FAIR PRACTICE CODE OF KTDFC

1. All loan application forms shall contain 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.

2. All loan application received by the Company shall be given an     acknowledgement slip.

3. The time frame within which the loan applications shall be disposed of     are given as under:

For Institutional Loans, the disbursement shall be done only after the approval of the Board.

4. Loan appraisal and terms / conditions

The Company shall convey in writing to the borrower, the amount of the loan sanctioned along with the terms and conditions including annualised rate of interest and method of application thereof and keep the acceptance of these terms and conditions by the borrower on its record.

5. Disbursement of loans including changes in terms and conditions

The Company shall give notice to the borrower of any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges etc. The Company shall also ensure that changes in interest rates and charges are effected only prospectively.

6. Post disbursement supervision

(a) Post disbursement supervision by the Company shall be constructive      and the genuine difficulties which the borrower may face, may be given      due consideration.

(b) Before taking a decision to recall/ accelerate payment or performance      under agreement or seeking additional securities, the Company shall      give notice to borrowers 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 borrower. If such right of set off is to be exercised, the borrower      shall be given the notice about the same with full particulars about the      remaining claims and the conditions under which the Company are      entitled to retain the securities till the relevant claim is settled / paid.

7. The change in the terms and conditions of the loan agreement shall be     informed to the loanees prospectively.

8. The loan application register shall be kept at the office recording the      details regarding the sale of loan applications, receipt of application,      sanction of applications and rejection of applications with reasons for      rejection.

9. Prior notice shall be given to the loanee if additional security is sought     for from them.

10. The Company has the right to set off all dues due to it from the loanee      and the prior notice of this lien of the Company be given to all parties      concerned.

11. A Grievance Redressal Mechanism shall be formulated and set up      within the organisation for effectively handling the complaints received      by the Company from various clients.

12. 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 sanction of the loan (unless new information, not earlier disclosed by      the borrower, has come to the notice of the lender).

(b) 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 i.e. objection of the Company, if any, shall be      conveyed within 21 days with the receipt of the request. Such transfer      shall be as per transparent contractual terms in consonance with law.

(c) In the matter of recovery of loans, the Company shall not resort to      harassment.

The Board of Directors of the Company shall lay down the appropriate grievance redressal mechanism within the organisation to resolve disputes arising in this regard. Such a mechanism shall ensure that all disputes arising out of the decisions of lending institutions’ functionaries are heard and disposed of at least at the next higher level. Periodical review of the functioning of the grievances redressal mechanism shall be done in every 3 months at various levels of management. Periodical review of the compliance of the Fair Practices Code shall be done by the Board of Directors in every 6 months.