| Fair Practice Code | ||
| Pursuant
to the Notification issued by the Reserve Bank of India by its Circulation No.RBI/2006-07/138
DNBS(PD) CC No.80/03.10.042/2005-06 dated 28th September,2006, The Motor &
General Finance Limited(MGF)(referred to as the "Company") has formulated
this Fair Practices Code to lay down the following procedures/practices in dealing
with the business transactions. This Code shall come into effect on the day the
company starts its business operations. At present it is not carrying on any business
activity in view of restrictions imposed by RBI. | ||
| 1 | Sanctioning of Proposals of Assets Financing | |
a. |
Standardised Application Forms depending on the segment to
which the hirer/lessee belongs shall include necessary information for arriving
at a meaningful comparison with the terms and conditions offered by other NBFCs.
On the basis of said information, decision can be taken by the hirer/lessee. The
Loan Application Form will Indicate the documents which are required to be submitted
with the Application Form. | |
b. | The Company would give acknowledgement for receipt of all applications for financing of assets. The time frame within which applications shall be disposed off shall not be exceeding one week and the same will be indicated in the acknowledgement. | |
c. | In accordance with the company's policy, each application will be processed and assessed. Suitable margin and the guarantee required to be given by the guarantor will be stipulated based on each proposal and amount of finance involved therein. However, the proposal will not be compromised on due diligence. | |
d. | In case of rejection of application, the same would be conveyed in writing alongwith the main reasons which led to rejection of the application. | |
e. | The company shall convey in writing to the Hirer/Lessee by means of a sanction letter, the amount of finance to be made alongwith the terms and conditions including annualized rate of interest and method of application thereof. The company shall keep the acceptance of these terms and conditions by the hirer/lessee on its record. | |
| 2 | Sanctioning and Finalizing the Proposal | |
a. | The
Company shall give notice to the Hirer/Lessee of any change in the terms and conditions
including disbursement schedule, finance charges, service charges, prepayment
charges etc. The company shall ensure that changes in finance charges and any
other charges are effected in accordance with the Hire Purchase/Lease Agreement. | |
b. | Any
decision to prepay the instalment/finalization of the total agreed amount shall
be in consonance with the Hire Purchase/Lease Agreement. However, performance
of the Hirer/Lessee in finalizing the deal will always be looked into and based
on the same, rebate, if any, will be arrived at. | |
c. | The
company shall release all securities on repayment of all dues or on realization
of the outstanding amount of agreed amount, subject to any legitimate right or
lien for any other claim the company may have against the hirer/lessee. If such
right of set off is to be exercised, the Hirer/Lessee 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. | General | |
a. | The
company shall refrain from interference in the affairs of the hirer/lessee except
for the purposes provided in the terms and conditions of the Hire Purchase/Lease
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 Hirer/Lessee for transfer of 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 dues, consistent with its policy over the years, the
company shall resort to practice which is permissible under the law. | |
4. | Grievances, if any, in connection with the Code shall be addressed to | |
| Sh. M.K. Madan | ||
| Vice President & Company Secretary | ||
| The Motor & General Finance Limited | ||
| MGF House, 4/17 B, Asaf Ali Road, | ||
| New Delhi - 110002 | ||
| by letter with copy marked to | ||
| Sh. Arun Mitter | ||
| Executive Director | ||
| The Motor & General Finance Limited | ||
| MGF House, 4/17 B, Asaf Ali Road, | ||
| New Delhi - 110002 | ||
| or by email to | ||
| mgfltd@hotmail.com | ||
| |||||||||||||||||||
| |||||||||||||||||||
| |||||||||||||||||||
| |||||||||||||||||||
|