Applications for loans and their processing
Loan Applications shall contain all relevant information in respect of the loan. Loan Application shall be either in English or a vernacular language as understood by the Borrower.
The list of documents required to be submitted. The Borrower shall furnish to the Company at the time of availing of loans, all the relevant documents required by the Company to satisfy the Know Your Customer(KYC) norms prescribed by RBI.
Sanction of Loan and terms & conditions
Gold Loans shall be sanctioned after the verification of the following:
• Identity proof
• Address proof
• Appraisal of the gold ornaments offered as security.
The borrower shall satisfy the company by providing necessary documents/information as prescribed by the Company to confirm that the gold ornaments being pledged by him is/are owned by him. The pledge form which forms part of the loan document shall have the following details:
• Amount of loan sanctioned
• Particulars of the security offered
• The terms and conditions
A copy of the Pledge Form shall be provided to the Borrower.
Rate of Interest and Penal Interest
The loan sanctioned shall be charged at a specific rate of interest and the same shall be recorded in the pledge form. The annualized rate of Interest depends on the risk involved. The risk is valuated based on the following:
• Amount of loan
• Quantity of gold ornament pledged
• Ornaments purity
• Loan to value(LTV)
• Penal interest charged for late repayment of the principal or interest or both will be mentioned in the loan agreement/pledge form.
Disbursement of loans including changes in terms and condition
The company shall send a Notice to the Borrower of any change in interest rate, charges and the terms and conditions. Such changes shall be effective prospectively. Decision to recall a loan will be in consonance with the loan agreement.
The company will release the securities on repayment of all dues. However, if any legitimate right or lien for any other claim of the Company exists against the Borrower then the same shall be detained. If the right of set off is exercised, the borrower shall be given notice about the same with full particulars about the remaining claims and the relative conditions enabling the company to detain the securities till the relevant claim is settled/ paid.
General
The Company will keep away from the affairs of the borrower except for the purposes provided in the terms and conditions of the loan agreement (unless new information, not earlier disclosed by the borrower, has come to the notice of the Company).
The Company shall respect the privacy of the Borrower and will ensure that he is not caused undue harassment; he is not disturbed at odd hours. Also it shall be ensured that muscle power is not used for recovery of loans
Policy guidelines on Auction of pledged Gold Ornaments
The Company has a separate policy termed as Auction Policy. This policy defines the procedure to be followed by the Company when the Gold ornaments pledged by the Borrower are not redeemed after the due date.
Misrepresentation
If, after the loan is granted, the Company comes to the conclusion that the borrower obtained the loan through misrepresentation of facts and has failed to repay the loan with interest on demand made by the Company, then the Company shall file a police complaint.
Assaying
Unless otherwise specified in the pledge form and other documents, the gold ornaments accepted by the company as security for the loan granted, will be of the purity of standard 22 carat.
Grievance Redressal Mechanism
Complaints received from the Borrowers against the Company or Branch Officials shall be attended to with immediate effect. The Authority in next higher level shall attend to the complaints received.
Borrowers are required to make a written complaint and submit the same at the Branch or to the ADM of the Branch.
If the same is not satisfactorily resolved, the Borrower can contact the Head office at the following address:
Company Secretary,
Door No. 40/1166, Thadikaran Centre,
Palarivattom, Kochi-25
Ph: 0484 2341289, Mob:08138911334
Email: cs@agroindus.co.in
If the complaint is not resolved within one month the borrower can approach RBI at the following address.
General Manager,
Reserve Bank of India,
Department of Non-Banking Supervision, Bakery Junction,
PB. No. 6507, Thiruvananthapuram-695003.
Tel No. 0471-2338818.
The Name, Address and contact details of the officers mentioned above are displayed at all Branches for information of the Borrowers.
This Fair Practices Code will be displayed in the Company’s Website.
