Fair Practices Code
Applications for loans and their processing
All communications to the borrower shall be in the vernacular language or language as understood by the borrower.
Loan application forms of all the products offered by IFCI Venture are given on its website along with list of documents required to be submitted with Application Form. Click here to download the Application Form.Application forms can also be obtained from our office in person or by post.
IFCI Venture has an internal base rate and a risk adjusted return matrix taking into account relevant factors such as, borrowing cost of fund, operating cost, margin, taxes, associated risk etc. for determining the rate of interest to be charged for loans and advances. The rates of interest and the approach for gradation of risks is in the application form available on the website of IFCI Venture and the same shall be updated whenever there is a change in the rates of interest. However, if there are some risk perceptions which cannot be quantified, IFCI Venture reserves the right to adjust the interest rate accordingly. The rate of interest shall be annualized rates so that the borrower is aware of the exact rates that would be charged.
Besides the standard conditions, other conditions would also be stipulated based on the appraisal of the proposal. Additional information/support documents may be obtained from the clients in case found necessary during appraisal. Applications complete in all respects would be processed within a reasonable time frame which shall be communicated to the applicant. For evaluating the proposals, IFCI Venture has laid out an eligibility criteria as part of its general lending policy. The borrowers are mapped to the internal or the external Credit Risk rating. The proposals, that are eligible for lending, are put through the Credit and Investment Committee (CIC) and after its clearance to the Executive Committee of Directors (EC). In case the proposal is not approved, the borrower would be intimated accordingly.
The detailed standard terms & conditions would be provided if requested for by the applicant.
Further, IFCI Venture is making reasonable efforts to determine true identity and beneficial ownership of the borrowers, the nature of customer's business, reasonableness of operations in the account in relation to the customer's business etc. which in turn helps IFCI Venture to manage their risks prudently. The KYC documents are part of the application process and the KYC Form can be downloaded here.
Loan appraisal and terms/conditions
The borrowers would be conveyed in writing, by means of a sanction/offer letter or otherwise in the vernacular language as understood by the borrower, amount of Joan sanctioned along with all the terms and conditions thereof including annualized rate of interest and penal interest thereon and the method of application thereof and the borrower would, in turn, accept in writing the aforesaid terms and conditions, and the said acceptance would be kept on record by IFCI Venture.
The Loan Agreement contains, in bold, details of penal interest charged on the defaulted amount and definition of Defaulted Amount. All the borrowers would be provided with a copy of loan agreement along with all enclosures referred in the loan agreement and other loan covenants, in vernacular language as understood by the borrowers at the time of sanction/disbursement of loan.
As part of making the evaluation process more effective, IFCI Venture seeks consent from the prospective borrower and its directors/promoters for obtaining Credit Opinion from CIBIL or any other credit rating agency or Banks/FIs/NBFCs.
Disbursement of loan.s including changes in terms and conditions
The borrowers 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. Further, IFCI Venture reserves the right to reset the Interest Rate/Risk premium on such reset dates as specified in the interest rate reset clause of the Letter of Intent and Loan Agreement. Decision to recall/accelerate payment or performance under the agreement would be in consonance with the loan agreement.
IFCI Venture 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 IFCI Venture may be having against the said borrower. In case such right of set off is to be exercised, IFCI Venture shall give notice to the borrower about the same 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.
IFCI Venture would refrain from interference in the affairs of the borrower except for the purposes provided in the terms and conditions of the loan agreement and unless new information, not earlier disclosed by the borrower, has come to the notice of IFCI Venture. However, IFCI Venture reserves its right to appoint nominee director(s) on the board of the company in order to safeguard its interest as a Lender/Investor.
In case of receipt by IFCI Venture of a request from the borrower for transfer of borrower account, the consent or otherwise i.e. objection of IFCI Venture, if any, would be conveyed to the borrower within 21 days from the date of receipt of such request, and such transfer, if consented to, shall be as per transparent contractual terms in consonance with Law. However, in case where legal due diligence is required then aforesaid time limit may get extended accordingly.
In the matter of recovery of loans, IFCI Venture would not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans etc. Recovery process shall be as per Law and Loan Agreement. IFCI Venture ensures that the staffs are adequately trained to deal with the customers in an appropriate manner.
Grievance Redressal Mechanism
Smt. Indu Gupta, Chief Finance Officer, is designated as the Grievance Redressal Officer. The grievances will be addressed directly to Grievance Redressal Officer which is to be disposed of within a maximum period of 30 days from the receipt of Grievance. In case the grievance is not redressed by the Grievance Redressal Officer within 30 days, the customer may appeal, to the Officer-in-charge of the Regional Office of DNBS of RBI, under whose jurisdiction the registered office of IFCI Venture falls.
A Complaint register shall also be maintained at the Office of IFCI Venture. The register shall be accessible for registering grievances which is to be disposed of and communicated to the complainant within the same time limit mentioned above.
The name and complete contact details (Telephone nos. and e-mail address) of the Grievance Redressal Officer and of the Officer-In-charge of the Regional Office of DNBS of RBI who can be approached by the public for resolution of complaints against the company shall be displayed at the office of IFCI Venture.
Review of Fair Practice Code
In order to enhance value and relevance to the borrowers, this code would be under review from time to time. IFCI Venture would, therefore, greatly value any suggestion for improvement.