserve Bank of India (“RBI”) has specified the broad guidelines on Fair Practices Code vide its notification number RBI / 2006-07 /138 DNBS (PD) CC No. 80 / 03.10.042 / 2005-06. The Guidelines have been recently amended vide notification RBI/2012-13/416/DNBS.CC.PD.No.320/03.10.01/2012-13 dated February 18, 2013.Venus India Asset-Finance Private Limited (Formerly known as Vaishnavi Finlease Private Limited) has adopted the Fair Practices Code (“FPC” / “Code”) based on the guidelines mentioned in the above notification.The Code sets the standards for Venus India Asset-Finance Private Limited (Formerly known as Vaishnavi Finlease Private Limited) to follow while doing business with its clients.Venus India Asset-Finance Private Limited (Formerly known as Vaishnavi Finlease Private Limited) is registered with RBI as a Non-deposit accepting Non Banking Financial Company as a Loan Company.

APPLICATION OF THE CODE

Venus India Asset-Finance Private Limited (Formerly known as Vaishnavi Finlease Private Limited) is engaged in the business of providing loans to institutional and non-institutional corporate clients etc.
This Code shall be applicable to all the products and services offered by Venus India Asset-Finance Private Limited (Formerly known as Vaishnavi Finlease Private Limited).

OBJECTIVES OF THE CODE

This Fair Practice Code has been designed to:

  • Objectively state the minimum standards for dealing with clients

  • Increase transparency of commercials and service levels enabling clients to take an informed decision

  • Issue guidelines for internal staff on treating customer in a fair manner.

  • Foster client confidence in the company

KEY COMMITMENTS UNDER THE CODE

Our key commitments to our customers are as follows:

1. To Act fairly and reasonably in all our dealings with our clients:

  • Meeting the commitments and standards in this Code, for the products and services we offer, and in the procedures and practices we follow

  • Ensuring that our dealings with the client rest on ethical principles of integrity and transparency

 

2. To help clients understand how our products work by:

  • Giving information in any one or more of the following languages – Hindi, English or the appropriate local language.

  • Ensuring that our advertising and promotional literature is clear and not misleading.

  • Ensuring that clients are given clear information about our products, the terms and conditions and the interest rates/service charges, which apply to them.

 

3. Loan Proposals and their processing

  • As part of the loan process, to inter alia ensure utmost transparency, Venus India Asset-Finance Private Limited (Formerly known as Vaishnavi Finlease Private Limited) provides all necessary information to the customer along with the term sheet/LOI/proposal as the case may be including but not restricted to the nature of security required ,fees/charges, if any, payable for processing, pre-payment options, check list in respect of information/papers required for considering the loan and any other matter which effects the interest of the customer so that a meaningful comparison with the terms and conditions offered by other Non Banking Financial Companies (‘NBFCs’) can be made and an informed decision can be taken by the customer.

  • On exercise of its choice, the customer would be given the relevant information about the loan product of its choice.

  • The customer will be informed of the processes involved till sanction and disbursement of the loan and will be notified of the timeframe within which all the processes will be completed ordinarily.

  • The Company will convey in writing to the borrower by means of a LOI, 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.

  • Rate of Interest, Annualized Rate of Interest and Penal Interest would be mentioned in bold in LOI & Loan Agreement.

 

4. Loan appraisal terms and conditions

  • Venus India Asset-Finance Private Limited (Formerly known as Vaishnavi Finlease Private Limited) shall scrutinize the information submitted by the customer and additional data, if any, required should be called promptly to facilitate the expeditious disposal of the loan.

  • Venus India Asset-Finance Private Limited (Formerly known as Vaishnavi Finlease Private Limited) shall convey in writing to the customer by means of sanction letter or term sheet or LOI or any other form of written communication key terms and conditions of the proposed exposure including:

 

The amount of loan sanctioned along with the terms and conditions including annualized rate of interest,

* Details of the default interest / penal interest rates (expressed in percentage per month / annum as the case may be) and the charges payable by the customers in relation to their loan account and the method of application thereof.

* Terms of enforcement of any security.

* All other information which is relevant from the point of view of the transaction and all the parties involved.

* Wherever possible, reasons for the rejection of the loan will be conveyed to the customers.

* All the above information can be part of the loan agreement expressed in writing and shall be duly approved by the customer and countersigned by the authorized officials of Venus India Asset-Finance Private Limited (Formerly known as Vaishnavi Finlease Private Limited).

5. Timely disbursement of loans including changes in terms and conditions

* On execution of the necessary documentation and completion of formalities, Venus India Asset-Finance Private Limited (Formerly known as Vaishnavi Finlease Private Limited) shall ensure that the loan is disbursed at the earliest opportunity.

* Venus India Asset-Finance Private Limited (Formerly known as Vaishnavi Finlease Private Limited) will give notice of 2 days to the borrower of any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges etc.

* Venus India Asset-Finance Private Limited (Formerly known as Vaishnavi Finlease Private Limited) 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.

* Any decision to recall / accelerate payment or performance under the agreement will be in consonance with the loan agreement.

* Venus India Asset-Finance Private Limited (Formerly known as Vaishnavi Finlease Private Limited) will 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 Venus India Asset-Finance Private Limited (Formerly known as Vaishnavi Finlease Private Limited) may have against the 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 Venus India Asset-Finance Private Limited (Formerly known as Vaishnavi Finlease Private Limited) is entitled to retain the securities till the relevant claim is settled/paid.

* Venus India Asset-Finance Private Limited (Formerly known as Vaishnavi Finlease Private Limited) will furnish a copy of the loan agreement along with a copy of each of the enclosures quoted in the loan agreement to all the borrowers at the time of disbursement of the loans.

6. Interest rates

* Venus India Asset-Finance Private Limited (Formerly known as Vaishnavi Finlease Private Limited) has adopted an interest rate model taking into account relevant factors such as cost of funds, margin and risk premium, etc. to determine the rate of interest to be charged for loans and advances.

* The rate of interest charged will be on an annualized basis.

* The rate of Interest will be 12% – 36% p.a. (based on the prevalent interest rate scenario, market conditions and track & credit record of the borrower/group/Industry).

7. General

* Venus India Asset-Finance Private Limited (Formerly known as Vaishnavi Finlease Private Limited) 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 Venus India Asset-Finance Private Limited (Formerly known as Vaishnavi Finlease Private Limited)].

* In the matter of recovery of loans, Venus India Asset-Finance Private Limited (Formerly known as Vaishnavi Finlease Private Limited) will not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans, etc. Venus India Asset-Finance Private Limited (Formerly known as Vaishnavi Finlease Private Limited) shall ensure the staff are adequately trained to deal with the customers in an appropriate manner.

* The consent or objection of Venus India Asset-Finance Private Limited (Formerly known as Vaishnavi Finlease Private Limited) to any requests for transfer of a borrower’s accounts should be conveyed within 21 days from the date of receipt of the request.

8. Customer Protection

We will treat all our customer’s personal information as private and confidential and will not reveal details of customers dealings with us to a third party, except as provided herein and in the following exceptional cases:
a. If we have to give the information by law or to credit rating agencies/ CIBIL/CERSAI etc.

b. If there is a duty towards the public to reveal the information.

c. In case of continued default – as the company may think fit to regularise the account.

9. Regulation of Excessive Interest charged

(Notification No. DNBS. 204 / CGM (ASR)-2009 dated January 2, 2009)

* The Company has laid down appropriate internal principles and procedures in determining interest rates and processing and other charges.

* The Company has adopted an interest rate model taking into account cost of funds, margin and risk premium for determining rate of interest to be charged for loans and advances.

* The rate of interest to be charged depends much upon the gradation of the risk of borrower viz. the financial strength, business, regulatory environment affecting the business, competition, past history of the borrower etc.

10. Redressal Mechanism

* The Company has laid down the appropriate grievance redress mechanism within the organization to resolve disputes arising in this regard. Such a mechanism ensures that all disputes arising out of the decisions of the functionaries are heard and disposed of at least at the next higher level.

* The Board shall periodically review the compliance of the Fair Practices Code and the functioning of the grievances redress mechanism at various levels of management. Response to a complaint would be given within a maximum period of one month from the date of complaint, unless the nature of complaint requires verification of voluminous facts and figures.

Complaint/ Grievance Redress Mechanism

(A) In case of any complaint / grievance, the customer can make his complaint through any of the following modes :
• Email: grievancecell@venusfin.com
• Customer Walk-in at Corporate Office: A1C, 1st Floor, Sector 16, Noida-201301

In case a customer chooses to log his complaint through either email, an email/ sms will be sent to the customer, acknowledging his complaint and also informing him about his complaint number and expected time of resolution.

In case a customer chooses to log his complaint at the office he will be requested to give his complaint in writing, The Grievance Redress Officer will provide him his unique complaint number, with the expected time of resolution.

These complaints will be regularly monitored by Grievance Redress Officer to ensure effective resolution and escalation.
The company will not only ensure that all the complaints received are recorded and resolved, but also ensure an effective monitoring / escalation mechanism to the senior levels responsible so as to ensure that none of the complaints remain unresolved.

All disputes arising out of the decisions of officers in relation to the services shall be heard and disposed off at least at the next higher level.

Post resolution of the complaint, the customer will get an e-mail / sms confirming the resolution of the complaint. At this point the customer has to confirm whether the complaint has been resolved to his satisfaction or not. The complaint will be deemed closed if the customer does not respond to e-mail / SMS.

(B) The Company shall display the following information prominently, for the benefit of its customers, / places where business is transacted:
1. The name and contact details (Telephone / Mobile nos. as also email address) of the Grievance Redressal Officer i.e. Ms. Prerna Bajaj, E-Mail Id: grievancecell@venusfin.com, Contact No.91 120 6631252, responsible for logging and resolving.
2. Contact details of the Officer-in-Charge of the Regional Office of DNBS of RBI, under whose jurisdiction the registered office of the Company falls in the event of a complaint / dispute remaining unresolved for a period of one month.

In case customers are not satisfied with the resolution provided by the company, they may further approach:

Regional Director – Delhi
Department of Non Banking Supervision
Reserve Bank of India,
6, Sansad Marg, New Delhi-110001
Tel: 011- 2371 4456, 2373 9318 & 2372 0789
E-Mail ID: dnbsnewdelhi@rbi.org.in