Fair Practices Code


  • 1. Objective

    Introduction Pursuant to Reserve Bank of India (RBI)’s Circular DNBS (PD) CC NO.80/03.10.042/2005- 06 of 28 September 2006, issued to Non-Banking Financial Companies (NBFCs), the Board of Directors have adopted a Fair Practices Code for Visage Holdings and Finance Private Limited (“Company”)

  • RBI vide Circular DNBS.CC.PD.No.266/03.10.01/2010-11 dated March 26, 2012 had amended guidelines on Fair Practices Code for NBFCs and accordingly suitable modifications are made hereunder in the Code to comply with the aforesaid guidelines.

  • The Fair Practices Code, as adopted herein below, is in conformity with the Guidelines on Fair Practices Code for NBFCs as contained in the aforementioned RBI Circular.

  • The Company’s business will be conducted in accordance with prevailing statutory and regulatory requirements, with due focus on efficiency, customer orientation and corporate governance principles. In addition, the Company will adhere to the Fair Practices Code in its functioning.

  • The key elements are as follows:

    • The Fair Practices Code, as adopted herein below, is in conformity with the Guidelines on Fair Practices Code for NBFCs as contained in the aforementioned RBI Circular.

    • The Company shall give notice to all its borrowers of any change in the terms and conditions –including disbursement schedule, interest rates, service charges, prepayment charges etc. The Company shall also ensure that changes in interest rates and charges are effected only prospectively. A suitable provision in this regard shall be incorporated in the loan agreement. Decision to recall / accelerate payment or performance under the agreement shall also be in consonance with the loan agreement.The Company shall release all securities on repayment of its full dues or on realization of the outstanding amount of loan subject to any legitimate right or lien for any other claim the Company may have against its borrowers. 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 the Company is entitled to retain the securities till the relevant claim is settled/paid. The Company shall refrain from interference in the affairs of the borrower except for the purposes provided for 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).In case of receipt of request from the borrower for transfer of borrowal account, the consent or otherwise i.e. objection of the Company, if any – shall be conveyed to the borrower within 21 days from the date of receipt of any request. Such transfer shall be as per transparent contractual terms in consonancewith law.In the matter of recovery of loans, the Company shall not resort to any harassment – such as persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans, etc.

    • The Company shall put the above Fair Practices Code outlined hereinabove on its website, for the information of various stakeholders. The Company will also review and refine the Code, as may be required periodically based on its own experience and fresh guidelines, if, any, to be issued by the RBI in this regard. Complaints about excessive interest charged by the Company The Company shall lay out appropriate internal principles and procedures in determining interest rates and processing and other charges.

    • The Company shall adopt an interest rate model taking into account relevant factors such as, cost of funds, margin and risk premium, etc. 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. The rates of interest and the approach for gradation of risks shall also be made available on the website of the company or published in the relevant newspapers. The information published in the website or otherwise published should be updated whenever there is a change in the rates of interest.

      The rate of interest should be annualized rates so that the borrower is aware of the exact rates that would be charged to the account. Clarification regarding repossession of hypothecated assets financed by the Company. 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) The notice period before taking possession;

      (b) The 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 borrowers in terms of circular wherein it was stated that the Company 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.

    • Kinara Capital has a robust Grievance Redressal Mechanism. In order to effectively address customer grievances, Kinara Capital has introduced multiple channels of communication as described below. A customer can raise a complaint or express their dissatisfaction of the company service by any method listed below:

      1. Walk in to their service hub, and speak to the Hub Manager.

      2. Call the toll free customer care number 1800-103-2683 and speak to our customer care agent.

      3. Email us the customer issues at [email protected]

      4. Raise a complaint on our website – www.kinaracapital.com/contact-us/

      5. Send letters or notices to the registered office:


      Registered office address:

      The Customer Care Officer

      Kinara Capital,

      No. 50, Second Floor, 100 Feet Road,

      HAL 2nd Stage (Defence Colony),

      Indiranagar, Bengaluru, Karnataka 560038


      After waiting for a reasonable time, if the customer feels that his issue is still not addressed or resolved to his satisfaction he / she may escalate the issue as per the company escalation Matrix.

      Customer Grievance Escalation Matrix
      Level Name of the Officer Contact Details Designation
      Level 1 Udaiya Deepak Phone No: 6364464958 Email: [email protected] Manager – Customer Care
      Level 2 Riji K Phone No: 6364464953 Email: [email protected] Head – Customer Care
      Level 3 Mohan K. Pattabhiraman Phone No: 6364464957 Email: [email protected] Head IQA, Principal Nodal Officer
      Level 4 Thirunavukkarasu R Phone No: 6364464955 Email: [email protected] Chief Operating Officer & Director of the Board

      5th Level Escalation:

      In rarest of the scenarios where the customer is not happy with the response provided by the 4th level escalation, and if the issue is not resolved within 1 month of submission, the customer can write to the NBFC Ombudsman, details as provided below:

      Sl No Center Address of the Office of NBFC Ombudsman Area of Operation
      1 Chennai C/o Reserve Bank of India Fort Glacis, Chennai – 600 001 STD Code: 044 Telephone No : 25395964 Fax No : 25395488 Email: [email protected] Tamil Nadu, Andaman and Nicobar Islands, Karnataka, Andhra Pradesh, Telangana, Kerala, Union Territory of Lakshadweep and Union Territory of Puducherry
      2 Mumbai C/o Reserve Bank of India RBI Byculla Office Building Opp. Mumbai Central Railway Station Byculla, Mumbai-400008 STD Code: 022 Telephone No :23001280 Fax No : 23022024 Email: [email protected] Maharashtra, Goa, Gujarat, Madhya Pradesh, Chhattisgarh, Union Territories of Dadra and Nagar Haveli, Daman and Diu