- To promote good and fair practices in dealing with the customers.
- To provide transparency in the transactions between MHFC and the customers, so that the customer can have an understanding of what he/she can reasonably expect of the services, from MHFC.
- To encourage market forces through competition, to achieve higher operating standards.
- To promote “fair and cordial relations”, between customer and MHFC.
- To foster confidence in housing finance system.
FAIR & TRANSPARENT DEALINGS
MHFC shall act fairly and reasonably in all dealings with the customers by ensuring the following:
- MHFC shall meet the commitments made and standards as per NHB’S guidelines on Fair Practices Code for the products and services that are being offered to the customers.
- The staff shall follow the procedures and practices as laid down by MHFC
- The products and services of MHFC shall meet the relevant laws and regulations in letter and spirit.
- The dealings of MHFC with the customers shall be based on ethical principles of “integrity and transparency”.
ADVERTISING, MARKETING AND SALES
MHFC shall ensure that:
- All advertising and promotional materials are clear and do not mislead the customers.
- MHFC shall ensure to provide the information on interest rates, fees and charges through
- Notices displayed at Branch premises
- Telephone or help lines
- Company’s website
- Designated staff/help desk
- MHFC had included all the questionnaires, columns and tables to elicit the information that is needed, in the application form, for taking credit decision.
- Applications received by MHFC shall be acknowledged with with date & signature.
Processing of Application form & terms and conditions
- In the normal course, all the information that is needed is collected from the applicant at the time of submission of application form.
- MHFC shall issue to the applicants the Sanction Letter after verifying the documents and the credit history etc., and shall convey the “Terms and Conditions” of sanction/approval.
Rejection of Loan
- MHFC shall intimate the applicant in writing, about his/her rejection of loan, in case the applicant does not meet the requirements/norms of MHFC.
Disbursement of Loan
- Disbursement shall be made in accordance with the terms and conditions stated in the “schedule” of the loan agreement.
- MHFC shall give notice to the borrower of any change in the terms and conditions.
- Decisions of MHFC to recall the advance or accelerate the payment or performance under the agreement or seeking additional securities shall be in consonance with the loan agreement or as per the norms/compliance of NHB.
- MHFC shall release all the securities charged to MHFC upon repayment of all dues, subject to right or lien for any other claim/guarantee, which is outstanding against the borrower.
When a person is considering to be a guarantor to a loan, he/she shall be informed by the authorized officers of MHFC office about:
- His/her liability as guarantor.
- The amount of liability he/she will be committing himself/herself to MHFC.
- Circumstances under which the MHFC will call on him/her to pay up the borrower’s liability.
- Whether MHFC has recourse to his/her other monies in MHFC, if he/she fail to pay up as a guarantor.
- Whether his/her liabilities as a guarantor are limited to a specific quantum or they are unlimited.
- Time & circumstances in which his/her liabilities as guarantor will be discharged as also the manner in which MHFC shall notify him/her about this.
PRIVACY AND CONFIDENTIALITY
All the information of the customers shall be treated as Private and Confidential. MHFC shall not reveal information or data relating to customer accounts, other than in the exceptional cases:
- If the information is required to be provided as per law of the country.
- If there is a duty towards the public to reveal the information.
- If the MHFC’s interests require them to give the information to prevent frauds.
- With the permission of the customer or if the customer asks MHFC to reveal the information.
- If MHFC is asked to give reference about the customer, MHFC shall obtain his/her written permission before giving it.
- MHFC shall not use customer’s personal information for marketing purposes, unless the customer specifically authorizes them to do so.
CREDIT REFERENCE AGENCIES
- MHFC in terms of the loan agreement executed by the borrower shall pass his/her account details to credit bureau and or other institutions in this regard.
- MHFC shall furnish the information to the credit reference agencies regarding the outstanding loans the borrower owes them if:
- The customer is irregular with his/her payments or EMIS/PEMIS are in arrears.
- The customer has not responded to MHFC formal recall/demand of the loan.
COLLECTION OF DUES
- MHFC shall inform the customer at the time of execution of loan documents, the repayment terms and conditions provided in the annexure to the loan agreement.
- MHFC shall always provide the customer the information regarding dues and shall endeavor to give sufficient notice for payment of dues.
- The staff of MHFC authorized for collections and/or possession of security shall follow the following guidelines:
- Customers shall be contacted ordinarily at the place of his choice and in the absence of any specified place, at the place of his residence, and if unavailable at his residence at the place of business.
- The staff of MHFC shall identify themselves; whenever/wherever they meet the customer for collections.
- The staff of MHFC shall respect the customer’s privacy.
- The interaction by the staff of MHFC shall be in a civil manner.
- The representatives of MHFC shall contact the customers as per the contact details provided by them and if not available to reach out to the customer through their relatives, friends etc.
- Time and number of calls and contents of conversation as far as possible shall be documented.
- All assistance shall be given to resolve disputes or differences regarding dues in a mutually acceptable and in an n orderly manner.
- The staff of MHFC and their representatives shall maintain decency and decorum, while visiting the customer’s place for collections.
COMPLAINTS AND GRIEVANCES
- MHFC shall adopt the system of receiving, registering and disposal of complaints and grievances at all its offices and are advised to maintain the following registers for registering the complaints.
- Customers shall be informed of the details of MHFC’s procedure for handling complaints fairly and quickly.
- The customer shall be informed of the procedure for making a complaint and the mechanism of redressal.
- If a complaint is received from a customer, in writing, MHFC shall endeavor to send him/her the acknowledgement /response within a week.
- MHFC shall send the final response to the customer, or explain why it needs more time to respond and shall endeavor to reply within six weeks of receipt of complaint.
- MHFC shall publish its grievance redressal procedure on its website.
MHFC shall verify the customer’s information:
- Verify the details stated by the customer in his/her loan application form by telephonic verification or through field investigation at his/her residence, and/or business, if deemed necessary.
- The customer shall be informed to co-operate, if MHFC needs to investigate a transaction, on customers account and with the police/other investigative agencies, if MHFC needs to involve them.
- MHFC shall advise the customer that if the customer acts fraudulently, he/she will be responsible for all losses on his/her account.
- MHFC shall give information of their products and services in any one or more of the following languages: English or the appropriate local language.
- MHFC shall not discriminate on grounds of sex, caste and religion in the matter of lending.
- MHFC shall process the request for transfer of loan account, either from the borrower or from a bank/ financial institution, in the normal course.
TO PUBLICISE THE CODE
- Make available this code on request either over the counter or by electronic communication or mail.
- Make available this code at every branch and on the website.
- MHFC shall ensure that its staff is trained to provide relevant information about the code and to put the code in to practice.