Fair Practice & Code

Auxilo FINSERVE PRIVATE LIMITED (Auxilo /Company) being a Non-deposit taking Non-Banking Financial Company (Category II) registered with Reserve Bank of India having customer interface is required to formulate its Board approved Fair Practices Code (FPC/Code).

Fair Practices code is formulated pursuant to the Reserve Bank Directives - Non-Banking Financial Company – Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016. The Code aims to enhance the scope of the spirit underlying these directions of the Reserve Bank of India.

  1. The Code lays down Auxilo's commitment towards its customers/borrowers (used interchangeably) to deliver the financial services and products in a fair and transparent manner.
  2. The Code aims to lay down the standards of transparency in all its dealings, such that the customers are able to take an informed decision while adopting Auxilo's products and services.
  3. The standards so set shall be the guidelines for its management and employees to follow strictly in all its dealing with the customers.


FPC shall apply to all employees of the Company and other persons authorized to represent it in the course of its business with respect to all products and services. It shall apply across all aspects of its operations including marketing, loan origination, processing, servicing and collection activities.

Broad principles on which the Code is built

  1. Clear and transparent information to be given about the products and services and the same to be in the language understood by the customers.
  2. The terms and conditions of each of the product and services to meet the spirit of the RBI guidelines and applicable laws.
  3. Prompt customer grievance redressal, no discrimination amongst the customers on the basis of age, race, caste, gender, marital status, religion or disability.
  4. Information to the customer – Updated version of the Code shall be displayed on the Company's website and at each branch office in a conspicuous place. A copy of the Code to be provided on request to the customer/prospective customer


All communication to the borrower shall be in the language understood by the borrower. The essential information which affects the interest of the customers should be communicated to the borrower so as to help them carry out a meaningful comparison before choosing Auxilo's products and services. Hence while sourcing, at the minimum the interest rates, the processing fees and any other charges including prepayment charges and options shall be communicated to the customer.

Additionally the Loan application form shall also provide the list of document required to be submitted by the customer.

On receipt of completed application form an appropriate acknowledgement shall be provided indicating the time frame being not less than 15 days, within which the loan application will be disposed.


It shall be conveyed in writing to the borrowers in the language understood by them by means of a sanction letter about the sanction of the loan. The Sanction letter shall indicate the amount of loan sanctioned along with the terms and conditions including annualized rate of interest and method of application thereof. The borrowers' acceptance of these terms and conditions shall be kept on record.

The loan agreement shall be signed physically by both the parties that is the company and the borrower and where the agreement is to be signed digitally, the same shall be signed by both the company as well as the borrower electronically pursuant to the provisions of Information Technology Act.

The loan agreement to be signed with the borrower shall mention the penal interest that would be charged for late repayment in bold. An electronic or physical copy of the executed loan agreement along with its enclosures quoted therein shall be furnished to the Customer upon disbursement of loan.


Notice shall be given to the borrowers in an event of any change in the terms and conditions in reference to the disbursement schedule, interest rates, service charges and the prepayment charges, in the language understood by the borrower clearly indicating the changed terms. Notice may be given by sending a Short Messaging Service (SMS), courier, electronic mail, email, registered or certified mail or facsimile where available. With the constant technological developments the means of communication have been enlarging and due to the ease thereof the customers may prefer the use of those means in addition to the above specified options. The company may explore these options and if found feasible can provide the customers the list of options to choose from. If the customer opts to be provided notice by any specific means of communication, the same shall be used to send out any kind of notice.

Changes in the interest rates and charges shall be effected only prospectively.

Any decision to recall/accelerate payment or performance shall be in consonance with the loan agreement.

All securities shall be released on repayment of all dues or on realization of the outstanding amount subject to any of the company's legitimate right or lien for any other claim it may have against the borrower. If such right of set-off is to be exercised, the Company shall give notice to the borrower about the same with full particulars about the remaining claims and the conditions under which it 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 in the terms and conditions of the loan agreement (unless new information, not earlier disclosed by the borrower, has come to its notice).

Transfer of loan request – If the borrower requests for transfer of the loan account, the company shall either accord its consent or intimate its objection, if any to the same, and convey its decision in writing within 21 days from the date of receipt of request. Such transfer shall be as per the contractual terms entered into with the borrower and should be in consonance with law.

The Company shall not charge any foreclosure or prepayment penalties on the term loans sanctioned to individual borrowers at the floating rate of interest.


The customer shall be promptly informed about the repayment process, schedule including the amount, tenure and periodicity of repayment. The customers shall be provided all the information regarding dues and shall endeavour to give sufficient notice for payment of dues. The customer shall be reminded by sending notice or by making personal visits and / or repossession of security if any.

In the matter of recovery of loans, undue harassment for example persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans, etc., shall be strictly avoided. The recovery methods should be courteous, fair and persuasive. The Company employees and the persons authorized to represent the company shall always deal with the customers in a polite manner. They shall identify themselves and display the authority letter issued by the company.

Guidelines for the collection of dues:

  • Privacy of the Customer should be respected at all times
  • Contacting the customer
    • Time : The customers should be contacted only between 7.00 am and 7.00 pm
    • Place: The customers should be given an option to choose a place to contact them or if no such place is specified then at their respective residence address and if the same is unavailable only then at the place of business / occupation
  • The company representatives approaching the customer for collection should always maintain decorum, decency and interact with the customer in a civil manner.
  • If the Customer requests not to contact at a certain place/time, such a request should always be honoured. (Unless the customer's request is solely to avoid meeting the company's representatives for collection)
  • Details about the number of times the customer has been contacted by telephone calls and the conversation details in the form of minutes should be maintained
  • The Company's endeavour should be to assist the customer to clear the differences, if any, about the dues and help resolve the disputes, if any, in an amicable manner
  • Any tragic occasions or bereavement in the family of the customer are the instances when the company officials shall strictly avoid paying visit/making calls for collection


A Board approved procedure shall be laid down for determining the interest rates, processing and other charges.

The rate of interest applicable to customers would be based on Company's Benchmark Lending Rate which in turn is dependent on factors such as cost of funds, margin, etc., plus a spread which is determined on the risk gradation of each application. The rate of interest would also differ depending on the category of customer.

Gradation of risk depends on factors such as student's academic background, employability of the selected course from a selected college and country of study, financial strength of the co-borrower, loan repayment capability, credit history, collateral offered or not, serviceability of the loan through Company's branch network, cost/s associated with underwriting and servicing the loan.

The application form shall include the rate of interest and indicate that the differential rate of interest shall be chargeable pursuant to the guidelines issued by the Reserve Bank of India from time to time. The sanction letter for the information of the customer shall indicate the same.


The Managing Director/Chief Executive Officer of the Company shall submit to the Board on a quarterly basis on the review of the compliances under the code and functioning of the greivances redressal mechanism at various levels of management.


The Guarantor(s) shall be informed about their liability as Guarantor in terms of amount and the circumstances when the liability would arise. The Guarantors shall also be given an understanding about the recourse available with the company if he/she fails to pay the amount guaranteed for payment.

The Company shall also inform the guarantor of any material adverse change/s in the financial position of the borrower for whom he / she stands as a Guarantor.


The Company shall always maintain confidentiality with respect to the personal information of customers. Following would be the exception to this:

  1. With the prior consent of the customer, when such an information is to be given as a reference
  2. On the Customers' request to provide the information
  3. Required to be provided under the provisions of laws/regulations
  4. Being a duty towards the public to reveal the information
  5. In the Company's interests for reasons like to prevent fraud

The customers shall be informed about their rights under the existing legal framework for accessing the personal records that the company holds about them.


The customer shall be informed that the law mandates the company to pass the borrowers account information to credit reference agencies.

The customer shall be intimated in writing that the company intends to give information about the debts of the customer to the credit reference agencies. The intimation to the customer shall explain the role of credit reference agencies and the effect of the information provided by them will have on their ability to get credit.

On customer's request, a copy of the information sent to credit reference agencies shall be provided.


The Grievance Redressal Mechanism (GRM) shall provide for resolving any disputes arising out of the decisions of the company's functionaries. All disputes arising out of the Company's functionaries shall be heard and disposed of at least at the next higher level.

The GRM shall provide for the following:

  1. The system and the procedure for receiving, registering and disposing of complaints and grievances in each of its offices.
  2. The procedure shall define - where and how the complaint/grievance (used interchangeably) is to be filed, turnaround for the reply, appellate mechanism if not satisfied with the initial resolution of complaint.
  3. Acknowledgement shall be provided with the reference number for the complaints received and also state the name of the officer who would deal with the complaint.
  4. The process of informing the customer about the above stated system and procedure for redressing their complaints at a faster pace.
  5. The complaints received shall be resolved in a maximum of 30 days period

The mechanism so approved by the Board of Directors shall nominate a Company's official as the Grievance Redressal Officer who can be approached by the public for resolution of complaints against the Company.

For the benefit of the customers at the operational level, the company shall display the name and contact details (Telephone/Mobile no. and Email address) of the Grievance Redressal officer prominently at each of its branches and places where the business is transacted.

For the information of the Customers, if the customer's complaint / dispute is not redressed by the Grievance Redressal Officer within a period of one month, the customer may appeal to the Officer-in-Charge of the Regional Office of the Department of Non-Banking Supervision (DNBS) of the Reserve Bank of India (RBI), Mumbai under whose jurisdiction the registered office of the Company falls.


The Code shall be reviewed annually or earlier if deemed necessary by the Board of Directors of the Company.