Fair Practice code

Introduction
NDX P2P Private Limited (herein referred as “LiquiLoans” or “the Company”) is registered with the Reserve Bank of India and holds a Peer-to-Peer Non-Banking Financial Company license and incorporated under the provision of the Companies Act, 2013 and is in the business of facilitating borrowing and lending through its online platform. The Company has formulated this Fair Practice Code (FPC) based on RBI’s Master Directions - Non-Banking Financial Company – Peer to Peer Lending Platform (Reserve Bank) Directions, 2017, updated time to time.

This Fair Practice Code (FPC) is aimed to provide to all the stake holders, especially Participants effective overview of practices followed by the Company in respect of the financial facilities and services offered by the Company The objectives of the Code are:

  • To promote good and fair practices in dealing with participants
  • To increase transparency so that the participants can have a better understanding of what they can reasonably expect of the services.
  • To strengthen mechanisms for redressal of customer grievances.

Any term used herein but not define shall have same meaning assign as per the Master Directions - Non-Banking Financial Company – Peer to Peer Lending Platform (Reserve Bank) Directions, 2017, updated time to time.

A. Applications for Loans and their Processing

  • All communication to the Participants shall be in English.
  • All documentations and terms and conditions, including details on the website such as the privacy policy, User Terms, etc. shall be maintained in English.
  • Users using translation services while using the Platform will do so at their own peril as LiquiLoans does not guarantee that the translation provided will be accurate and urges borrowers to view the website in English.
  • LiquiLoans provides a detailed procedure for registration and the benefits accrued from lending/ borrowing through its Platform in the frequently asked questions which is available on https://www.liquiloans.com/faq.
  • A detailed terms and conditions will be provided by LiquiLoans which is to be accepted by the User during and post the onboarding process on the Website. LiquiLoans strongly urges Users to obtain appropriate independent professional advice (as deemed fit) before proceeding to borrow any money using the Website.
  • Normally, all particulars required for processing the Loan Application will be collected by the Company at the time of application. In case it needs any additional information, the customer will be informed to provide the same.
  • LiquiLoans shall carry out Borrower’s due diligence to ascertain the credit worthiness of Borrower which will be an important parameter in taking decision of the application before listing of any Loan Application on P2P platform for funding by Lender.
  • The Borrower can access the Borrower dashboard of the LiquiLoans’ Platform, and in case the Borrower wishes to revise the interest rate or the tenure proposed, the same can be done through the dashboard.
  • An email confirmation shall be provided to the User acknowledging the receipt of the loan application/registration on its website.
  • LiquiLoans will provide a time frame for processing the loan application at the time of registration.

B. Loan Appraisal and Terms & Conditions

  • LiquiLoans will send the sanction letter via email to the Borrower if his application is approved. The sanction letter will lead him to the online Member account that contains the amount of loan, the annualised rate of interest, the payment schedule and the other terms and conditions for disbursement of the loan.
  • The Company shall also mention the penal charges for late repayment and any interest, charge or fee other than those specified in the sanction letter or otherwise in bold in the loan agreement.

C. Disbursement of Loans

  • Users shall have to meet the eligibility criteria as sanctioned in the policy approved by the Board of Directors of LiquiLoans.
  • The Board of Directors of LiquiLoans shall always review the eligibility criteria in consonance with the law as well as determine the pricing of services provided by it.
  • The Board of Directors shall formulate rules, which may be amended from time to time, which ensures that the Platform is run in an equitable and non- discriminatory manner.

D. Loans Sourced over Digital Lending Platforms

Wherever digital lending platforms are engaged by the Company to facilitate lending, the Company shall comply with the following:

  • To display on the Company’s website the Names of digital lending platforms engaged as agents.
  • Loan Disbursal, Servicing and Repayment - Shall ensure the disbursement of amount shall be made into the account of the borrower except of disbursals covered exclusively under statutory or regulatory mandate. Digital lending platforms engaged as agents shall be directed to disclose upfront to the participants, the Company’s name on whose behalf they are interacting with the participants.
  • Immediately after sanction but before execution of the Loan agreement, the sanction communications shall be issued to the borrower on the letter head of the Company.
  • Adequate efforts shall be made towards creation of awareness about the grievance redressal mechanism.

E. General

  • The Company shall not interfere in the affairs of the borrower except for the purposes provided in the Loan Agreement unless new information not earlier disclosed by the borrower has come to the notice of the Company.
  • In the event of any new information regarding the Borrower is made available to the Lender, the Lender may disclose the same to LiquiLoans. LiquiLoans undertakes that when it acts on the same, it shall not in any manner interfere in the functioning of the Borrower during the Transaction and thereafter.
  • In the matter of recovery of loans, the Company will always adhere to the relevant directives issued by the Reserve Bank of India. The company will not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans, etc. To avoid rude behavior from the staff of the Company, the Company shall ensure that the staff are adequately trained to deal with the borrowers in an appropriate manner.
  • The Borrower will be informed of any actions taken in response to their application or request related to loans within 21 days from the date of receiving the application or request.
  • The Company shall not discriminate in extending products and facilities including loan facilities to physically/ visually challenged applicants on grounds of disability.

F. Collection of Dues

The Company shall always adhere to the relevant directives issued by the Reserve Bank of India for the collection of outstanding dues. The company shall put in place a mechanism for identification of the borrowers facing repayment related difficulties, engagement with such borrowers and providing them necessary guidance about the recourse available. The Company shall adhere to below while undertaking recovery:

  1. Telephonic contact to a Borrower by a recovery agent may normally be limited to between 08:00 Hrs. and 19:00 Hrs. unless the special circumstances of the Borrower’s business or occupation demands otherwise.
  2. the Borrower would be contacted ordinarily at the place of his choice and in the absence of any specified place he will be contacted at his/her residence in the place of employment/ business.
  3. inappropriate occasions such as bereavement in the family or such other calamitous occasions would be avoided for making calls/ visits to collect dues.
  4. Recovery agent should identify himself/herself to the borrower and apprise the borrower of the authority to represent.
  5. Borrowers’ privacy should be respected.
  6. Interaction with the borrower shall be in a civil manner.
  7. Time and number of calls and contents of conversation would be documented.
  8. All assistance should be given to resolve disputes or differences in a mutually acceptable and orderly manner.
  9. During visits to borrowers' place for dues collection or over the calls made, decency and decorum shall be maintained.

The Liquiloans shall facilitate the collection services to its lenders however it shall not assume any credit risk, either directly or indirectly, arising out of transactions carried out on our P2P platform. In other words, entire loss of principal or interest or both, if any, in respect of funds lent by lenders to borrowers on the platform shall be borne by the lenders only.

G. Information Secrecy

All personal information of the participants would be confidential and would not be disclosed to any third party unless to be agreed by the participants. The term 'Third party' excludes all Law enforcement agencies, Credit Information Bureau, Reserve Bank of India, other banks/ financial and lending institutions.

Subject to above Para, customer information would be revealed only under the following circumstances:

  • If LiquiLoans is compelled by law
  • If it is in the Public Interest to reveal the information
  • If the interest of LiquiLoans requires such disclosure.

H. Grievance Redressal Mechanism

  • The Board of Directors of LiquiLoans (“Board”) have laid down the appropriate Grievance Redressal Mechanism within the organization to resolve disputes arising in this regard. The Grievance Redressal Mechanism has been set up to ensure that all disputes arising out of the decisions of the Company’s functionaries are heard and disposed of at least at the next higher level. Detailed grievance redressal mechanism is placed at the website https://www.liquiloans.com/customer-grievances-redressal-mechanism of the Company for easy reference of the Participants.

I. Review

A periodical review (at least annually) of the compliance of the Fair Practices Code and the functioning of the grievance redressal mechanism shall be carried out by the Company and the report of such reviews shall be submitted to the Committee of the Board / Board.

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