Eduvanz

Fair Practices Code

Eduvanz Financing Private Limited

Regd. Office: 801, Jai Antriksh,

Makwana Road, Marol, Andheri East,Mumbai 400059


+91-22-49733674

The Reserve Bank of India (“RBI”) in its circular DNBS (PD) CC NO.80/03.10.042 /2005- 06, dated, 28 September 2006, issued guidelines on Fair Practices Code (“FPC”) for all Non-Banking Financial Companies (“NBFCs”) to be adopted while doing lending business. Pursuant to aforesaid circular, The Board of Directors (“BOD”) of Eduvanz Private Limited (“Company”) have adopted a Fair Practices Code (“FPC”) for the Company.

The guidelines include general principles on adequate disclosures on the terms and conditions of a loan and also adoption of a non-coercive recovery method. All the circulars/notifications in this regard have been consolidated vide Master Circular – Fair Practices Code (circular number DNBR (PD) CC.No.054/03.10.119/2015-16) dated July 1, 2015.

The FPC, as adopted herein below, is compliant with the guidelines on Fair Practices Code for NBFCs as contained in the aforesaid RBI Circular.

The Company’s business will be conducted in accordance with the prevailing statutory and regulatory requirements, with due focus on efficiency, customer-orientation and corporate governance principles. In addition, the company will adhere to the FPC in its functioning.

The Company promises to adopt all the best practices directed by RBI from time to time and shall make the necessary amendments to the FPC to fulfill the prescribed standards.

The Company is engaged in the business of providing education finance/loan to all deserving and needy candidates/borrowers without any discrimination on the basis of race, caste, colour, religion, sex, marital status, age or handicap so as to be fair and reasonable in all customer dealings. The loan is provided to the candidates at z ero percent interest so that they can easily pursue their dream career without any interest burden.

The FPC has been developed to:

  • Ensure fair practices by setting minimum standards in dealing with borrower(s)
  • Ensure greater transparency so that the borrower(s) can have a better understanding of what they can reasonably expect of the services
  • Develop a cordial relationship with borrower(s);

The FPC applies to the all the products and services, whether they are provided by the Company across the coun ter, over the phone, by post, through interactive electronic devices, on the Internet or by any other method (currently offered or will be introduced at a future date).

Considering the abovementioned RBI guidelines, The FPC applies to the following areas:

Applications for Loans and their Processing

- All communications to the borrower shall be in the vernacular language or a language as understood by the borrower.

- Loan application forms would include necessary relevant information namely the interest rate applicable, fees/charges payable for processing, pre-payment & charges (if any), & any other matter 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.

- For determining the rate of interest applicable to the borrower/s, reliance shall be placed on a number of factors namely profile of the borrower/s viz. academic background of the student availing the loan, course selected, college in which admission is sought, cost of funds, financial strength of the co- borrower/s, security/collateral offered and any other such factors as the company may deem fit.

- For determining the rate of interest applicable to the borrower/s, reliance shall be placed on a number of factors namely profile of the borrower/s viz. academic background of the student availing the loan, course selected, college in which admission is sought, cost of funds, financial strength of the co- borrower/s, security/collateral offered and any other such factors as the company may deem fit.

- Loan application forms would indicate the documents required to be submitted with the application form.

- The Company would devise a system of giving acknowledgement for receipt of all loan applications. The time frame within which the loan application may be disposed of would be made known to the borrower.

Loan appraisal and terms/conditions

- The borrower would be conveyed in writing, by means of a sanction letter or otherwise in the vernacular language as understood by the borrower, the amount of loan sanctioned along with all the terms and conditions including annualized rate of interest, method of application, EMI structure and any other charges, if any, and the borrower would, in turn, accept in writing the aforesaid terms and conditions, and the said acceptance would be kept on record by the Company.

- The aforesaid rate of interest and EMI structure applicable to customers would be based on Eduvanz’s Benchmark Lending rate which in turn is dependent on factors related to the risk profile of the case which varies on account of a number of factors such as student’s academic background, employability of the selected course from a selected institute and country of study, credit history, the financial potency of the co-borrower, the repayment capability, cost(s) to Eduvanz, associated with underwriting and servicing the loan, etc.

- All the borrowers would be provided with a copy of loan agreement along with all enclosures referred in the loan agreement, in vernacular language as understood by the borrowers at the time of sanction/disbursement of loan

The loan agreement would contain, in bold, details of penal interest charged for late loan repayment.

Disbursement of loans including changes in terms and conditions

- The borrower would be given an advance notice in vernacular language as understood by the borrower as to any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges, etc.

- The said changes in interest rates and charges would be with prospective effect and a clause in this regard would be incorporated in the loan agreement.

- Decision to recall / accelerate payment or performance under the agreement would be in consonance with the loan agreement.

- The Company would 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 be having against the said borrower. In case such right of set off is to be exercised, the Company shall give notice to the borrower 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.

Co-borrower/Guarantor

A person who intends to be a co-borrower/Guarantor for a loan, he / she will be informed about:

(a) his/her liability as co-borrower;

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

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

(d) whether the Company has recourse to his/her other monies/securities in the Company if he/ she fails to pay up as a co-borrower;

(e) whether his/her liabilities as a co-borrower are limited to a specific quantum or are they unlimited; &

(f) time & circumstances in which his/her liabilities as a co-borrower will be discharged and also the manner in which the Company will notify him/her about this

The Company shall keep him / her informed of any material adverse change/s in the financial position of the borrower/s for whom he / she stands as a co-borrower.

Credit Reference Agencies

(a) When the loan is disbursed to borrower/s, the Company shall inform him / her in case the Company passes his / her account details to credit reference agencies.

(b) The Company may give information to credit reference agencies about the personal debts the borrower/s has to pay the Company if:

- the borrower/s has fallen behind with his/her payments; and

- the amount owed is not in dispute.

(c) In the above-mentioned cases, the Company shall intimate the borrower/s in writing, its intention to give information about the debts of the borrower/s to the credit reference agencies. The Company shall also explain to the borrower/s the role of credit reference agencies and how giving such information will effect the Company’s ability to get credit.

(d) We may give credit reference agencies other information about the borrower/s account, if the borrower/s has given them his/her permission to do so.

(e) A copy of the information given to the credit reference agencies shall be provided by us to a borrower/s, if so demanded.

General

- The Company will 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).

- In case the borrower requests for transfer of borrowal account, the consent or otherwise i.e. objection of the Company, if any, will be conveyed within 21 days from the date of receipt of request. Such transfer will be as per transparent contractual terms in consonance with law.

- In the matter of recovery of loans, the Company will not resort to undue harassment like bothering the borrowers at odd hours, use of muscle power for recovery of loans etc.

- The Company shall not charge foreclosure charges/ pre-payment penalties on all floating rate term loans sanctioned to individual borrowers.

Responsibility of Board of Directors

- The BOD of the Company has also laid down the appropriate grievance redressal mechanism within the Company. The mechanism ensures that all disputes arising out of the decisions of lending institutions functionaries are heard and disposed of at least at the next higher level.

- The Board of Directors have also provided for periodical review of the compliance of the FPC and the functioning of the grievances redressal mechanism at various levels of management.

Grievance Redressal Mechanism

Internal Procedure

a) The Company has established the system and procedures for receiving, registering and disposing of complaints and grievances in each of its operating branches.

b) The Board of Directors of the Company has laid down the appropriate Grievance Redressal Mechanism within the organization to resolve complaints and grievances, and would periodically review the compliance of the Fair Practices Code and the functioning of the Grievances Redressal Mechanism at various levels of management.

c) The Grievance Redressal mechanism will ensure that all disputes arising out of the decisions of the functionaries are heard and disposed of at least at the next higher level.

d) If the Borrower/s wants to make a complaint, then the borrower/s would be told where to find details of the Company’s procedure for handling complaints, fairly and quickly. The following details pertaining to complaints would be made available to the borrower/s:

  1. How to file a complaint
  2. Where a complaint can be made
  3. How a complaint should be made
  4. When to expect a reply
  5. Whom to approach for redressal
  6. What to do if the borrower/s is not happy about the outcome.

e) Grievance Redressal Procedure

In case the customer does not receive a response within the number of days specified below for each level or if the customer is dissatisfied with the output/response received from the Company, the customer may escalate the complaint to the next level as indicated below:

Level 1:

a) In case of any query/grievance, the borrower/s may contact the respective Branch Team, telephonically, by email or by visiting Branch office and register their query/complaint /grievance in the complaint register available in the branch.

b) The Company shall endeavor to send an acknowledgement to the borrower/s within two working days of the receipt of complaint/query/grievance., The Company shall also strive to provide the borrower/s with a suitable response/resolution on his complaint/query/grievance within fourteen working days.

c) In case the borrower/s is not satisfied with the resolution/respond provided by the branch team/s in due course, then he may escalate his compliant in the following manner.

Level 2:

In case the borrower/s is not satisfied with the resolution/respond provided by the branch team/s in due course, then he/she may contact our Customer Response Team. The contact details are outlined belowed:

Person in charge : Atul Sashittal

Address: 801, Jai Antriksh, Makwana Road, Marol, Andheri East, Mumbai :- 400059

Email: atul.sashittal@eduvanz.com

Telephone: 9820121156

Level 3:

In case the Borrower/s is dissatisfied with the resolution/respond provided by our Customer Response Team, then he/she may further contact our Grievance Redressal Officer. The details are outlined below:

Name of the Grievance Redressal Officer: Varun Chopra

Address: 801, Jai Antriksh, Makwana Road, Marol, Andheri East, Mumbai :- 400059 Email: varun.chopra@eduvanz.com

Phone no.: 9820051590

Level 4:

If the compliant/query/grievance is not redressed within a period of --- month or if the borrower/s is still dissatisfied with the response received from the Grievance Redressal Officer, the complainant/customer may appeal to the Officer– in- Charge of the Regional office, of the Department of Non-Banking Supervision (DNBS) of Reserve Bank of India (RBI). The contact details are outlined below:

DNBS Officer-in-Charge Mumbai Regional Office,

Address:Mumbai Regional Office, Opposite Mumbai Central Station, Near Maratha Mandir Cinema, Byculla, Mumbai 400 008.

Email:bomumbai@rbi.org.in

Phone:+91-22-24931214

For the benefit of the customers, the name and contact details of the Officer-in-Charge of the Regional Office shall be displayed on the website of Eduvanz and the notice board at its branches where business is transacted.

Grievance Redressal Officer

At the operational level, the Company will display the following information for the benefit of its customers, on the Company’s website and branches where business is transacted:

- Name and contact details (Telephone/ Mobile nos. and email address) of the Grievance Redressal Officer who can be approached by the public for resolution of complaints against the Company.

- If the complaint is not redressed within a period of 1 month, the customer may appeal to the officer-in-charge of the Regional Office of Department of Non-Banking Supervision (DNBS) of RBI (complete contact details), under whose jurisdiction the registered office of the NBFC falls.

Language and mode of communicating Fair Practice Code

The FPC will be made available in English language and a language as understood by the borrower after approval of the BOD of the Company.

Regulation of excessive interest charged by NBFCs

- The BOD of the Company has adopted an interest rate model taking into account relevant factors such as cost of funds, margin and risk premium and determine the rate of interest to be charged for loans and advances. The rate of interest and the approach for gradations of risk and rationale for charging different rate of interest to different categories of borrowers shall be disclosed to the borrower or customer in the application form and communicated explicitly in the sanction letter.

- The rates of interest and the approach for gradation of risks shall also be made available on the website of the Company or published in the relevant newspapers. The information published on the website or otherwise published should be updated whenever there is a change in the rates of interest.

- The rate of interest would be annualised rate so that the borrower is aware of the exact rates that would be charged to the account.

Complaints about excessive interest charged by NBFCs

The BOD of the Company has laid down appropriate internal principles and procedures in determining interest rates and processing and other charges.

Clarification regarding repossession of vehicles financed by NBFCs

As the Company does not offer vehicle loans, the clause of repossession of vehicles is not applicable to the Company.

- In case of financed vehicles, the Company shall have a built-in re-possession clause in the loan agreement with the borrower, which must be legally enforceable.

- To ensure transparency, the Company shall ensure that the terms and conditions of the loan agreement should also contain provisions regarding:

a. Notice period before taking possession

b. Circumstances under which the notice period can be waived

c. The procedure for taking possession of the security

A provision regarding final chance to be given to the borrower for repayment of loan before the sale / auction of the property

The procedure for sale/ auction of the property


www.eduvanz.com
CIN No-U65999MH2016PTC285244
contact@eduvanz.com