Preamble | The Bank declares and undertakes | Fair Practices | Information Secrecy
Financial Distress | Grievance Redressal

3.1 Product Information:

• A prospective customer would be given all the necessary information adequately explaining the range of loan products available with the Bank to suit his / her needs.
• On exercise of choice, the customer would be given the relevant information about the loan product of choice.
• The Customer would be explained the processes involved till sanction and disbursement of loan and would be informed of timeframe within which all the processes will be completed ordinarily at our bank.
• The Customer would be informed of the names and phone numbers of branches and the persons whom he can contact for the purpose of loan to suit his needs.
• The Customer would be informed the procedure involved in servicing and closure of the loan taken.

3.2. Interest Rates

3.2.1. Interest Rates for different loan products would be made available through and in anyone or all of the following media, namely:

• In the Bank's Web site,
• Over phone, if Tele Banking services are provided,
• Through prominent display in the branches and at other delivery points,
• Through other media from time to time.

3.2.2Customers would be entitled to receive periodic updates on the interest rates applicable to their accounts.

3.2.3On demand, Customers can have full details of method of application of interest.

3.3 Revision in Interest Rates:

• The Bank would notify immediately or as soon as possible any revision in the existing interest rates and make them available to the customers in the media listed in Para 3.2.1.
• Interest Rate revisions to the existing customers would be notified within 7 working days from the date of change.

3.4. Default Interest/Penal Interest:

• The Bank would notify clearly about the default interest/penal interest rates to the prospective customers.

3.5. Charges:

• Alongwith the loan application form, the applicant will also be provided with a schedule of various charges such as processing fee, prepayment fee etc., payable by him.
• The Bank would make available for the benefit of prospective customers all the details relating to charges generally in respect of their retail products in the media specified in Para 3.2.1.
• Any revision in charges would be notified in advance and would also be made available in the media as listed in Para 3.2.1.
• Our Bank would clearly specify the charge amount for interest and charges wherever necessary and get a mandate for debiting the said charge amount along with the documentation.

3.6. Terms and Conditions for Lending:

• The Bank would ordinarily give an acknowledgement of receipt of loan request and if demanded by the customer, a copy of the application form duly acknowledged would also be given, as soon as the customer chooses to buy a product of or service of his choice.
• Immediately after the decision to sanction the loan, the Bank would show draft of the documents that the customer is required to execute and would explain, if demanded by the customer, the relevant terms and conditions for sanction and disbursement of loan.
• Loan Application forms, Draft documents or such other papers to be signed by a customer shall comprehensively contain all the terms and conditions relating to the product or service of his choice.
• Reasons for rejection of loan applications would be conveyed to all borrowers in writing on proforma as per Annexure-I, irrespective of the size of the loan, within a stipulated time, with the proviso that the reasons for rejections may be suitably modified on a case to case basis, where considered appropriate.
• Bank shall invariably furnish a copy of the loan agreement alongwith a copy of all enclosures quoted in the loan agreement to all the borrowers at the time of sanction / disbursement of loans.

3.7. Accounting Practices:

• The Bank would provide regular statement of accounts, unless not found necessary by the customers.
• The Bank would notify relevant due dates for application of agreed interest, penal interest, default interest, and charges if they are not mentioned in the Loan applications, documents or correspondence.
• The Bank would notify in advance any change in accounting practices, which would affect the customer before implementation.

3.8. Information Secrecy

• All personal information of the customer would be confidential and would not be disclosed to any third party unless agreed to by customer. The term 'Third party' excludes all Law enforcement agencies, Credit Information Bureaux, Reserve Bank of India, other banks/ financial and lending institutions.
• Subject to above Para, customer information would be revealed only under the following circumstances;
• If our Bank is compelled by law.
• If it is in the Public Interest to reveal the information.
• If the interest of the Bank require disclosure.

3.9. Financial Distress:

• The Bank would sympathetically reckon cases of customer's financial distress.
• Customers would be encouraged to inform about their financial distress as soon as possible.
• The Bank would adequately train the operational staff to give patient hearing to the Customers in financial distress and would try to render such help as may be possible in their view.

3.10. Grievance Redressal

• The Bank would have a Grievance Redressal Cell / Department / Centre within or outside the organisation.
• The Bank would make available all details, namely;
• Where a complaint can be made
• How a complaint should be made
• When to expect a reply
• Whom to approach for redressal of grievance etc.,

to the customers individually on demand and through the media listed in Para 3.2.1.

• Response to a complaint whether positive or negative or requiring more time for redressal would generally be given within a maximum period of four weeks from the date of receipt of complaint, unless the nature of complaint is such that requires verification of voluminous facts and figures.

Annexure-I

Format for conveying reason(s) leading to rejection of loan proposal

…………………………..

………………………………

………………………………….

………………………………………

(Addressed to the applicant)

Dear Sir,

Your loan proposal dated……………..for Rs…………..

We refer to your above noted loan proposal. After due consideration, the proposal for finance has not been approved for the under noted reason/s:

• The Bank has reservations on the loan servicing capacity of the project/venture.

• The proposal is not in tune with the credit policy / credit quality requirement of the Bank.

• You do not reside / your project is not located within the service area of the branch.

• You have failed to produce No Dues Certificate / No Objection Certificate from………………………………………………………………Branch/Bank.

Yours faithfully,

(Signature)

Head of the Branch.