Fair Practise Code


Based on the guidelines issued by RBI, SCPL follows a fair practice code with respect to customer lending and various other business handlings

  • All the customers are educated in the vernacular language about the procedures and methods of business.
  • At the centre meetings, the target groups are informed about the KYC documents, loan eligibility, repayment structure, etc.
  • The authorized employee of the organization identifies the right customers who are interested in our business products. Such identified customers are enlightened with the products, history of the organization, centre meetings, loan disbursement methods, repayment procedure, etc. The authorized staff provides the CGT (compulsory group training) to such identified customers.
  • The identified member is inducted into the program via GRT (group recognition test).

DOCUMENTS COLLECTED

KYC documents such as Ration card, Aadhar Card, or Voter id are collected from the member. Along with KYC, various other details about the member such as indexing of house, name, age, education, marital status, occupation, family member details, residential history verification is collected.


METHODOLOGY

All the communication is done in vernacular language that is understood by the members which is the first most important thing in identifying the member. After identification and collection of necessary documents, the customer is processed with the loan procedures.

The member is educated with all the clauses present in the loan application which includes

  • Tenure of loan
  • Interest rate
  • Repayment procedure & structure
  • Current loan details
  • Subjects of the previous loan
  • Eligibility criteria based on the previous loan
  • Guarantor details
  • Acceptance by the group members and family members.
  • The customer is educated/ informed about the time frame that would be needed for the loan disbursal.

APPRAISAL PROCEDURE

One of the important criteria is the loan appraisal procedure which makes a member or a group of members to be a regular customer of the organization. Members are informed about the appraisal procedures and methods that are followed as criteria.

  • Repayment history.
  • Attendance in center meetings.
  • Information about change in residence.
  • The purpose for which the loan is borrowed.
  • Proper utilization of borrowed loan.
  • The opinion of the group members.
  • Repayment capacity based on the current earnings of the borrower.
  • Existing loan and repayment history with other SHG and NBFC.

As guided by RBI, a member is educated in vernacular language as understood by the consumer, and a photocopy of the agreement is provided in the local language (preferably). Acceleration of payment, recall of payment, submission of documents in subject with completion of dues, etc are mentioned in the agreement.


CHANGE IN TERMS AND CONDITIONS

A change in the terms and conditions about the loan disbursement is informed to the members very much earlier before the date of commencement of procedure. A letter is forwarded to each and every member and informed in the centre meetings by the authorized employee of the organization.

KYC documents collected from the members are placed safely in the office premises which can be accessed only by the authorities appointed by the organization. The access is made possible only after proper approval.

The member also is intimated about the release of all the documents in lieu of the closure of all dues on the outstanding amount. Along with if the customer has the interest to go for further withdrawal after the outstanding period, intimation about holding the document for future purposes is also intimated to the member.