
Policy on Interest Rate Model and Policies & Procedures on Determining Interest Rates
Keeping in view of the RBI’s guidelines advising the Boards of NBFCs to lay out the appropriate internal principles and procedures in determining interest rates, processing and other charges, the Moneywise Financial Services Pvt. Ltd. had adopted the following internal guidelines, policies, procedures and interest rate model for its lending business.
These need to be taken cognizance of while determining interest rates and other charges, and changes thereto. The average yields and the rate of interest under each product is decided from time to time, giving due consideration to the following factors;
Keeping in view of the above, the Company had adopted the following interest rate policy:
The Board of Directors of Moneywise Financial Services Private Limited have approved the Fair Practices Code as required in terms of Circulars issued by The Reserve Bank of India from time to time, to be followed in all dealings with the borrowers of Moneywise Financial Services Private Limited (hereinafter referred as Moneywise).
The Fair Practices Code is aimed to provide to the customers effective overview of practices, which will be followed by Moneywise in respect to the financial facilities and services offered by Moneywise to its customers. The Code will facilitate the customers to take informed decisions in respect of the financial facilities and services to be availed by them and will apply to any loan that Moneywise may sanction and disburse.
Moneywise, as a responsible corporate citizen, believes in fair and transparent practices at all stages of customer service viz, loan application, loan appraisal, loan disbursement, loan recovery, customer servicing and customer grievances.
Loan Applications and Processing
Moneywise presently does not promote personal consumption loans (staff being excluded). Moneywise expects full and detailed disclosure of the purpose and end use of the loan applied for and how the loan will help to generate its repayment without recourse to security.
The loan application form may be collected from our offices or may be downloaded from the website. The application must however be submitted in physical form with supporting documents. All relevant information pertaining to the loan and affecting the interest of the borrower are made available in the relevant loan application forms/agreement kits, the said kit also indicate the supporting documents required to be submitted for the loan. Application for requirement of loan for funding IPOs/ house booking/ car booking etc. are much short and simple in nature and sanction process is instant. It is not practical to get all documents in English language to be translated in different languages. However, customers are welcome to get any document translated or interpreted for their understanding or to contact our staff for any help in this regard.
All sanctions are in the discretion of Moneywise. The terms of loan would depend on alternate avenues of investment and several other factors affecting risk profile, such as industry risk, client risk and security risk, apart from cost of funds and cost of management. Hence, the rate of interest would be quoted on full appraisal of the loan application.
The receipt of loan applications is acknowledged by Moneywise. Ordinarily sanction/rejection is intimated within 10 days of receipt of all documents/information required for appraisal.
The amount of loan sanctioned and principal commercial terms of loan would be communicated to the applicant in the Sanction Letter. In accordance with practice with banks, Interest, otherwise than on final settlement, is payable at the first date of every succeeding month, unless expressly stated otherwise in the sanction letter.
Loan Appraisal and Terms & Conditions
All loan applications will be assessed in accordance with Moneywise’s internal credit appraisal process.
Upon approval of the loan, a Sanction Letter indicating the amount of loan sanctioned, the applicable annualized interest rate and method of application thereof, the penal interest charges (in bold) for late payment and prepayment shall be conveyed to the applicant in English or in vernacular language upon the request by the borrower.
At the time of sanction/ first disbursement of the loan all borrowers shall be furnished a copy of the loan agreement along with a copy each of all enclosures quoted in the loan agreement.
The interest will be charged as per Moneywise’s interest rate model. The rate of interest and approach for gradation of risk and rationale for charging the interest rate to the borrower shall be disclosed to the borrower in application kit/ sanction letter. Moneywise will ensure that Interest charge will be as per market practice and is reasonable.
Disbursement of Loans including Changes in Terms and Conditions
Ordinarily terms and conditions are applicable for the full scheduled duration of the loan. However, Moneywise reserves the right to make changes in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges etc. Provided that at least one week notice shall be given by Moneywise for any such change and any such change will be effective only prospectively.
All security(ies) is released on full repayment of all dues and outstanding loan, subject to legitimate right of lien for any other loan. Where a right of set off against a security is available to Moneywise under law or under contract or otherwise, it shall be exercised rationally, with notice about the same with full particulars about the claims and conditions under which we are entitled to retain the security till the relevant claim is settled/paid.
General
Moneywise refrain itself from interference in the affairs of the borrower. Where it becomes necessary, it is ensured that it is limited to the purposes provided in the loan agreement and a fair and transparent procedure is adopted.
Where the borrower insists on transferring the loan, the consent or otherwise the objection if any taken as per transparent contractual terms in consonance with law, would be conveyed within 21 days from the date of receipt of such request of the borrower.
Emphasis is laid on staff training to ensure that borrowers/clients are dealt with in a courteous and appropriate manner. Satisfied and well treated clients are valuable assets.
Loan recovery methods, wherever have to be employed per force of circumstances, are aimed at resulting into least inconvenience and possibly no harassment to the borrowers/clients.
As a measure of customer protection and to bring uniformity with regard to prepayment, Moneywise shall not charge foreclosure charges/ pre- payment penalties on all floating rate term loans sanctioned to individual borrowers.
Grievance Redressal Mechanism
The Company has an in built Grievance Redressal Mechanism. Grievance against decision/action of any functionary in the company may be made as per the following procedure:
The first level complaint may be made at the following Email Id: complaint.finance@smcfinance.com which shall be redressed within a period of ten days. If the complaint is not redressed within a period of ten days, then the complaint may be escalated to the following officer of the Company:
Shri Ashu Batra, Company Secretary
Moneywise Financial Services Pvt. Ltd.
Corporate Office: 9B, Netaji Subash Marg,
Daryaganj, New Delhi- 110002,
Email Id :grievances.finance@smcfinance.com
Tel.: 011-30111333-7759
All grievances shall be heard and disposed off by a person at least one level higher to the person / designation against / relating to whom the grievance is made. The grievance shall be attempted to be enquired into/redressed/responded within a week.
In case the grievance is not redressed within 1 month the customer may appeal to:
The Officer in Charge,
Department of Non Banking Services,
Reserve Bank of India,
15, Netaji Subhas Road,
Kolkata-700 001.
Tel:+913322312121,
Fax: +91 33 22309589
There shall be a periodical review of the implementation and compliance with this code including the redressal of grievances received at various levels of management by the Board of Directors.
The Board may amend the provisions of this Code from time to time. Unless otherwise specified, such amendments shall be effective from the date of the Board meeting at which such amendments are approved.
With reference to the Guidelines / Circulars issued by Reserve Bank of India regarding 'Know Your Customer and "Anti Money Laundering" norms, wherein Non Banking Financial Companies (NBFCs) were advised to follow certain customer identification procedure for opening of accounts and monitoring transactions of suspicious nature for the purpose of reporting it to appropriate authority, Moneywise Financial Services Pvt Ltd (“Moneywise”) has formulated the following KYC / AML policy. This policy comes into effect from the date of its approval in the Board Meeting held on 06 October 2006. The policy has been suitably amended from time to time as per the requirements of Moneywise in conformation with guidelines of RBI
Background: The Recommendations made by the Financial Action Task Force (FATF) on Anti Money Laundering (AML) standards and on Combating Financing of Terrorism (CFT) standards have become the international benchmark for framing Anti Money Laundering and combating financing of terrorism policies by the regulatory authorities. Compliance with these standards by the banks/ financial institutions, including NBFCs, has become necessary for international financial relationships. The RBI has issued comprehensive ‘Know Your Customer’ Guidelines to all Non-Banking Financial Companies (NBFCs) in the context of the recommendations made by the Financial Action Task Force (FATF) and Anti Money Laundering (AML) standards and combating financing of terrorism policies by the regulatory authorities and advised all NBFCs to adopt the same with suitable modifications depending on the activity undertaken by them and ensure that a proper policy framework on KYC and AML measures are formulated and put in place with the approval of their respective Boards.
Know Your Customer' Standards
1. The objective of KYC guidelines is to prevent NBFCs from being used, intentionally or unintentionally, by criminal elements for money laundering activities. KYC procedures also enable NBFCs to know/understand their customers and their financial dealings better which in turn help them manage their risks prudently. Moneywise has framed its KYC policy incorporating the following four key elements
a person or entity that maintains an account and/or has a business relationship with Moneywise; one on whose behalf the account is maintained (i.e. the beneficial owner); beneficiaries of transactions conducted by professional intermediaries, such as Stock Brokers, Chartered Accountants, Solicitors, etc. as permitted under the law, and any person or entity connected with a financial transaction which can pose significant reputational or other risks to Moneywise.
Customer Acceptance Policy (CAP)
Customer Identification Procedure (CIP)
Monitoring of Transactions (MT)
Risk Management (RM)
Customer Education
Introduction of New Technologies
Appointment of Principal Officer
Maintenance of records of transactions
Information to be preserved
Maintenance and Preservation of records
Reporting to Financial Intelligence Unit-India
The Board of Directors of Moneywise Financial Services Pvt. Ltd. has framed these Internal Guidelines on KYC and AML, enhancing the scope of the guidelines issued by RBI in this respect without sacrificing the spirit of the guidelines. Moneywise shall abide by the Policy following the spirit of the Policy.
Any amendments in this policy shall not be carried out unless the same are authorized by any two Directors of the Moneywise existing on that date. Any such changes / amendments made in this policy may be put before the Board of Directors in the Board Meetings.
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Policy on Interest Rate Model and Policies & Procedures on Determining Interest Rates
Keeping in view of the RBI’s guidelines advising the Boards of NBFCs to lay out the appropriate internal principles and procedures in determining interest rates, processing and other charges, the Moneywise Financial Services Pvt. Ltd. had adopted the following internal guidelines, policies, procedures and interest rate model for its lending business.
These need to be taken cognizance of while determining interest rates and other charges, and changes thereto. The average yields and the rate of interest under each product is decided from time to time, giving due consideration to the following factors;
Keeping in view of the above, the Company had adopted the following interest rate policy:
The Board of Directors of Moneywise Financial Services Private Limited have approved the Fair Practices Code as required in terms of Circulars issued by The Reserve Bank of India from time to time, to be followed in all dealings with the borrowers of Moneywise Financial Services Private Limited (hereinafter referred as Moneywise).
The Fair Practices Code is aimed to provide to the customers effective overview of practices, which will be followed by Moneywise in respect to the financial facilities and services offered by Moneywise to its customers. The Code will facilitate the customers to take informed decisions in respect of the financial facilities and services to be availed by them and will apply to any loan that Moneywise may sanction and disburse.
Moneywise, as a responsible corporate citizen, believes in fair and transparent practices at all stages of customer service viz, loan application, loan appraisal, loan disbursement, loan recovery, customer servicing and customer grievances.
Loan Applications and Processing
Moneywise presently does not promote personal consumption loans (staff being excluded). Moneywise expects full and detailed disclosure of the purpose and end use of the loan applied for and how the loan will help to generate its repayment without recourse to security.
The loan application form may be collected from our offices or may be downloaded from the website. The application must however be submitted in physical form with supporting documents. All relevant information pertaining to the loan and affecting the interest of the borrower are made available in the relevant loan application forms/agreement kits, the said kit also indicate the supporting documents required to be submitted for the loan. Application for requirement of loan for funding IPOs/ house booking/ car booking etc. are much short and simple in nature and sanction process is instant. It is not practical to get all documents in English language to be translated in different languages. However, customers are welcome to get any document translated or interpreted for their understanding or to contact our staff for any help in this regard.
All sanctions are in the discretion of Moneywise. The terms of loan would depend on alternate avenues of investment and several other factors affecting risk profile, such as industry risk, client risk and security risk, apart from cost of funds and cost of management. Hence, the rate of interest would be quoted on full appraisal of the loan application.
The receipt of loan applications is acknowledged by Moneywise. Ordinarily sanction/rejection is intimated within 10 days of receipt of all documents/information required for appraisal.
The amount of loan sanctioned and principal commercial terms of loan would be communicated to the applicant in the Sanction Letter. In accordance with practice with banks, Interest, otherwise than on final settlement, is payable at the first date of every succeeding month, unless expressly stated otherwise in the sanction letter.
Loan Appraisal and Terms & Conditions
All loan applications will be assessed in accordance with Moneywise’s internal credit appraisal process.
Upon approval of the loan, a Sanction Letter indicating the amount of loan sanctioned, the applicable annualized interest rate and method of application thereof, the penal interest charges (in bold) for late payment and prepayment shall be conveyed to the applicant in English or in vernacular language upon the request by the borrower.
At the time of sanction/ first disbursement of the loan all borrowers shall be furnished a copy of the loan agreement along with a copy each of all enclosures quoted in the loan agreement.
The interest will be charged as per Moneywise’s interest rate model. The rate of interest and approach for gradation of risk and rationale for charging the interest rate to the borrower shall be disclosed to the borrower in application kit/ sanction letter. Moneywise will ensure that Interest charge will be as per market practice and is reasonable.
Disbursement of Loans including Changes in Terms and Conditions
Ordinarily terms and conditions are applicable for the full scheduled duration of the loan. However, Moneywise reserves the right to make changes in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges etc. Provided that at least one week notice shall be given by Moneywise for any such change and any such change will be effective only prospectively.
All security(ies) is released on full repayment of all dues and outstanding loan, subject to legitimate right of lien for any other loan. Where a right of set off against a security is available to Moneywise under law or under contract or otherwise, it shall be exercised rationally, with notice about the same with full particulars about the claims and conditions under which we are entitled to retain the security till the relevant claim is settled/paid.
General
Moneywise refrain itself from interference in the affairs of the borrower. Where it becomes necessary, it is ensured that it is limited to the purposes provided in the loan agreement and a fair and transparent procedure is adopted.
Where the borrower insists on transferring the loan, the consent or otherwise the objection if any taken as per transparent contractual terms in consonance with law, would be conveyed within 21 days from the date of receipt of such request of the borrower.
Emphasis is laid on staff training to ensure that borrowers/clients are dealt with in a courteous and appropriate manner. Satisfied and well treated clients are valuable assets.
Loan recovery methods, wherever have to be employed per force of circumstances, are aimed at resulting into least inconvenience and possibly no harassment to the borrowers/clients.
As a measure of customer protection and to bring uniformity with regard to prepayment, Moneywise shall not charge foreclosure charges/ pre- payment penalties on all floating rate term loans sanctioned to individual borrowers.
Grievance Redressal Mechanism
The Company has an in built Grievance Redressal Mechanism. Grievance against decision/action of any functionary in the company may be made as per the following procedure:
The first level complaint may be made at the following Email Id: complaint.finance@smcfinance.com which shall be redressed within a period of ten days. If the complaint is not redressed within a period of ten days, then the complaint may be escalated to the following officer of the Company:
Shri Ashu Batra, Company Secretary
Moneywise Financial Services Pvt. Ltd.
Corporate Office: 9B, Netaji Subash Marg,
Daryaganj, New Delhi- 110002,
Email Id :grievances.finance@smcfinance.com
Tel.: 011-30111333-7759
All grievances shall be heard and disposed off by a person at least one level higher to the person / designation against / relating to whom the grievance is made. The grievance shall be attempted to be enquired into/redressed/responded within a week.
In case the grievance is not redressed within 1 month the customer may appeal to:
The Officer in Charge,
Department of Non Banking Services,
Reserve Bank of India,
15, Netaji Subhas Road,
Kolkata-700 001.
Tel:+913322312121,
Fax: +91 33 22309589
There shall be a periodical review of the implementation and compliance with this code including the redressal of grievances received at various levels of management by the Board of Directors.
The Board may amend the provisions of this Code from time to time. Unless otherwise specified, such amendments shall be effective from the date of the Board meeting at which such amendments are approved.
With reference to the Guidelines / Circulars issued by Reserve Bank of India regarding 'Know Your Customer and "Anti Money Laundering" norms, wherein Non Banking Financial Companies (NBFCs) were advised to follow certain customer identification procedure for opening of accounts and monitoring transactions of suspicious nature for the purpose of reporting it to appropriate authority, Moneywise Financial Services Pvt Ltd (“Moneywise”) has formulated the following KYC / AML policy. This policy comes into effect from the date of its approval in the Board Meeting held on 06 October 2006. The policy has been suitably amended from time to time as per the requirements of Moneywise in conformation with guidelines of RBI
Background: The Recommendations made by the Financial Action Task Force (FATF) on Anti Money Laundering (AML) standards and on Combating Financing of Terrorism (CFT) standards have become the international benchmark for framing Anti Money Laundering and combating financing of terrorism policies by the regulatory authorities. Compliance with these standards by the banks/ financial institutions, including NBFCs, has become necessary for international financial relationships. The RBI has issued comprehensive ‘Know Your Customer’ Guidelines to all Non-Banking Financial Companies (NBFCs) in the context of the recommendations made by the Financial Action Task Force (FATF) and Anti Money Laundering (AML) standards and combating financing of terrorism policies by the regulatory authorities and advised all NBFCs to adopt the same with suitable modifications depending on the activity undertaken by them and ensure that a proper policy framework on KYC and AML measures are formulated and put in place with the approval of their respective Boards.
Know Your Customer' Standards
1. The objective of KYC guidelines is to prevent NBFCs from being used, intentionally or unintentionally, by criminal elements for money laundering activities. KYC procedures also enable NBFCs to know/understand their customers and their financial dealings better which in turn help them manage their risks prudently. Moneywise has framed its KYC policy incorporating the following four key elements
a person or entity that maintains an account and/or has a business relationship with Moneywise; one on whose behalf the account is maintained (i.e. the beneficial owner); beneficiaries of transactions conducted by professional intermediaries, such as Stock Brokers, Chartered Accountants, Solicitors, etc. as permitted under the law, and any person or entity connected with a financial transaction which can pose significant reputational or other risks to Moneywise.
Customer Acceptance Policy (CAP)
Customer Identification Procedure (CIP)
Monitoring of Transactions (MT)
Risk Management (RM)
Customer Education
Introduction of New Technologies
Appointment of Principal Officer
Maintenance of records of transactions
Information to be preserved
Maintenance and Preservation of records
Reporting to Financial Intelligence Unit-India
The Board of Directors of Moneywise Financial Services Pvt. Ltd. has framed these Internal Guidelines on KYC and AML, enhancing the scope of the guidelines issued by RBI in this respect without sacrificing the spirit of the guidelines. Moneywise shall abide by the Policy following the spirit of the Policy.
Any amendments in this policy shall not be carried out unless the same are authorized by any two Directors of the Moneywise existing on that date. Any such changes / amendments made in this policy may be put before the Board of Directors in the Board Meetings.
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