IFCI Venture Funds Ltd. (IFCI Venture)
Fair Practices Code
(As per requirement of RBI Circular No. DNBS. CC.PD. No. 266/03.10.01/ 2011-12 dated March 26, 2012)
I. Applications for loans and their processing
- Standard schedule of fee/ charges relating to the loan application depending on the segment to which the borrower belong will be made available to all the prospective borrowers in a transparent manner, along with the loan application, irrespective of the loan amount. There are no fees/charges for loan application.
- Receipt of completed application forms will be duly acknowledged.
- The acknowledgement would also include the approximate date by which the applicant should call on IFCI Venture for preliminary discussions, if deemed necessary.
- Information/Documents required for processing the loan request will be intimated to the borrower at the time of application.
- All duly completed loan applications will be expeditiously processed within a period of 15 days from the date of receipt.
- In case of rejection of loan application, irrespective of category of loans or threshold limits, the same would be conveyed in writing along with the main reason(s), which led to rejection of the loan application.
II. Loan appraisal and terms/conditions
- All loan applications will be assessed in accordance with IFCI Venture's internal risk based assessment procedures. Each loan application will be assessed and suitable rate of interest, margin / securities etc will be stipulated. This will be without compromising on the due diligence of the borrower.
- The sanction of assistance along with the terms and conditions including rate of interest, Penal interest, Front-end fee & other charges thereof will be conveyed to the borrower in writing and borrower's acceptance of such terms and conditions will be obtained in writing. Such terms and conditions as have been mutually agreed upon between IFCI Venture and borrower prior to the sanction and general terms and conditions applicable to such assistance will be stipulated.
- Draft of loan documents, along with a copy of all relevant enclosures will be made available to the borrower after payment of frontend fee by the borrower. Standard sanction letter would include instances of approval, disallowance, etc. IFCI Venture shall be under no legal obligation to consider increase/additional limits/ facilities without proper review/assessment.
- In case of lending under consortium arrangement, the participating Financial Institutions / Banks would decide the timeframe to complete appraisal of the proposal and communication of the decision. IFCI Venture will abide by the decision of the consortium.
III. Disbursement of loans including changes in terms and conditions
- Disbursement of loans sanctioned will be made immediately subject to compliance of terms and conditions, creation of security as per sanctioned terms and execution of all loan documents governing such sanction.
- Any change in terms and conditions, including interest rate and other charges/ levies will be informed in writing to the borrowers in case of account specific changes and in case of others by Public Notice/IFCI Venture's website from time to time. Suitable conditions in this regard will be incorporated in the sanction letter/loan agreement.
- Changes in interest rates and charges/ levies will be effected prospectively.
- Consequent upon such changes if any, supplemental deeds / documents or writings are required to be executed, the same shall also be advised. Further, availability of facility will be subject to compliance of terms of sanction by the borrower and execution of such deeds / documents or writings in this behalf.
- Decision to recall/accelerate payment or performance or seeking additional security will be in consonance with the loan agreement.
- Before taking a decision to recall/accelerate payment or performance under the agreement or seeking additional securities IFCI Venture would give reasonable notice to the borrower.
- Security will be released on repayment of all dues or on realisation of any outstanding amount of loan subject to any legitimate right or lien for any other claim IFCI Venture may have against the borrower. If such right of set off is to be exercised, the borrower will be given reasonable notice period with full particulars about the remaining claims and the conditions under which IFCI Venture is entitled to retain the securities till the relevant claim is settled/paid.
- Post disbursement supervision would be constructive with a view to taking care of any genuine difficulties that the borrower may face.
IV. Other general provisions
- IFCI Venture would refrain from interference in the affairs of the borrower except for what is provided in the terms and conditions of loan sanction documents (unless new information, not earlier disclosed by the borrower, has come to the notice of IFCI Venture as lender). However this does not imply that IFCI Venture's right of recovery and enforcement of security under Law as well as appointment of nominee directors, where required as per the loan agreement, is affected by this commitment.
- In case of receipt of request from the borrower for transfer of borrowal account, the consent or otherwise, i.e. objection of IFCI Venture, if any, will be conveyed within 21 days from the date of such request. Such transfer shall be as per transparent contractual terms in consonance with law.
- IFCI Venture will not discriminate on the grounds of gender, caste or religion in its lending policy and activity.
- In the case of recovery, IFCI Venture would resort to the usual measures as per laid down guidelines and extant provisions and would operate within the legal framework.
- IFCI Venture may provide such credit reference agencies information about day to day running of your account as per the consent provided by you in our loan agreement terms.
In case of any complaint/grievance, the borrowers may inform AVP (Law), IFCI Venture Capital Funds Ltd, IFCI Tower, 61 Nehru Place, New Delhi - 110019 in writing for taking up the matter for redressal.
VI. Grievance Redressal
- All grievances shall be heard and disposed of by a person atleast one level higher to the person relating to whom the grievance is made. After examining the matter it would be IFCI Venture?s endeavor to provide the borrower/applicant with response within a period of 4 weeks from receipt of such complaint/grievance.
- In order to enhance value and relevance to the clients, the designated officer shall review this code and redressal of grievances periodically. We would, therefore, greatly value any suggestion for improvement.
Note : All letters, communications, notices to the borrowers /promoters /guarantors /pledgers etc. shall be made by IFCI Venture in English/vernacular language as understood by them.