In adherence with Guidelines on Fair Practices Code for NBFCs read with Master Circular RBI/2015-16/16 DNBR (PD) CC No.054/03.10.119/2015-16 dated 1st July, 2015 on Fair Practices Code for NBFCs read with Chapter V- of Master Direction DNBR.PD.007/03.10.119/2016-17, Paras Capfin Co Pvt Ltd (“Paras”) has framed and adopted a set of principles for fair practice standards when dealing with customers. As per the RBI directives, we have adopted and will implement these standards in our organization which has been duly approved by Board of Directors of the Company.

This Fair Practice Code (hereinafter referred to as ‘Code’) is aimed to provide to all the stake holders, especially customers effective overview of practices followed by Paras Capfin Company Private Limited (hereinafter referred to as ‘Company/Paras’) in respect of the financial facilities and services offered by the Company to its customers.

This Fair Practices Code applies to all categories of products and services offered by Paras.

Paras commitments to its customers are:

1. Meeting the standards set in this code in all its products, services & processes
2. Ensuring that all its products & services are complying with all relevant laws and regulations
3. Its dealings with customers through its staff are on the principles of trust, integrity and transparency
4. All the financial costs/implications of all its products & services will be clearly explained to the customer’s in the language that they understand
5. All complaints will be handled quickly and mistakes if any will be rectified immediately
6. To ensure compliance with legal norms in matters relating to recovery of advances

Paras commitments to its customers are:

1. All communications to the borrower will be in the vernacular language or a language as understood by the borrower. All communication will be in English, Hindi & the local language of the state in which Paras is doing its business
2. The Company explains to the customers the contents of various loan documents in the vernacular language or a language understood by the customer and further ensures that the customer understands the terms and conditions governing the Loan.
3. The loan application form will have adequate information, which will enable the customer to make a meaningful comparison with the terms and conditions offered by other NBFCs, so that the customer is able to make an informed decision
4. The loan application form will give an indicative list of documents required to be submitted with Application Form while applying for a loan
5. Paras will give an acknowledgement for receipt of loan application, which will also indicate the time frame in which the application will be processed

Paras commitments to its customers are:

1. Paras shall convey in writing to the borrower in the vernacular language or other language as understood by the borrower, by means of sanction letter or otherwise, the following particulars:
   • Assets details;
   • Sanctioned Loan Amount;
   • Annualised rate of Interest to be charged;
   • Overdue interest;
   • Cheque bouncing penalty;
   • Tenor of loan;
   • Instalment amount and structure;
   • Commencement Date;
   • Prepayment penalty
2. Company shall mention the penal interest charged for late repayment in bold in the loan agreement.
3. Company shall take acceptance of the aforesaid terms and condition mentioned in the sanction letter by the customer shall be kept on record.
4. The Company shall furnish a copy of the loan agreement along with a copy each of all enclosures quoted in the loan agreement to all the borrowers after the disbursement of loans.

1. Paras will give notice to the borrower in the vernacular language or a language as understood by the borrower of any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges etc.
2. Any changes in interest rates and charges will be effected prospectively. A suitable condition to that effect will be incorporated in the loan agreement
3. Decision to recall / accelerate payment or performance under the agreement will be in consonance with the loan agreement
4. Paras will 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 Paras may have against borrower. If such right of set off is to be exercised, the borrower will be given notice about the same with full particulars about the remaining claims and the conditions under which Paras is entitled to retain the securities till the relevant claim is settled/paid

1. Paras will refrain from interfering in 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 been noticed)
2. In case of receipt of request from the borrower for transfer of borrowal account, the consent or otherwise i.e. objection, if any, will be conveyed within 21 days from the date of receipt of request. Acceptance or refusal thereof shall be in accordance with terms of the agreement. Such transfer shall be as per transparent contractual terms in consonance with law.
3. In the matter of recovery of loans, Paras will not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans, etc. Paras shall ensure that its staff are adequately trained to deal with the customers in an appropriate manner.
4. Paras shall not charge any foreclosure charges / pre-payment penalties on anyll floating rate term loans sanctioned for purposes other than business to individual borrowers

1. Customer Satisfaction is of utmost importance to Paras and any customer grievance needs to be resolved with utmost urgency. Paras will have a Customer Service Department, which will handle all customer complaints. Any complaint’s which are not resolved within the prescribed time frame will be escalated to the Grievance Redressal Officer
2. Paras will prominently display at all branches/places where business is transacted a board outlining the “Customer Service Contact Points” which will have the following
   1. Email ID
   2. Toll Free No
   3. Website
   4. Office Address
3. The following information shall be displayed prominently, for the benefit of the customers, at all branches / places of Paras where business is transacted:
   1. The name and contact details (Telephone / Mobile nos. as also email address) of the Grievance Redressal Officer who can be approached for resolution of complaints against Paras
   2. The name and contact details of Officer-in-Charge of the Regional Office of DNBS of RBI, under whose jurisdiction the registered office of Paras falls
   3. Message stating – “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”
4. There will be a 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 will be submitted to the Board at regular intervals.

1. The Copy of Fair Practice Code in English, Hindi & Local language of the state in which Paras is operating will be made available at all branches/places where business is transacted
2. Appropriate disclosure regarding this Policy should be made on the Company website at https://parascapfin.com/.

Aim of adopting these practices is to communicate the annualized rate of interest to the borrower along with the approach for gradation of risk and rationale for charging different rates of interest to different categories of borrowers to have a transparent trade with customers and also to comply with the regulatory guidelines.

1. Interest Rate

Appropriate internal principles and procedures in determining interest rates and processing and other charges shall be followed in line with the approved company policies from time to time.
The rate of interest arrived shall be based on the weighted average cost of funds, administrative costs, risk premium and profit margin.

1. Gradation of Risk

The decision to give a loan and the interest rate applicable to each loan account shall be assessed on a case to case basis, based on multiple parameters such as the type of asset being financed, borrower profile and repayment capacity, borrower’s other financial commitments, past repayment track record if any, the security for the loan as represented by the underlying assets, loan to value ratio, mode of payment, tenure of the loan, geography (location) of the borrower, end use of the asset etc.
The rates of interest are subject to change as the situation warrants and are subject to the discretion of the management on a case to case basis. The rate of interest informed are annualized rates so that the borrower is aware of the exact rates that would be charged to the account.
The Company shall disclose the interest rates and gradation of risks on its website.

Paras will include a built in re-possession clause in the loan agreement with the borrower which must be legally enforceable. To ensure transparency, the terms and conditions of the loan agreement should also contain provisions regarding:

1. Notice period before taking possession
2. Circumstances under which the notice period can be waived
3. The procedure for taking possession of the security
4. A provision regarding final chance to be given to the borrower for repayment of loan before the sale / auction of the security
5. The procedure for giving repossession to the borrower and
6. The procedure for sale / auction of the security