| SUNDARAM FINANCE LIMITED |
| FAIR PRACTICES CODE (as amended on 30th March 2012) |
| Pursuant to the Notification issued by the Reserve Bank of India by its Circular No.RBI/2006-07/138 DNBS (PD) CC No.80/03.10.042/2005-06 dated 28th September 2006, Sundaram Finance Limited (referred to as the “Company”) has formulated this Fair Practices Code to lay down the following procedures/practices in dealing with the business transactions and also amended the same from time to time. This Code shall come into effect on 1st November 2006 |
| i) Applications for loans and their processing |
| (a) All communications to the borrower shall be in the vernacular language or a language as understood by the borrower. |
| (b) Loan Application Forms include necessary information, which affects the interest of the borrower, so that a meaningful comparison with the terms and conditions offered by other NBFCs can be made and informed decision can be taken by the borrower. The loan application form indicates the documents required to be submitted with the application form. |
| (c) The Company would give acknowledgement for receipt of all loan applications. The time frame within which loan applications shall be disposed of is also indicated in the acknowledgement. |
| (ii) Loan appraisal and terms/conditions |
| The Company shall convey in writing to the borrower by means of sanction letter, the amount of loan sanctioned along with the terms and conditions including annualised rate of interest and method of application thereof. The Company shall keep the acceptance of these terms and conditions by the borrower on its record. The Company shall also communicate to the borrower if the loan is rejected. The Company should mention the penal interest charged for late repayment in bold in the loan agreement. |
| The Company should furnish a copy of the loan agreement preferably in the vernacular language or a language as understood by the borrower along with a copy each of all enclosures quoted in the loan agreement to all the borrowers at the time of sanction / disbursement of loans. |
| iii) Disbursement of loans including changes in terms and conditions |
| (a) The Company shall give notice to the of any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges etc. The Company shall ensure that changes in interest rates and charges are effected only prospectively. A suitable condition in this regard be incorporated in the loan agreement. |
| (b) Decision to recall / accelerate payment or performance under the agreement shall be in consonance with the loan agreement. |
| (c) The Company shall 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 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 the Company is entitled to retain the securities till the relevant claim is settled/paid. |
| (iv) General |
| (a) The Company shall 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 the Company). |
| (b) In case of receipt of request from the borrower for transfer of borrowal account, the consent or otherwise i.e. the Company’s objection, 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. |
| (c) In the matter of recovery of loans, consistent with its policy over the years, the company shall not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans, etc. The Company’s staff are adequately trained (including not to behave rudely with the customers) to deal with the customers in an appropriate manner. The contract / loan agreement with the borrower shall contain the repossession clauses in line with RBI Circular No.RBI/2008-09/454 DNBS (PD) CC. No.139/03.10.001/2008-09 dated 24th April 2009. |
| (v) Grievances |
| if any, in connection with this Code shall be addressed to Sri P. Viswanathan, Secretary & Compliance Officer, Sundaram Finance Limited, 21, Patullos Road, Chennai 600 002 by letter with copy marked to Sri V. Srinivasan, Deputy General Manager (Legal), Sundaram Finance Limited, 21, Patullos Road, Chennai 600 002 or by email to customervoice@sundaramfinance.in |