I. Loan Approval Process

1. The client will approach the company to get a loan.

    The company will find out from the client regarding
    • what amount?
    • what purpose?
    • what tenure?
    • what capacity to repay the loan?
    • what collateral?
    • what is the credibility of the client?
    • what is the quantity of the asset given for collateral?
    Explain to the client the norms, rules, and procedures as well as his responsibilities
    Answers all the questions and concerns of the client

    2. Once the first step is over, of finding out the information and after the collection of data, a thorough data check/analysis is conducted

    3. The management discusses the case and once it is found credible, the customer is issued a sanction letter.

      II. Loan Disbursement Process

      1. The sanction letter will have all the conditions as well as the interest rate, along with the repayment schedule.
      2. The interest rate charges are ranging from 24% per anum to 30% per anum
      3. The whole loan process from approval to disbursal is completed within a weak

      There is no loan processing fee
      There is no charge for early loan closure

      III. Fair Practice Code

      FAIR PRACTICES CODE (as amended on 30th December 2023)

      • Pursuant to the Notification issued by the Reserve Bank of India by its Circular No.RBI/2006-07/138 DNBS (PD) CC No.80/03.10.042/2005-06 dated 28th September 2006 (as updated by RBI from time to time), Sundaram Finance Limited (referred to as the “Company”) has formulated this Fair Practices Code to lay down the following procedures/practices in dealing with the lending business. This Code has come into force with effect from 1st November 2006 as amended from time to time.

      i) Applications for loans and their processing

      1. All communications to the borrower shall be in paper in English or Kannada as understood by the borrower.
      2. Loan Application Forms include necessary information, which affects the interest of the borrower, so that a meaningful comparison with the terms and conditions offered by other NBFCs can be made and informed decision can be taken by the borrower. The loan application form indicates the documents required to be submitted with the application form.
      3. The Company shall not insist on Application Form on pre-approved loans.

      ii) Loan appraisal and terms/conditions

      • The Company shall convey in writing to the borrower by means of sanction letter. The amount of loan sanctioned along with the terms and conditions including annualised rate of interest and method of application thereof. The Company shall keep the acceptance of these terms and conditions by the borrower on its record. The Company shall also communicate to the borrower if the loan is rejected. The Company shall mention the Additional Interest charged for delayed repayment in bold in the loan agreement.
      • 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 upon the disbursement of loans.

      iii) Disbursement of loans including changes in terms and conditions

      1. The Company shall give notice, either in paper or digital form to the Borrower of any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges etc. The Company shall ensure that changes in interest rates and charges are effected only prospectively. A suitable condition in this regard be incorporated in the loan agreement.
      2. Decision to recall loan / accelerate payment or performance under the agreement shall be in consonance with the loan agreement.
      3. The Company shall release all securities on repayment of all dues under the subject loan, subject to any legitimate right or lien for any other claim, the Company may have against the borrower either in his/her capacity as the borrower or co-borrower or guarantor in any other loan with the company. If such right of set off is to be exercised, the borrower shall be given notice, either in paper or digital form 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.

      iv) General

      1. 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 the notice of the Company).
      2. In the matter of recovery of loans, consistent with its policy over the years, the company shall not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans, etc. The Company’s staff are adequately trained (including not to behave rudely with the customers) to deal with the customers in an appropriate manner. The contract / loan agreement with the borrower shall contain the repossession clauses in line with RBI Circular No.RBI/2008-09/454 DNBS (PD) CC. No.139/03.10.001/2008-09 dated 24th April 2009, and as updated from time to time.

      v) Grievances

      Sri Ravi Siddappa, Director Operations, RSK Fund Finance Private Limited, No:806/2, BM Road (Next to IDBI Bank), BIDADI-562109, Ramanagaram Dist., Ph: 080 27282229 / +919740184404 and / or Mr.Shrinivas Angadi, Director Ph: 08027282229 / +919686356396, Email address: rskfund@gmail.com are the Grievance Redressal Officers under the Fair Practices Code who can be approached by the public
      for resolution of complaints against the Company.

      • The Company ensures that all customer grievances/complaints are redressed within the stipulated time frame of one month. 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 Department of Supervision (DOS), Reserve Bank of India, Nrupatunga Road, Bangalore-560001 Tel: 080 22180667, under whose jurisdiction the registered office of the Company falls.
      • For the benefit of our customers, the above information on “grievances” is displayed at our office where business is transacted. *In addition, complaint boxes have been kept at our office to enable complaint letters to be physically lodged by the customers and a log book is being maintained for the same. The physically lodged compliant letters, if any, are sent to the Grievance Redressal Officers within 2 working days from the date of receipt, for redressal.

      Gradation of Risks

      The rate of interest specified for each loan is at monthly rests, with the corresponding annualised rate being arrived at through interest rate model which takes into account relevant factors such as cost of funds, margin and risk premium. We take a comprehensive approach to the gradation of risk, that does not discriminate between borrowers in the same class, but rather tailors the interest rate to each loan. The decision to sanction a loan and the rate of interest thereon are carefully assessed on a case by case basis based on multiple factors which may include the borrower’s cash flows (past, current and projected), borrower’s other financial commitments, the borrower’s credit
      record, the security for the loan as represented by underlying assets or other financial guarantees etc. Such information is gathered based on information provided by the borrower, credit reports, market intelligence and information gathered by field inspection.

      Interest Rate Policy

      1. Background

      • As per Reserve Bank of India Guidelines, Board of each NBFC shall approve an Interest Rate Model for the Company, taking in to 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. Board of Directors in its meeting held had adopted the interest rate model of the company.
      • Our interest rate policy is designed to balance the needs of our customers with the financial viability of our business.

        2. Interest Rate Model

        • The Company lends money to its customers through Fixed loans to cater to the needs of different categories of customers.
        • Risk Premium: The risk premium will be different for different categories of borrowers. The risk premium will depend on i) customer attributes, ii) business viability of the borrowers, iii) asset attributes and (iv) loan attributes, (v) payment behaviour, (vi) credit history, etc.

        3. Fixed and Floating Rate

        The company offers fixed rate on loans based on customers’ needs.
        Fixed rate loans are loans where the interest rate charged to the customer will not change during the tenor of the loan.

        4. Revision to Lending Rate

        The revision to Lending Rate would be decided periodically, depending upon market trends and volatility in terms of both liquidity and interest rate, and changes in other factors specified above.

        5. Annualised Rate

        The interest would be charged on yearly rests. The customer would be provided an
        annualised rate of interest in the sanction letter.

        6. Communication

        • Interest rates would be intimated to the customers at the time of sanction / availing of the loan.
        • Interest Rate Policy would be uploaded on the website of the company and any change in the interest rate range would be uploaded on the website of the Company.
        • No service charges will be collected upfront.

        Penal Charge for Default in Payment

        The Company was hitherto charging additional interest on defaulted payments. Pursuant to the RBI Notification bearing no. RBI/2023-24/53 – DoR.MCS.REC.28/01.01.001/2023-24 dated 18th August 2023, the Company shall hereafter levy Penal Charges, as applicable for the respective products, on the defaulted payments from the due date till the date of receipt, subject to the overall rate of Penal
        Charges not exceeding 36% p.a.

        Review of the Fair Practices Code

        *Compliance with respect to all aspects of the Fair Practices Code shall be reviewed by the Board annually.