Fair Practice Code

  • 1. OBJECTIVES AND APPLICATION

    1. Introduction, Objectives and application:

     

    Magma Housing Finance Limited (A Public Company with Unlimited Liability) (hereinafter referred to as “the Company” or “we”) have framed and adopted a voluntary code, which sets the principles for fair practice standards when dealing with individual customers. The Code has been prepared based on the Guidelines issued by National Housing Bank on Fair Practices Code.

     

    1.1 Objectives of the Fair Practices Code- The Code has been adopted to:

    a) To promote good and fair practices by setting minimum standards in dealing with customers;

    b) To increase transparency so that the customers can have better understanding of what they can reasonably expect of the services;

    c) To encourage market forces through competition, to achieve higher operating standards;

    d) To promote a fair and cordial relationship between customers and the Company;

    e) To enable customers to have better understanding of what they can reasonably expect of the services offered by the Company;

    f) To foster confidence in housing finance system.

    g) To ensure compliance with legal norms in matters relating to recovery of advances;

    h) To reckon with market forces, through competition and strive to achieve higher operating standards;

    i) To strengthen mechanisms for redressal of customer grievances;

    1.2 Application of the Code:

     

     This Code applies to all the products and services offered by the Company, whether over the phone, across the counter, on the internet or by any other means. It shall also apply to all the employees of the Company

     
  • 2. DISCLOSURES, ADVERTISING, MARKETING AND SALES

    We shall help the customer understand how our product works by:

     

    a)   Ensuring that all advertising and promotional material is clear, and not misleading.

     

    b)   In any advertising in any media and promotional literature that draws attention to a service or product and includes a reference to an interest rate, indicating whether other fees and charges will apply and that full details of the relevant terms and conditions are available on request.

     

    c)   Providing information on interest rates, common fees and charges through any one or more of the following media -

                                           i.     Putting up notices at all our branches;

                                          ii.     Through telephone or helplines;

                                         iii.     On the Company's Website, as and when launched;

                                         iv.     Through designated staff / helpdesk

    In addition to the above, we shall, through Tariff Sheet and/or Schedule of Charges, transparently disclose to the borrower all information about fees/ charges payable for processing the loan application, the amount of fees refundable if loan amount is not sanctioned/ disbursed, pre-payment options and other charges, If any, penalty for delayed repayment, if any, conversion charges for switching loan from fixed to floating rates or vice-versa, existence of any interest re-set clause. Thus, we will disclose ‘all the cost’ inclusive of all charges involved in processing/sanction of loan application in a transparent manner. It shall also be ensured that such charges/fees are non-discriminatory.

    If we avail of the services of third parties for providing support services, we shall require that such third parties handle customer's personal information (if any available to such third parties) with the same degree of confidentiality and security as we would.

     

    d)      We may, from time to time, communicate to customers various features of the products availed by them. Information about our other products or promotional offers in respect of products / services, may be conveyed to the customers only if he / she has given his / her consent to receive such information / service either by mail or by registering for the same on the website or on the Customer Service Number.

     

    e)      Prescribe a Code of Conduct for our Direct Selling Agents (DSAs), whose services are availed to market products which, amongst other matters, require them to identify themselves when they approach the customer for selling our products.

     

    f)        In the event of receipt of any complaint from the customer that our representative/ courier or DSA has engaged in any improper conduct or acted in violation of this Code, appropriate steps shall be initiated to investigate and to handle the complaint and to make good the loss.

     
  • 3. LOANS

    3.1. Applications for loans and their processing

     

    a)      At the time of sourcing a loan product, we shall provide information about the interest rates applicable, as also the fees / charges, if any, payable for processing, pre-payment options and charges, if any, and any other matter which affects the interest of the borrower, so that a meaningful comparison with the terms and conditions offered by other Housing Finance Companies (HFCs) can be made and informed decision can be taken by the borrower.

     

    b)      The Company shall issue an acknowledgement receipt for all loan applications. Loan applications shall be disposed of within 15 days or such extended time as may be mutually agreed between the borrower and the Company from the date of receipt of the application form complete in all respects.

     

    3.2. Loan appraisal and terms/conditions

     

    a)      Normally all particulars required for processing the loan application shall be collected by us at the time of application. We shall keep the customer informed that he would be contacted immediately again, in case we need any additional information,

     

    b)      The customer would be informed by means of a written sanction letter of the amount of loan sanctioned or otherwise, the amount of loan sanctioned along with all terms and conditions including annualized rate of interest, method of application for drawal of loan amount, prepayment charges etc. and keep the written acceptance of these terms and conditions by the borrower on our record;

     

    c)      We shall furnish a copy of the loan agreement along with a copy each of all enclosures quoted in the loan agreement to every borrower at the time or after disbursement of loans;

     

    3.3. Communication of rejection of Loan Application

     

    If we are not in position to provide the loan to the customer, we shall communicate in writing the reason (s) for rejection.

     

    3.4. Disbursement of loans including changes in terms and conditions

     

    a)      We shall disburse the loans in accordance with the disbursement request made by the customer or the disbursement schedule given in the Loan Agreement/ Sanction Letter;

     

    b)      We shall give notice to the borrower of any change in the terms and conditions including changes in terms & conditions relating to disbursement schedule, interest rates, service charges, prepayment charges, other applicable fee/ charges etc. We shall also ensure that changes in interest rates and charges are effected only after notification to the customer. A suitable condition in this regard shall be incorporated in the loan agreement.

     

    c)      If such change in terms & conditions is to the disadvantage of the customer, he/she may within 60 days and without notice close his / her account or switch the loan account without having to pay any extra charges or interest.

     

    d)      Decision to recall / accelerate payment or performance under the agreement or seeking additional securities, shall be in consonance with the loan agreement.

     

    e)      We shall release all securities on repayment of all dues or on realization of the outstanding amount of loan subject to any legitimate right or lien for any other claim the Company 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 the Company is entitled to retain the securities till the relevant claim is settled /paid.

     

    3.5. Guarantors

     

    When a person intends to be Guarantor for a loan, he / she shall be informed about:

     

    a)      his / her liability as guarantor;

    b)      the amount of liability he / she will be committing himself / herself to the Company;

    c)      circumstances in which we will call on him / her to pay up his / her liability;

    d)      whether his / her liabilities as a guarantor are limited to a specific quantum or are they unlimited; and

    e) any deterioration in the financial condition of the customer shall be adequately communicated to the guarantor.

     

    time and circumstances in which his / her liabilities as a guarantor will be discharged as also the manner in which we will notify him / her about this; 

     
  • 4. PRIVACY AND CONFIDENTIALITY

    4.1. Personal Information

     

    We shall treat the personal information of customer even when the customer is no longer a customer as private and confidential. We will not reveal the data or information of customer to anyone including other companies in the group except when:

     

    a.      Required by law

    b.      Duty towards public to reveal information

    c.      Our interest requires giving information

    d.      With customers permission

    e.      If we are giving a reference about customer to Companies in the group with the prior written permission of the customer.

    f.       We will inform the customer about his rights/liabilities under the Laws of India for accessing the personal records that we hold about him/her.

    g.      We will not use customer’s personal information for marketing purposes unless the customer specifically authorizes us to do so.

    h. In case customer wants to stop the marketing related communications by the Company, he shall submit a request in writing at any of our branch.

     

    4.2. Credit Reference Agencies

     

    a)      Loan agreement shall entail the circumstances under which Company will pass on the account details to credit reference agencies, Govt. or Statutory bodies.

    b)      We may give information to credit reference agencies about the personal debts the customer owes us if:

    i.he customer has fallen behind his/her payments

    ii The amount owed is not in dispute

    iii. The customer has not made proposal following our formal demand for repayment of dues.

    c) We shall intimate the customer in writing in such a case. At the same time, we shall explain to the customers the role of credit reference agencies and the effect the information they provide can have on customer’s ability to get credit.

    d) We shall provide relevant information given to credit reference agencies or to the govt. /statutory body if demanded by the customer, provided same is not barred by the respective agency explicitly

     
  • 5. COLLECTION OF DUES

    5.1 When the loans are given, we shall explain to the customer the repayment process by mentioning amount, tenure and periodicity of repayment in the welcome letter. However, if the customer does not adhere to repayment schedule, a defined process in accordance with the laws of the land shall be followed for recovery of dues. The process will involve reminding the customer by sending him / her notice or by making personal visits and / or repossession of security, if any.

     

    5.2  Our collection policy/ process shall be built on courtesy, fair treatment and persuasion. We believe in fostering customer confidence and long-term relationship. Our staff or any person authorized to represent us in collection of dues or / and security repossession shall identify himself / herself and display the authority letter issued by us and upon request, display his / her identity card issued by the Company or under authority of the Company.

     

    5.3  All the members of the staff or any person authorized to represent us in collection and / or security repossession shall follow the guidelines set out below:

     

    a)   Customer would be contacted ordinarily at the place of his / her choice and in the absence of any specified place at the place of his / her residence and if unavailable at his / her residence, at the place of business / occupation.

    b)   Identity and authority to represent the Company shall be made known to the customer at the first instance.

    c)   Customer's privacy would be respected.

    d)   Interaction with the customer shall be in a civil manner.

    e)   Our representatives shall contact the customers between 0700 hrs and 1900 hrs, unless the special circumstances of the customer's business or occupation require otherwise.

    f)     We will endeavor to consider the customer's request to avoid calls at a particular time or at a particular place and such requests shall be honoured, as far as possible.

    g)   A tracker with time and number of calls and gist of conversation would be maintained.

    h)   All assistance would be given to resolve disputes or differences regarding dues in a mutually acceptable and in an orderly manner.

    i)     During visits to customer's place for dues collection, decency and decorum shall be maintained.

    j)     Inappropriate occasions such as bereavement in the family or such other calamitous occasions would be avoided for making calls / visits to collect dues.

     
  • 6. COMPLAINTS AND GRIEVANCES

    6.1  We shall tell the customer the Customer Complaint Resolution Process and turn- around time for replying to the complaint.

     

    6.2  We shall inform the customer about the procedure followed for handling complaints fairly and quickly on our website, as and when launched.

     

    6.3  If we receive the complaint in writing from the customer, we shall send him/her an acknowledgement /response within a week. If we receive a complaint over phone from a customer, we will provide the customer with a complaint reference number and keep him informed of the progress.

     

    6.4  After examining the matter, we shall send the final response to the customer or explain him reason why we need more time to respond and will try to do so within six weeks of the complaint.

     

    6.5  While attending to the customer complaints, the Company shall adhere to its Complaints Handling Policy.

     
  • 7. GENERAL

    a.      If we think necessary, we shall verify the details mentioned by the customer in the loan application by contacting the customer at his/ her residence and/or business addressees through agencies appointed for the purpose.

     

    b.      The customer is expected to co-operate if the Company needs to investigate a transaction on the customer's account and with the police/ other investigative agencies, if the Company needs to involve them.

     

    c.      The customer will be responsible for all losses if such customer acts fraudulently or without reasonable care.

     

    d.      We shall give customers information about our products and services in English normally. However, if requested by the customer, such information shall be provided in Hindi or any other appropriate local language.

     

    e.      We shall not discriminate between our customers on the basis of age, race, caste, gender, marital status, religion, or disability. However, this does not preclude us from instituting or participating in schemes framed for different sections and age groups of the society.

     

    f.        We shall process requests for transfer of a loan account, either from the borrower or from a bank/financial institution, in the normal course.

    g. Post Disbursement, customer shall be informed through welcome letter along with applicable Tariff schedule in vernacular language for customer’s proper understanding of the same

     
  • 8. MOST IMPORTANT TERMS & CONDITIONS (HINDI)