- The Bank’s loan application form will be comprehensive to the extent practical. Specific information as may be required based on specifics of the transaction structure and product offered will be obtained separately on a case-to-case basis.
- The Bank shall provide acknowledgement for receipt of all loan applications, which shall also indicate the time frame within which loan applications will be disposed off.
- It will be ensured that loan applications are ordinarily verified within a reasonable period after receipt of the application, and if any additional details / documents are required for the purpose of credit appraisal, the borrowers will be intimated immediately.
- All information relating to charges / fees for processing will be conveyed to the borrower upfront so that the borrower gets information regarding ‘all-in-cost’ for a particular credit transaction.
- If after due consideration, the proposal is admitted for conducting detailed due diligence, indicative terms including ‘all-in-cost’, inter alia fees / charges if any payable for processing, refundability or otherwise of such fees and other charges in case of non-acceptance of the proposal or cancellation of sanction, prepayment options and other terms that may affect the interest of the borrower, will be communicated to the applicant for confirmation.
- The Bank shall ensure that such charges / fees are non-discriminatory. Such information will be displayed on the Bank’s website for all categories of loan products.
- If after due consideration, the proposal is rejected at the preliminary stage with the approval of relevant delegated authority, the decision and reasons thereof will be communicated to the applicant in writing within a reasonable period for all categories of loans irrespective of any threshold limit.
- It will be ensured that there is a proper assessment of credit requirement of the borrower. Credit limit that may be sanctioned, will be mutually agreed with the borrower, having regard to Bank’s norms and parameters under the relevant lending programme.
- Stipulation of margin and security will be based on due diligence and creditworthiness of borrower and the Bank will not use margin and security stipulation as a substitute for due diligence on credit worthiness of the borrower.
- Bank will advise the sanction terms to the borrower and keep on record the borrower’s acceptance to the same, given with the full knowledge of the borrower.
- Terms and conditions and other caveats governing the credit facilities sanctioned by the Bank that may have been arrived at after negotiations with the borrower will be reduced in writing in the form of loan agreement / undertaking / other similar documentation. A copy of such agreement / undertaking / other similar documentation will be made available to the borrower for its record.
- The loan agreement / undertaking / other similar documentation will clearly specify disclaimer of liability / commitment of the Bank to the borrower with regard to allowing drawings beyond the sanctioned limits, meeting further financial requirements of the borrower on account of growth / expansion in business without review / revision and / or sanction of additional credit limits, and terminating availment of any facility upon classification of the borrower’s existing account as a non-performing asset or in the event of non-compliance by it with sanction terms.
- In case of lending under consortium arrangement, bank will ensure completion of appraisal of proposals in a time bound manner to the extent feasible and communicate its decision on financing or otherwise within a reasonable time.
- The Bank shall ensure timely disbursement of loans sanctioned, subject to the borrowers fulfilling conditions precedent and complying with the disbursement procedure as notified to the borrower in advance.
- The borrower will be given advance notice of any change in terms and conditions including interest rates, service charges etc, to the extent not specified in loan agreement / undertaking / other similar documentation. Any change in interest rate(s) and other charges are effected only prospectively unless otherwise specifically provided in loan agreement / undertaking / other similar documentation and except those imposed by regulatory / government authority which will be on back to back basis.
- In case of financing for Grassroots Enterprises, MSMEs, various other new products, which may be launched by the Bank, in future, where the exposure will be below Rs. 2 lakhs, post-disbursement supervision by the Bank/ its agent will be conducted so as to take care of any “lender related” genuine difficulty that the borrower may face.
- Bank will give notice to the borrowers of such period as may be specified in loan agreement / undertaking / other similar documentation or within a reasonable period if no such provision exists therein, before taking any decision to recall / accelerate payment or performance under the loan agreement / undertaking / other similar documentation or seeking additional securities.
- It will be ensured that all securities charged to the Bank are released on full satisfaction / realisation of loan, unless Bank has a legitimate right of lien / setoff for any other claim against the borrower or its group / associate company(ies) in which the promoters have direct interest or stood guarantee. If such right of set-off is to be exercised, borrower will be given prior notice about the same with full particulars of the remaining claim of the Bank and the document(s) under which Bank seeks to be entitled to retain the securities until relevant claim is settled / paid.
- The Bank shall restrain from interfering in the affairs of the borrowers except in accordance with the loan sanction documents (unless new information not earlier disclosed by the borrower comes to the notice of the Bank).
- Bank will not discriminate on grounds of sex, caste and religion in the matter of lending. However, this does not preclude Bank from participating in credit-linked schemes framed for weaker sections of society.
- In the matter of recovery of loans, Bank will not resort to undue harassment of the borrower by persistently following up with the borrower at odd hours or use of muscle power for recovery of loans.
- In the case of receipt of request for transfer of the borrower’s account, either from the borrower or from a bank / financial institution / another lender, which proposes to take over the account, the consent or otherwise i.e., objection of the Bank will be conveyed within 21 days from the date of receipt of the request.
- The Fair Practices Code shall be placed on the Bank’s website.
- Details of Penal Charges as applicable for all the loan accounts / sanctions by the Bank are available on the bank’s website https://www.eximbankindia.in/fairlending-practice.
- To seek redressal to their grievances, a borrower may write to a designated senior official whose contact particulars would be publicised on the Bank’s website and other publications of the Bank, clearly stating the nature of their grievance along with necessary documents, if any. A copy of the same will be acknowledged and returned to the borrower, where the complaints are received through letters / forms.
- The designated officer will initiate necessary action making all efforts to resolve the same expeditiously, but in any case within a period of about one month.
- A borrower aggrieved by any decision of the designated official may prefer a representation to the Appellate Authority. The Appellate Authority would generally be of the rank of Deputy Managing Director [DMD] of the Bank and in absence of a DMD, the Managing Director [MD] would be the Appellate Authority. The Appellate Authority will consider the representation and after making enquiries as he / she deems fit, inform the borrower his / her decision within a period of one month.
- The Bank has in place a mechanism to ensure that all disputes arising out of the decisions are heard and disposed of at least at the next higher level. A report in this regard will be submitted to the Board on an annual basis.
