1.Context 

Pursuant to Master Circular dated July, 01 2015, RBI/2015-16/16 DNBR (PD) CC.No.054/03.10.119/2015-16, Board of directors have approved the fair practice code of the company to protect the right of customer and make operations transparent. 

2.Application for loans and their processing 

• Local language will be mode of all communication to borrower. 
• Loan application forms provides all the information related to loan so that borrower can compare it with other organisation’s offering to them
• Loan application form clearly entails requirement of all documents from borrower
• An acknowledgement for receipt of loan application for, with the time frame within which the Loan Applications will be disposed of will be given to the borrower. 

3.Loan appraisal and terms/conditions 

• The company will give a loan sanction letter to borrower covering all terms and conditions of the loan as follows.  
  • Amount of loan sanctioned  
  • Annuliswed interest rate  
  • Processing Fees  
  • Tenure of loan  
  • Frequency of loan repayment  
  • Installment  
  • Insurance fees  
  • Any other information required (surety, security and related fees)  
• Acceptance of terms and conditions by the borrowers shall be kept on record.  
• The Company shall furnish a copy of the loan agreement along with the enclosures at the time of sanction / disbursement of loans (a written application of the borrower is required and cost to be borne by the borrower). 
• General Terms and condition of the loan products are mentioned below:
  • There is no penalty for delayed payment on micro loans.  
  • Borrowers and their spouse are covered under insurance. 
  • Prepayment allowed but without penalty. 
  • Loan is without collateral only for micro loans. 
  • Loan is repayable by weekly, fortnightly or monthly instalments at the choice of the borrower/group. 

4.Minimum Period of Moratorium

There must be a minimum period of moratorium between the grant of the loan and the due date of the repayment of the first instalment. The moratorium shall not be less than the frequency of repayment e.g. in the case of weekly repayment, the moratorium shall not be less than one week. 

5.Disbursement of loans including changes in terms and conditions 

Any change in terms and conditions including disbursement schedule, interest rates, etc. shall inform to the borrowers. 

6.Disclosures in loan agreement / loan card/Company premises 

• The Fair Practice Code will be displayed in in vernacular language, in all of the company’s offices. 
• Before lending staff of the company has to ensure that borrower is not over indebted. This will be done through information from credit information company and RBI guidelines. 
• The KYC Guidelines of RBI shall be complied with. Due diligence shall be carried out to ensure the repayment capacity of the borrowers. 
• All sanctioning and disbursement of loans should be done only at a central location and more than one individual should be involved in this function. The procedure for loan application shall be simplified and loan disbursements are done as per predetermined time. 

7.Non-Coercive Methods of Recovery 

The Company will treat every customer with respect and dignity. We provide our services regardless of caste, creed and religion. The Company will maintain a positive bias in favour of the socio-economically vulnerable segments of the society. We always maintain decency and decorum during all customer and employee interactions and also to avoid behaviour which may lead any form of threat or violence.  

The Company do not believe to use of muscle power, abusive language, persistently bothering borrowers at odd hours for loan recovery purpose.  

The loan recovery made only at a central designated place. Field staff shall be allowed to make recovery at the place of residence or work of the borrower only if borrower fails to appear at central designated place on 2 or more successive occasions.  

Appraisal/compensation/promotion for staffs, The Company gives more emphasis on areas of service and borrower satisfaction than number of loans mobilized and recovery rate. 

8.Internal Control System 

The Company constitute the Fair Practice Committee headed by one Board Member for implementation and monitoring of Fair Practice Code and Code of Conduct. The committee looks into implementation, monitoring and periodic review of Fair Practice Code and Code of Conduct throughout the organization. The Board of Directors should also provide for periodical review of the compliance of the Fair Practices Code and the functioning of the grievance redressal mechanism at various levels of management. A consolidated report of such reviews will be submitted to the Board at regular intervals. 

Constitution of the Committee  

Bhagyashri Kulkarni: Director) 

Pratima Patil (Accountant)

9.Privacy of customer data

The company complies with KYC and AML guidelines of RBI. The Company also ensures that it keeps personal information of customers strictly confidential. It is disclosed to a thirdparty subject only if: a) permission has been obtained in writing from the customer about such disclosure and b) the party in question has been authorized by the customer to obtain customer information from the company. c) it is legally required to do so d) this practice is customary amongst financial institutions and available for a closed group on a reciprocal basis (such as a credit bureau). 

10.The Pass book/loan documents reflects the following details 

• We shall explain and disclose the features of our services in a transparent & understandable manner. Further. our applications and agreements shall clearly include: 

• • Interest rate on loans 
  • Processing Fee and Insurance Premium and 
  • All other terms and conditions 

• We will make our best efforts to ensure that the loans we provide are within our customers’ capacity to repay. 
• We will not engage in any coercive methods to collect repayments. 
• We will provide customers with a grievance redressal system to register their complaints and resolve it in a timely & fair manner. 
• We respect our customers’ privacy and will treat customer information as private and confidential. 

11.Grievance Redressal Mechanism for Customers 

A grievance can be defined as any sort of dissatisfaction, which needs to be redressed in order to bring about the smooth functioning of the organization. Broadly, a grievance can be defined as any discontent of dissatisfaction with any aspect of the organization. It can be real or imaginary, legitimate or ridiculous, rated or unvoiced, written or oral; it must be however, find expression in some form of the other. 

Discontent or dissatisfaction is not a grievance. They initially find expression in the form of a complaint. When a complaint remains unattended to and concerned feels a sense of lack of justice and fair play, the dissatisfaction grows and assumes the status of grievance. 

There are three formal stages in which any grievance can be redressed. At the Company, we want to make sure that you get only the very best of service from us – service which you, our valued member, deserves. 

STEP: 1  

The Company’s members may contact our branches or write to the Branch Manager explaining the details of their issues. Branch manager will enquire the about the matter and address it properly. 

STEP: 2  

If you do not receive a response within 18 days from the channels under STEP: 1, or, if you are not satisfied with the response received, you can escalate your complain to our Chief complaint Officer Pratima Patil on directly on 8073386711 

STEP: 3  

If you are not satisfied with the response that you receive from the Branch level or channels under STEP 2, or if you do not hear from us in 8 days, you may contact the Office of the Chief Nodal Officer for a speedy investigation and fair resolution of your problem. Please quote the reference number provided to you in your earlier interaction with the Company, along with your account / loan number to help us understand and address your concern. 

You may write to: 

To,  

Mr. Bhagyshri Kulkarni  

Guardian securities Pvt ltd Near Shubham Building, near Dutta mandir, Ichalkaranji Dist: Kolhapur, Maharashtra Pin:416115  

Email: [email protected] 

• The Company installed complaints/suggestion box at all our branches at prominent places to receive written complaints. 
• The Company Head Office address with Telephone number printed in all passbooks.  

The Fair Practices Code is subject to revision based on the RBI guidelines and such revisions shall be made on requirement basis  

Last reviewed: By the Board of Directors of the Company in their meeting dated 16 April 2022  

Shivaji Yadav  

Director