1 Introduction
The Board of Directors of BMW India Financial Services Private Limited (“Company”) have
approved the Fair Practice Code (“Code”) as required in terms of Reserve Bank of India
Circulars No. RBI / 2006-07 / 138 dated 28th September 2006 and RBI / 2007- 08 / 158
DNBS.PD / CC.No. / 03.10.042 / 2007-08 dated 10th October, 2007 to be followed in all
dealings with the borrowers of the Company.
The Fair Practices Code is aimed to provide to the customers effective overview of
practices, which will be followed by the Company in respect of the financial facilities
and services offered by the Company to its customers. The Code will facilitate the
customers to take informed decisions in respect of the financial facilities and services
to be availed by them and will apply to any loan that the Company may sanction and disburse.
2 Key Commitments and Declarations
Company's key commitments to customers:
2.1 Act fairly and reasonably in all their dealings with customers by:
2.1.1 Meeting the commitments and standards in this Code, for the products and services
offered by the Company, and in the procedures and practices followed by the staff;
2.1.2 Ensuring that products and services meet relevant laws and regulations;
2.1.3 Providing professional, courteous and speedy services;
2.1.4 Providing accurate and timely disclosure of terms and conditions, costs, rights
and liabilities as regards financial transactions; keeping the customer informed about
the changes in the interest rates, charges or terms and conditions.
2.2 Help customers understand how company's product work by:
2.2.1 Informing about the products;
2.2.2 Ensuring that advertisement and promotional material is clear and not misleading;
2.2.3 Stating clearly the rate of interest applicable and other terms and conditions;
2.2.4 Explaining their financial implications.
2.3 Help the customers use the products and services by:
2.3.1 Updating the customer about the product and services offered through website / customer
service helpline etc.
2.4 Deal quickly and professionally with any issues raised by:
2.4.1 Providing timely solutions for all complaints and reported errors
2.4.2 Informing customers on the complaint redressal process and related escalations
2.4.3 Informing and guiding customers on how & when their complaint will be addressed in
case of technical failure.
2.5 Publicise this Code by putting it on the website (as and when available) and have copies
available to customer on request and also ensure that the Company staff is trained to provide
information about the Code.
2.6 Not to discriminate the customers on the basis of race, age, caste, gender, marital status,
religion or disability.
3 Applications for loans and their processing
3.1 The Company will communicate the interest rate applicable and the fees / charges for
processing, prepayment option and charges if any,
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 customer should be informed about the annualized rate of interest along with the
method for the calculation of the same.
3.2 The Company will provide a list of documents to be submitted by the customer, which will
be part of the loan application form. If any additional details/ documents are required, the
same shall be intimated to the borrowers immediately.
3.3 The Company will give the customer an acknowledgement and give an indication of the number
of days it would take to process the application for every loan application.
3.4 The Company may conduct contact point verification through its employees or through an
agency appointed by it, by contacting the customer at their residence/business telephone numbers
or physically visit residence/business address mentioned on the loan application.
4 Loan appraisal and terms/conditions
4.1 The Company shall conduct a due diligence on the credit worthiness of the borrower, which
will be an important parameter for taking decision on the application. The assessment would be in
line with the Company’s credit policies, norms and procedures in respect thereof.
4.2 Upon approval of the loan a sanction letter/loan agreement indicating the amount of loan
sanctioned, the applicable interest rate including method of calculation, along with other terms
and conditions will be conveyed to the applicant in writing.
4.3 After the execution of the loan agreement, all borrowers will be furnished a copy of the loan
agreement along with a copy each of all enclosures quoted in the loan agreement.
5 Disbursement of loans including changes in terms and conditions
5.1 The Company shall frame appropriate internal principles and procedures for determining and
ensuring that the interest rates and processing and other charges are not excessive. The Company
shall, at the time of disbursal, ensure that the interest rate and processing and other charges on
loan and advances are in strict adherence to above referred internal principles and procedures.
5.2 The disbursement will be made upon compliance of all the terms and conditions of the sanction
letter/approval mail by the borrower.
6 Post Disbursal Supervision
6.1 The Company shall give a notice to the borrower of any change in the terms and conditions
including disbursement schedule, interest rates, service charges, pre-payment charges etc.
The Company shall also ensure that changes in interest rates and charges become effective
only prospectively.
6.2 The Company will give a notice to the customer before taking a decision to recall / accelerate
payment or performance or seeking additional securities in consonance with the loan agreement.
The changes may be effective retrospectively only with prior consent of borrower and BMW SF
6.3 The Company will release all securities on repayment of all dues or on realization of the
outstanding amount of loan subject to any
legitimate right or lien for any other claim the Company
may have against the customer.
Notice to the customer 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 will be given if such right of set off is to be exercised.
7 General
7.1 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).
7.2 In the matter of recovery of loans, the Company shall not resort to undue harassment like
bothering the borrowers at odd hours, use of muscle power for recovery of loans etc.
7.3 The Company will call delinquent customers between 0700 hrs to 2100 hrs unless special
circumstances of the borrower’s business require to call them otherwise outside the hours mentioned.
7.4 The Company may arrange for enforcing security charged to it of the delinquent borrower, if
required, with an aim only to recover dues and will not be aimed at whimsical deprivation of the property.
7.5 The Company shall ensure that the entire process of enforcing its security, valuation and
realisation thereof be fair and transparent.
7.6 In case of receipt of a request from the borrower for transfer of the borrower’s account,
the consent or otherwise i.e. objection of the Company, if any, shall be conveyed within 21 days
from the date of receipt of such request. Such transfer shall be as per transparent contractual
terms in consonance with law.
8 Customer Protection
8.1 The Company will treat its customer’s personal information as private and confidential and will
not reveal details of customer’s dealings to a third party, except as provided herein and in the
following exceptional cases:
8.1.1 If the information need to be given under the law.
8.1.2 If there is a duty towards the public to reveal the information.
9 Grievance Redressal Mechanism
9.1 The contact number for recording the grievances of the customers will be intimated in Loan Sanction
Form/Welcome Kit. In addition, a separate e-mail ID will be created where customer can send their
grievances via e-mail.
9.2 After examining the matter, the Company shall endeavor to send the customer its response
within four weeks and intimate the customer how to escalate the complaint to a higher level, if he
is not satisfied with the response.
9.3 The Company may request the customer to provide feedback on the services rendered. This can be
done through direct contact by staff or through specific customer satisfaction surveys that may be
conducted from time to time.
9.4 A periodical review of the Code and the functioning of the grievance redressal mechanism at
various levels of management would be undertaken by the Company and a consolidated report of such
reviews shall be submitted to the Board of Directors of the Company at regular intervals.
