Manikaran Credit & Leasing Co. Pvt. Ltd

Manikaran Credit & Leasing Co. Pvt. Ltd

Non-Banking Financial Company (NBFC) registered with Reserve Bank of India
NBFC registered with RBI
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Certificate of Registration No. B.14.02344 dated 3rd July 2003

FAIR PRACTICE CODE

MANIKARAN CREDIT AND LEASING COMPANY PRIVATE LIMITED Certificate of Registration No. B.14.02344 dated 3rd July 2003 All parts of this Code apply to all products and services offered by the Company – over the phone, in person, or through digital platforms.
  1. Introduction Manikaran Credit and Leasing Company Private Limited (“the Company”) is a Non-Deposit Taking Non-Banking Financial Company (Base Layer) registered with the Reserve Bank of India under Section 45-IA of the RBI Act, 1934. The Company is engaged in providing Vehicle Loans, Personal Loans, Business Loans, Loan Against Property, and Small Ticket Personal Loans. This Code aligns with: – Master Direction – Reserve Bank of India (Non-Banking Financial Company – Scale Based Regulation) Directions, 2023 [RBI/DoR/2023-24/106 | DoR.FIN.REC.No.45/03.10.119/2023-24]; and – Guidelines on Fair Practices Code for NBFCs [RBI/2011-12/470 DNBS.CC.PD.No.266/03.10.01/2011-12], as amended from time to time. The Code ensures: A. Fair and transparent dealings with customers. B. Equitable treatment and disclosure. C. Compliance with applicable regulatory standards. D. A structured grievance redressal mechanism.
  2. Loan Application and Processing
    1. All borrower communications will be conducted in English, Hindi, or vernacular language understood by the borrower.
    2. Application forms shall include all required information, documentation list, and indicative timeframes.
    3. Acknowledgement of each loan application shall be provided with an expected processing timeline.
    4. The Company operates on a fully digital documentation model. There is no physical/non-digital application process. All documents, agreements, KFS, and communications are collected, shared, and maintained in digital form only, ensuring efficiency, transparency, and ease of access for borrowers.
  3. Loan Appraisal, Sanction, and Key Facts Statement (KFS)
    1. The borrower will be informed in writing about the loan amount, tenure, interest rate, and repayment schedule.
    2. A Key Facts Statement (KFS) will be issued detailing interest rate, processing fee, charges, and repayment schedule.
    3. Borrowers shall receive a copy of the loan agreement and all enclosures at the time of sanction/disbursement.
    4. The Company provides a Key Facts Statement (KFS) to every borrower prior to disbursement, which comprehensively discloses all loan-related terms including interest rate, tenure, processing charges, penal charges, and total repayment obligation – ensuring complete transparency before the borrower commits to the loan.
  4. Penal Charges in Loan Accounts
    1. The Company does not charge any penal interest on delayed payments.
    2. Certain fixed administrative penal charges may apply (e.g., cheque/NACH bounce). These are clearly disclosed in the KFS and loan agreement.
    3. The Company has formulated a separate “Penal Charges Policy” displayed on its website for transparency.
  5. Disbursement and Changes in Terms
    1. Any changes in terms (including interest or repayment schedule) shall be communicated to borrowers in advance.
    2. Loan recall or acceleration shall comply with contract terms.
    3. Securities, where applicable, will be released within 30 days post full repayment.
  6. Loan Account Closure and Property Document Release Applicable only for secured loans (Vehicle Loans, Loan Against Policy).
    1. All security documents will be released within 30 days of full repayment.
    2. In case of borrower demise, documents will be handed to legal heirs as per Company procedure.
    3. Delays shall be communicated in writing with reasons.
  7. Regulation of Interest Rates
    1. The Company communicates the applicable rate of interest to the borrower at the time of loan sanction, clearly mentioned in the Key Facts Statement (KFS) and loan agreement.
    2. The borrower is informed whether the interest rate applicable on the loan is fixed or floating, along with the basis of such rate determination.
    3. All lending charges, including processing fees, documentation charges, and any other applicable fees, are intimated to the borrower upfront before disbursement.
    4. If any changes are made to the interest rate or other charges during the loan tenure, the borrower is duly intimated in advance, as per RBI guidelines.
    5. In cases where the rate of interest is revised, the borrower is given the option to either adjust the EMI amount or the loan tenure accordingly, and the revised rate of interest is re-communicated to the borrower explicitly.
  8. Repossession of Financed Vehicles Policy For Vehicle Loans only, the agreement will specify:
    • Notice period before repossession.
    • Waiver conditions for notice.
    • Procedure for repossession, resale, and borrower’s final repayment opportunity.
    • Borrower rights and communication protocols.
  9. Late Payment interest on delayed payments will be levied on compounding basis, as permitted under the Reserve Bank of India’s Master Direction – Non-Banking Financial Company – Scale Based Regulation (SBR) Directions, 2023 [RBI/DoR/2023-24/106 | DoR.FIN.REC.No.45/03.10.119/2023-24, dated 19th October 2023], and as amended from time to time. Such compounding of interest on overdue amounts will be applied in a transparent manner, duly disclosed to the borrower in the loan agreement and Key Facts Statement (KFS).
  10. Collection and Recovery Practices
    1. All recovery staff and agents are trained for professional, non-coercive conduct.
    2. No harassment, abusive language, or late-hour visits are permitted.
    3. Collections will follow the internal Collection Policy approved by the Board.
  11. Grievance Redressal Mechanism The Company has appointed a Nodal Officer & Grievance Redressal Officer: Mr. Ramandeep Singh Email: raman@manikaran credit.com Contact: +91 9811160006 Customers can submit written complaints at: B-46/1, Naraina Industrial Area, Phase II, New Delhi – 110027 or via email. Unresolved complaints may be escalated to the Reserve Bank of India under the Reserve Bank – Integrated Ombudsman Scheme, 2021.
  12. Digital Documentation Policy
      KYC Process: All customer KYC is completed online through the Company’s official website. Customers submit their KYC details digitally, which are then verified by the Company before proceeding to loan appraisal.

      Loan Approval: Loan approvals are granted only after successful completion and verification of the KYC process. No loan is approved prior to KYC verification.

      Loan Disbursement: Upon approval, the loan amount is disbursed directly to the borrower’s bank account. The Company does not disburse funds through any intermediary or third party.

      Loan Repayment: All loan repayments are collected directly into the Company’s designated bank account. The Company does not accept repayments through any agent, intermediary, or unofficial channel.

      Data Privacy: The Company does not share any customer data, personal information, or financial details with any third party, except as required by applicable law or regulatory authority.

      Ethical Collection Practices: The Company strictly prohibits the use of any method that causes public shame, humiliation, or undue pressure to borrowers. All collection and recovery activities are conducted in a professional, dignified, and non-coercive manner in accordance with the Company’s Board-approved Collection Policy.

      Documentation: All loan applications, agreements, KFS, and related records are collected, processed, and maintained digitally in full compliance with applicable regulatory requirements.

  13. Review of Code This Code shall be reviewed periodically by the Board of Directors to ensure ongoing compliance with RBI guidelines and operational relevance.
Updated and Revised by the Board of Directors on 30 Sept 2025 Effective from 1 Oct 2025