Tapfin Capital Private Limited
(‘GoGreen Capital’)
1. Introduction
This Fair Practices Code (FPC) for Tapfin Capital Private Limited is framed to ensure that the company adheres to fair, transparent, and ethical practices while dealing with customers. This policy is in line with the Reserve Bank of India (RBI) guidelines and is designed to protect the interests of customers and build long-term trust.
The objective of this code is to promote responsible lending, transparency in financial products, and to provide a grievance redressal mechanism for customers.
2. Scope of the Policy
This policy applies to all the financial products and services offered by the company, including:
Business loans
Term loans, including Asset purchase loans
Working Capital
3. Transparency in Loan and Credit Products
a. Pre-Contract Information:
Loan Documentation: The company shall provide clear and transparent information about the terms and conditions of loans before entering into a formal contract. This includes loan amount, tenor, applicable interest rate, processing fees, and any other
Interest Rates: The company will disclose the method used for calculating interest rates, whether on a reducing or flat-rate basis, and ensure that all customers understand how interest is applied to their loan.
Pre-closure and Early Repayment Terms: The company will disclose the conditions related to pre-payment or foreclosure, including charges, if any.
Other Charges: The company will inform customers upfront about any additional charges such as late-payment penalties, cheque bounce charges, administrative fees,
b. Application Process:
The company will ensure that the process of loan application is straightforward, and customers are provided with all necessary information to make an informed decision.
Customers shall be advised in writing about the required documentation that the Company requires to collect from the customer to fulfil its ‘Know Your Customer’
norms and to comply with legal and regulatory requirements in force from time to time and the time it will take to process the application.
c. Clear and Simple Language:
All loan-related documents, including application forms, loan agreements, and sanction letters, will be provided in clear, simple, and understandable language.
The customer will be informed about all aspects of the loan, including financial implications and rights and duties.
4. Disclosures During Loan Sanction and Disbursement
a. Loan Agreement:
A formal loan agreement will be executed with every customer detailing the agreed- upon terms and conditions.
The loan agreement must include all terms regarding:
Loan amount
Tenor
Interest rate (fixed or variable)
Repayment schedule
Security/collateral, if any
Processing fees and other charges
Terms and conditions for pre-payment/foreclosure
b. Sanction Letter:
The company will provide a sanction letter detailing the above terms and ensure that customers receive a copy of the letter for their reference.
The customer will be asked to acknowledge receipt of the sanction
c. Timely Disbursement:
The company shall disburse the loan amount to the customer in a timely manner after approval, and customers will be notified in writing once the loan is disbursed.
d. Post Disbursement:
The company 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 the company may have against borrower. As and when 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 the company is entitled to retain the securities till the relevant claim is settled /paid.
The company shall ensure that the release of all the original movable / immovable property documents, if applicable, and removal of charges registered with any registry is completed within a period of 30 days after full repayment/settlement of the loan
In case of delay in releasing of original movable/immovable property documents or failing to file charge satisfaction form with relevant registry beyond 30 days from the date of full repayment/ settlement of loan, the Company shall communicate to the borrower reasons for such In case where the delay is attributable to the Company, it shall compensate the borrower at the rate of ₹5,000 for each day of delay.
The company shall provide an option to the borrowers for collecting such documents on full repayment, either from the banking outlet/branch where the loan account was serviced or any other office of the NBFC where the documents are available, as per her/his preference which shall be provided to her/him in the loan agreement along with the timeline of such loans.
In case of loss/damage to original movable/immovable property documents, either in part or in full, the Company shall assist the borrower in obtaining duplicate/certified copies of the movable/immovable property documents and shall bear the associated costs, in addition to paying compensation as indicated at clause (ii) However, in such cases, an additional time of 30 days will be available to the Company to complete this procedure and the delayed period penalty will be calculated thereafter (i.e., after a total period of 60 days). The compensation provided under these directions shall be without prejudice to the rights of a borrower to get any other compensation as per any applicable law.
In order to address the contingent event of demise of the sole borrower or joint borrowers, the company shall have a well laid out procedure for return of original movable/immovable property documents to the legal heirs. Such procedure shall be displayed on the website of the company.
In case of receipt of request for transfer of borrowal account, either from the borrower or from a lender which proposes to take over the account, the consent or otherwise e. objection of the company, if any, shall 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.
The company shall share/ make accessible to the borrowers, through appropriate channels, a statement at the end of each quarter which shall at the minimum, enumerate the principal and interest recovered till date, EMI/balance amount, number of EMIs/payments left and annualized rate of interest/Annual Percentage Rate (APR) for the entire tenor of the loan.
5. Interest Rates and Other Charges
a. Transparency in Pricing:
All charges, including interest rates, processing fees, administrative charges, and other costs, will be clearly communicated to the customer at the time of loan approval.
The company will ensure that interest rates are competitive and within the limits as prescribed in the applicable regulations and do not exceed what is reasonably fair based on market conditions.
Penalty, if charged, for non-compliance of material terms and conditions of loan contract by the borrower shall be treated as ‘penal charges’ and shall not be levied in the form of ‘penal interest’ that is added to the rate of interest charged on the loans.
There shall be no capitalisation of penal charges i.e., no further interest computed on such However, this will not affect the normal procedures for compounding of interest in the loan account.
The company shall not introduce any additional component to the rate of interest and company will ensure compliance to these guidelines in both letter and spirit.
The quantum of penal charges shall be reasonable and commensurate with the non- compliance of material terms and conditions of loan contract without being discriminatory within a particular loan / product category.
The quantum and reason for penal charges shall be clearly disclosed by the Company to the customers in the loan agreement and most important terms & conditions / Key Fact Statement (KFS) as applicable, in addition to being displayed on Company’s website under Schedule of Charges.
Whenever reminders for non-compliance of material terms and conditions of loan are sent to borrowers, the applicable penal charges shall be communicated. Further, any instance of levy of penal charges and the reason therefor shall also be communicated.
b. Disclosure of Changes:
In case of any change in interest rates or other charges during the tenor of the loan, the company shall inform customers well in advance – these changes would be prospective in nature.
The customer will be provided with a reasonable notice period prior to implementation of the changes.
6. Customer Grievance Redressal Mechanism
a. Grievance Redressal Officer:
The company will appoint a designated officer to handle customer complaints and ensure timely resolution.
The officer will be responsible for addressing grievances related to loan processing, repayment issues, and any discrepancies.
b. Grievance Redressal Process:
The company shall acknowledge customer complaints within 3 working
A resolution will be provided within 15 working
If the complaint cannot be resolved within this timeframe, the customer will be notified of the status and expected resolution date.
c. Escalation Procedure:
In case the customer is not satisfied with the resolution, the complaint can be escalated to senior management or the Nodal Officer.
A detailed escalation procedure will be outlined for customers to follow, ensuring that issues are handled at higher levels when necessary.
d. RBI Ombudsman Scheme:
If a customer is still dissatisfied with the resolution, the company will inform the customer about the availability of the RBI Ombudsman Scheme and the process of filing a complaint with the RBI.
The Board of Directors shall also provide for periodic review of the compliance of the Fair Practices Code and the functioning of the grievance’s redressal mechanism at various levels of management. A consolidated report of such reviews shall be submitted to the Board at regular intervals, as may be prescribed by it or by a separate Grievances Redressal Policy.
7. Recovery of Loans and Dues
a. Ethical Recovery Practices:
The company shall adopt ethical practices while recovering dues from customers and avoid practices that can be construed as harassment or intimidation.
Collection calls will be made at reasonable times, and collection agents must be professional and courteous.
b. Communication Regarding Defaults:
Customers will be notified in writing if they have missed payments, including information on late payment fees and penalties.
The company shall offer customers a reasonable period to rectify missed payments before initiating recovery actions.
c. No Harassment:
The company will not resort to any form of harassment, including verbal abuse or threats, for the recovery of dues.
Legal action, if required, will be taken after ensuring that all alternative means have been explored.
8. Confidentiality and Data Protection
a. Data Privacy:
The company will ensure the protection of customer data, and all personal, financial, and sensitive information will be kept confidential.
Customer data will not be shared with third parties without the customer’s explicit consent, except in cases where it is required by law or regulatory authorities.
b. Consent for Data Sharing:
The company will obtain customer consent for sharing data with credit bureaus, other financial institutions, or for marketing purposes.
c. Security of Data:
The company will ensure that all digital platforms and internal systems used to store customer data comply with best security practices to prevent data breaches.
9. Customer Education
a. Financial Literacy:
The company will promote financial literacy among customers, helping them understand the terms of their loans, repayment obligations, and the impact of loan products on their financial health.
The company may conduct customer education campaigns, seminars, and provide written materials to explain complex financial concepts.
b. Awareness of Rights:
Customers will be informed about their rights under the Fair Practices Code, including the right to file complaints, seek redressal, and get copies of loan documents.
10. Compliance with Regulatory Requirements
a. Adherence to RBI Guidelines:
The company will comply with all relevant RBI guidelines and regulations on fair practices, including the Non-Banking Financial Companies (NBFCs) Regulations.
Periodic reviews of this policy will be conducted to ensure continued compliance with any new or amended regulations issued by the RBI.
b. Internal Audit and Compliance Checks:
The company will conduct regular internal audits to ensure adherence to the Fair Practices Code.
Any deviations or non-compliance will be addressed promptly, and corrective actions will be taken.
11. Periodic Review of the Fair Practices Code
The company will review and update this Fair Practices Code at regular intervals, and atleast once annually, to ensure that it remains in line with the latest regulatory requirements, industry practices, and customer expectations.
12. Conclusion
The Fair Practices Code is designed to establish a framework for ensuring that the company’s relationship with its customers is based on transparency, fairness, and respect. By adhering to this code, the company aims to build long-lasting and trustworthy relationships with its customers, ensuring that their financial needs are met in a responsible and customer-friendly manner.