The Reserve Bank of India (RBI) has issued guidelines on Fair Practices Code for Non-Banking Financial Company-P2P (NBFCs) thereby setting standards for fair business and corporate practices while dealing with their customers vide it’s Master Directions "Non-Banking Financial Company" Peer to Peer Lending Platform (Reserve Bank) Directions, 2017 dated October 4, 2017.
To ensure compliance, we have customized our policies to treat all clients consistently and fairly throughout their interactions with us. This commitment to fair lending practices encompasses every aspect of our operations, including marketing, borrower and lender onboarding, loan origination, loan processing, client servicing, and collection management services. By adhering to the FPC, we aim to build long-term relationships with our customers and stakeholders, while contributing to the overall growth and development of the financial ecosystem.
We recognize that the responsibility for implementing the FPC lies with every member of our organization. By adopting the best practices prescribed by the RBI, we not only meet the regulatory requirements but also strive to maintain the highest ethical standards in our peer-to-peer lending platform. Our dedication to these principles ensures that we operate with transparency, fairness, and integrity in serving our customers.
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Objective of this fair practice code
The objective of FPC includes :-
- Consumer Protection- To safeguard the interests of customers and ensure fair treatment in all aspects of their interactions with Moneymela, including transparent communication, fair pricing, and protection of their personal and financial information.
- Transparency- To maintain transparency in all our processes, empowering customers to have a comprehensive understanding of terms and conditions of the products and services offered by the company.
- Ethical Conduct: To adhere to high ethical standards and promote responsible lending and borrowing practices. This includes avoiding predatory practices, providing clear and accurate information, and maintaining the highest levels of integrity and professionalism.
- Compliance and Regulatory Adherence: To comply with applicable laws, regulations, and industry standards, including those set forth by regulatory authorities such as the Reserve Bank of India (RBI) or other relevant bodies. This includes maintaining proper documentation, reporting, and conducting regular audits to ensure compliance.
- Grievance Redressal: To promptly and transparently address customer grievances and concerns, Moneymela has established a dedicated grievance redressal mechanism to resolve issues raised by customers in a fair and timely manner, ensuring effective communication and customer satisfaction with a better TAT.
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Applicability of this fair practice code
The FPC will be applicable to the following broad areas :-
Loan applications and processing thereof
- All communications to the borrower shall be in English or a language as understood by the borrower.
- Loan documentation set of moneymela shall include necessary information and terms and conditions governing the loan. This comprehensive documentation enables borrowers to make informed decisions and facilitates meaningful comparisons with other NBFCs. By providing transparent and detailed loan terms, moneymela aims to empower borrowers and promote fair practices in the lending process
- The loan application form shall contain the documents required to be submitted while applying for any loan.
- Moneymela to provide the prospective borrower an acknowledgement for receipt of all loan applications through Email/SMS with an indicative time frame for disposal of the loan application.
- Disclosure of information shall be in accordance to the privacy policy of moneymela.
Loan appraisal and terms/conditions
- Moneymela to convey sanction letter in writing to the borrower in English with details of loan amount sanctioned, tenor of loan, rate of interest in APR and other charges related for servicing of loan.
- Moneymela will assess the credit worthiness of the borrower along with ability to repay the loan before approving the loan on merit basis.
- Facility agreement, sanction letter and other relevant formats shall be made available to the borrower through their registered mail ID.
- In case of rejection of any loan application, Moneymela shall communicate to the borrower through Email/SMS regarding the reason (s) for rejection thereof
Disbursement of loans including changes, if any, in terms and conditions
- Disbursement of the sanctioned loan amount shall be made available to the borrowers post successful funding consent made available from the registered lenders of Moneymela.
- Funds will be credited to the designated/registered bank account of the borrower on demand subject to compliance of all sanction terms and execution of loan documents.
- The Lenders/ Moneymela will have right to recall the loan/ accelerate payment and shall be in consonance with the terms of the facility agreement.
Post disbursement supervision/monitoring and recovery
- Moneymela shall ensure that the employees dealing with recovery of loans, to be adequately trained to deal with the borrowers in an appropriate manner. Also, the company shall ensure that such employee shall not resort to harassment, viz., persistently bothering the borrowers at odd hours, use of coercion for recovery of loans, etc. All dealing employees, at all times shall adhere to the Recovery Policy of the Company, which shall be amended from time to time.
- Moneymela shall provide a reasonable notice period to the borrowers, before recalling of the sanctioned loan or request for accelerated payment. The specific terms and conditions regarding loan recall or accelerated payment has been outlined in the facility Agreement.
Other general provisions
- Moneymela shall refrain from interfering in the affairs of the borrower except for the purposes as detailed in the terms and conditions of the facility agreement, unless any kind of new information which has not been disclosed earlier deliberately or otherwise by the borrower and the same has come to its notice.
- There shall be no discrimination in extending loan facilities on the ground of disability, gender, caste, profession, ethnicity or religion.
- In the matter of recovery of loans, the company shall resort only to remedies which are legally and legitimately available to it and will refrain from using recovery measures, like calling during odd hours of the day, undue harassment, use of muscle power for recovery of loans.
- Moneymela will ensure that the employees dealing with collection of loans are adequately trained to deal with the customers in an appropriate manner and will refrain from rude behavior while dealing with the borrowers.
- Any change in bank Mandate for collection of EMI shall be changed upon request of the borrower and will be handled by Moneymela with in 21days of receiving any request subject to applicability of charges as specified in the sanction letter and the relevant charges will be deducted while presenting EMI for the subsequent month of EMI.
- All the terms and conditions has been customized with fair manner to set the customers rights and responsibilities clearly and in plain language and the company will use legal or technical language only where ever necessary.
- Moneymela will treat all personal information of the borrowers and lenders as private and confidential.
- Moneymela respects the privacy of borrowers. The company will not use borrower/ lender s' personal information for marketing purposes unless explicitly authorized by them.
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Privacy and confidentiality
Personal information of both borrowers and lenders is considered private and confidential by Moneymela. The company is committed to handling such information in accordance with its privacy and disclosure policy. Please refer to the privacy and disclosure policy for more details.
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Grievance redressal mechanism
Moneymela has implemented a Grievance Redressal Mechanism policy to ensure the prompt resolution of customer complaints and grievances within a stipulated TAT. The company is committed to provide a prompt and effective resolution to address any concerns raised by the customers.Please refer to the Grievance Redressal Mechanism policy for more details.
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Periodic review
To enhance value and relevance for borrowers and lenders, the Board of Directors of Moneymela will conduct an annual review to ensure compliance with the Fair Practice Code adopted by the Board.
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Disclaimer
Reserve Bank of India does not accept any responsibility for the correctness of any statements or representations made or opinions expressed by the company and do not provide assurance for repayment of the loans lent through moneymela.