Fair Practices Code

Brand : ClapCredit
NBFC License Holder: SURYA-SHAKTI VYAPAAR PRIVATE LIMITED (Registered with Reserve Bank of India)

Purpose of the Code

This Fair Practices Code has been adopted to ensure transparent, ethical, and customer-friendly lending practices. It outlines our commitment to dealing with borrowers in a fair and professional manner, in line with RBI’s Fair Practices Code for NBFCs.

Interest Rate & Charges Transparency

• Interest rates are determined using an approved Interest Rate Model that considers the cost of funds, risk profile, and market conditions.
• Loan terms—amount, tenure, interest rate, EMI schedule—are clearly mentioned in the Sanction Letter.
• All penal interest charges for delayed payments are stated prominently in the loan agreement.
• Other charges such as processing fees, prepayment charges, documentation fees, and applicable taxes are disclosed upfront.

Loan Application & Processing

• Every loan application is acknowledged with a reference or application number.
• Borrowers are informed about the timeframe for loan processing.
• A Sanction Letter is issued upon approval, containing all terms and conditions.
• Copies of the loan agreement and all relevant enclosures are given to the borrower in a clear, understandable format.

Communication Standards

• All communication is in clear, simple language and avoids misleading statements.
• Any change in terms (e.g., interest rates, charges) is communicated in advance and applied prospectively.
• Borrowers have access to loan statements and account details on request.

Recovery Practices

• Recovery of overdue loans is done in a respectful, lawful, and non-coercive manner.
• Field staff are trained to follow a code of conduct when engaging with customers.

Grievance Redressal

• A Grievance Redressal Officer (GRO) is appointed to handle complaints promptly.
• GRO contact details are displayed on our website and at our registered office.
• If a complaint is not resolved within 30 days, the borrower can escalate it to the Reserve Bank of India – Regional Office.

Review & Compliance

This policy is reviewed annually by the Board of Directors to ensure ongoing compliance with regulatory requirements and to reflect best industry practices.