• Sunita Finance  - Sunita Finlease

    Sunita Finlease Ltd.

    ‘Sunita Finlease Ltd.’ is a flagship company of Sunita Group established in 1985. The company is rated by CRISIL, it is a RBI registered Non-Banking Finance Company (NBFC) and is proud to be a member of CIBIL

Fair Practice Code

Pursuant to the notification issued by the Reserve Bank of India by its notification DNBR(PD) CC.No.054/03.10.119/2015-16 Dated July 01,2015, Sunita Finlease Limited (referred to as the “Company”) has formulated this Fair Practice Code to lay down the following procedures/practices in dealing with the business transactions. This periodically reviewed Code shall come into effect from 1st April 2017.
(i) Applications for loans and their processing

(a)  All communications to the borrower shall be in the language of English OR Hindi.
(b)  Loan application forms  includes necessary information 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. The loan  application  form may indicate the documents required to be submitted with the application form.
The Company would give acknowledgement for receipt of all loan applications. Preferably, the time frame within which loan applications will be disposed also be indicated in the acknowledgement.

(ii)  Loan appraisal and terms/conditions

The Company shall convey in writing to the borrower in the Hindi OR English language as understood  by the borrower by means of sanction letter or otherwise, the amount  of  loan  sanctioned   along  with  the  terms  and  conditions  including annualised  rate  of  interest  and  method  of  application  thereof  and  keep  the acceptance of these terms and conditions by the borrower  on its record.  As complaints received against NBFCs generally pertain to charging of high interest /   penal interest, Company shall mention the penal interest charged for late repayment in bold in the loan agreement.
The Company provide details of the same or the borrower has no time to look into detailed agreement. Company is furnish a copy of the loan agreement as understood by the borrower along with a copy each of all enclosures quoted in the loan agreement to all the borrowers at the time of sanction / disbursement of loans.

(iii) Disbursement of loans including changes in terms and conditions

(a) The Company shall give notice to the borrower in the HINDI OR ENGLISH language  of  any  change  in  the  terms  and conditions  including  disbursement  schedule,  interest  rates,  service  charges, prepayment charges etc. Company also ensures that changes in interest rates and charges are effected only prospectively.

(b) Decision to recall / accelerate payment or performance under the agreement shall be in consonance with the loan agreement.

(c) Company shall release all securities on repayment of all dues or on realisation of the outstanding amount of loan subject to any legitimate right or lien for any other claim the Company may have against borrower. If such right of set off is to be exercised, the borrower shall be given notice about the same with full particulars about the remaining claims and the conditions under which NBFCs are entitled to retain the securities till the relevant claim is settled/ paid.


(a) The Company shall refrain from interference in the affairs of the borrower except for the purposes provided in the terms and conditions of the loan agreement (unless information, not earlier disclosed by the borrower, has been noticed).

(b) In  case  of  receipt  of  request  from  the  borrower  for  transfer  of  borrowal account, the  consent or otherwise i.e. objection of the NBFC, 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 loans, the Company shall not resort to undue harassment viz;  persistently bothering the borrowers at odd hours, use muscle power for recovery of loans etc. As complaints from customers also include rude behavior from the staff of the companies,  the Company ensure that the staff are adequately trained to deal with the customers in an appropriate manner.

(d) As a measure of customer protection and also in order to bring in uniformity with regard to prepayment of various loans by borrowers of banks and NBFCs, it is  advised  that  Company   shall  not  charge  foreclosure  charges/  pre-payment penalties on all floating rate term loans  sanctioned to individual borrowers, with immediate effect.

(v) Responsibility of Board of Directors

The Board of Directors of Company shall also lay down the appropriate grievance redressal mechanism within the organization. Such a mechanism should ensure 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 shall also provide for periodical review of the compliance of the Fair Practices Code and the functioning of the grievances redressal mechanism at various levels of management. A consolidated report of such reviews may be submitted to the Board at regular intervals, as may be prescribed by it.

(vi) Grievance Redressal Officer

If any, in connection with this code shall be addressed to Mr Suresh Jain (Principal Officer) Phone No.(0771) 4241113; Mobile No.9893695747; email:- finance@sunitaonline.com.

(b)  If the complaint / dispute is not redressed within a period of one month, the customer may appeal to the Officer-in-Charge of the Regional Office of DNBS of RBI at Non Banking Supervision Department, Reserve Bank of India,P.B.No.32, Hoshangabad Road, Bhopal - 462011; Telephone No.: (0755) 2760545, 2578298; Fax: (0755)267530; email:dnbsbhopal@rbi.org.in.

(vii) Language and mode of communicating Fair Practice Code

Fair Practices Code shall be in HINDI OR ENGLISH  based  on  the  guidelines  outlined hereinabove shall be put in place by all NBFCs with the approval of their Boards within one month from the date of issue of  this circular. Company will have the freedom  of  drafting  the  Fair  Practices  Code,  enhancing   the  scope  of  the guidelines but in no way sacrificing the spirit underlying the above guidelines. The same shall be put up on their web-site i,e sunitaonline.com  for the information of various stakeholders.
(viii) Regulation of excessive interest charged by NBFCs

(a) The  Board  of  the company  shall  adopt  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.

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

(c) The rate of interest shall be annualised rate so that the borrower is aware of the exact rates that would be charged to the account.

(ix)  Complaints about excessive interest charged by NBFCs

The Reserve Bank has been receiving several complaints regarding levying of excessive  interest  and  charges  on  certain  loans  and  advances  by  NBFCs. Though interest rates are not regulated by the Bank, rates of interest beyond a certain level may be seen to be excessive and can neither be sustainable nor be conforming to normal financial practice. Boards of NBFCs are, therefore, advised to lay out appropriate internal principles and procedures in determining  interest rates and processing and other charges. In this regard the guidelines indicated in the Fair Practices Code about transparency in respect of terms and conditions of the loans are to be kept in view.

(x) Clarification regarding repossession of vehicles financed by NBFCs

The Company shall have a built in re-possession clause in the contract/loan agreement with the borrower which must be legally enforceable. To ensure transparency, the terms  and  conditions   of  the  contract/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; (d) a provision regarding final chance to be given to the  borrower for repayment of loan before the sale / auction of the property; (e) the procedure  for  giving repossession to the borrower; and (f) the procedure for sale / auction of the property. A copy of such terms and conditions must be made available to the borrower in terms of circular wherein it was stated that NBFCs may invariably furnish a copy of the loan agreement along  with a copy each of all enclosures quoted in the loan agreement to all the borrowers at the time of sanction / disbursement of loans, which may form a key component of such contracts/loan agreements.

C. Lending against collateral of gold jewellery While lending to individuals against gold jewellery, the Company shall adopt the following in addition to the general guidelines as above.

(i) They shall put in place Board approved policy for lending against gold that should inter alia, cover the following:

(a) Adequate steps to ensure that the KYC guidelines stipulated by RBI are complied with and to ensure that adequate due diligence is carried out on the customer before extending any loan,
(b) Proper assaying procedure for the jewellery received,
(c) Internal systems to satisfy ownership of the gold jewellery,
(d) Adequate systems for storing the jewellery in safe custody, reviewing the systems on an on-going basis, training the concerned staff and periodic inspection by internal auditors to ensure that the procedures are strictly adhered to. Normally, such loans should not be extended by branches that do not have appropriate facility for storage of the jewellery,
(e) The jewellery accepted as collateral should be appropriately insured,
(f) Transparent auction procedure in case of non-repayment with adequate prior notice to the borrower. There should be no conflict of interest and the auction process must ensure that there is arm’s length relationship in all transactions during the auction including with group companies and related entities,
(g) The auction should be announced to the public by issue of advertisements in at least two newspapers, one in vernacular language and another in national daily newspaper,
(h) As a policy, the Company themselves should not participate in the auctions held,
(i) Gold pledged will be auctioned only through auctioneers approved by the Board,
(j) The policy shall also cover systems and procedures to be put in place for dealing with fraud including separation of duties of mobilization, execution and approval.

(ii) The loan agreement shall also disclose details regarding auction procedure.

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