Fair Practices Code

Fair Practices Code

IIFL Finance Ltd. (IIFL) has adopted this code to provide transparency in business dealings with its customers.

  1. To promote good and fair practices by setting minimum standards in dealing with customers;
  2. To increase transparency so that the customer can have a better understanding of what they can reasonably expect of the services;
  3. To promote a fair and cordial relationship between customer and IIFL

This code shall apply to all employees of IIFL and other persons authorized to represent it in the course of its business, whether the products and services are provided across the counter, over the phone, by post, through interactive electronic device, on the internet or by any other method. This code will also be displayed on the notice board in all the branches and also on the website of the Company.

IIFL shall adhere to this code to act fairly and reasonably in all dealings, on the ethical principle of integrity and transparency, to meet the standard practices prevalent in the industry

IIFL would provide clear information, without any ambiguity, to the customers in understanding:

  1. The products and services together with its terms and conditions including interest and service charges.
  2. The benefits available to customer.

IIFL will deal quickly and sympathetically in attending to the customer's complaints in light of the objectives of this code

IIFL shall treat all personal information of customers as private and confidential and shall not divulge any information to third person unless required by any law or Government authorities including Regulators or Credit agency or where the sharing of information is permitted by the customer.

IIFL would provide, on request, copy of the code to the borrowers.

IIFL shall not discriminate its customers on the basis of race, caste, gender, marital status, religion or disability. However the restrictions, if any, as mentioned in the loan products shall continue to apply.

IIFL shall refrain from interference in the affairs of the borrowers except for the purposes provided in the terms and conditions of the loan agreement (unless new information, not earlier disclosed by the borrower, has come to the notice of the lender)

IIFL shall not discriminate its customers on the basis of race, caste, gender, marital status, religion or disability. However the restrictions, if any, as mentioned in the loan products shall continue to apply.


IIFL would provide information on interest rates, common fees and charges through:

  1. Putting up notices in branches.
  2. Through telephones or help lines.
  3. Through designated staff/help desk.
  4. Providing service guide/tariff schedule.
  5. Publishing on the website of the Company.

IIFL shall ensure that all advertising and promotional material is clear and not misleading. The Fair Practice Code shall also apply to sales associates / representatives of the company to the extent of their identification when they approach the customer for selling products personally. In case of any advertisement in any media and promotional literature that draws attention to a service/product and its interest rate, IIFL shall also provide the details of other fees or charges, if any.

IIFL would give information about customers to credit reference agencies on: -

  1. Opening of an account.
  2. The customer fallen behind with his/her payments and the performance of loan account which includes how much loan has been sanctioned and the subsequent performance
  3. Legal proceedings have been initiated against the customer to recover the dues.
  4. Debts settled through legal recourses against the customer

IIFL may give credit reference agencies other information about the customer's account if law requires it or the customer has given them his/her permission to do so.

IIFL shall explain the requirements of KYC guidelines to its customers and inform them about the documents required for establishing the identity of the customer before loan sanctioning, account opening and operation. IIFL shall also put the KYC requirements and filling up the same on the website of IIFLwww.iifl.comfor the benefits of the customers.

IIFL would obtain only such information to meet with company's KYC, Anti-Money Laundering or any other statutory requirements. In case any additional information is asked for, it will be sought separately and shall specify the objective of obtaining such additional information.

Applications for loans and its processing:
  1. All communications to the borrower shall be in the vernacular language or a language as understood by the borrower
  2. Loan application forms issued by the Company shall include necessary information which affects the interest of the borrower, 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 loan application form shall indicate the documents required to be submitted with the application form.
  3. The Company shall give acknowledgement for receipt of all loan applications. The time frame within which loan applications will be disposed would also be indicated in the acknowledgement. The Customer may contact the customer service team to obtain an update on the status of the application.

If IIFL cannot provide the loan to the customer, it shall communicate the same to the customer through its appointed representatives or directly to the customer verbally. In case customer requires the same in writing the reason(s) for rejection may be provided in writing.

Loan appraisal and terms and conditions:
  1. The Company shall convey in writing to the borrower by means of sanction letter or otherwise, the amount of loan sanctioned along with the terms and conditions. The said letter shall include annualised rate of interest and method of application thereof. The Company shall keep the acceptance of these terms and conditions by the borrower on its record.
  2. The Company shall mention the penal interest charged for late repayment in bold in the loan agreement.
  3. A copy of the loan agreement along with a copy each of all enclosures quoted in the loan agreement would be furnished to all the borrowers at the time of sanction / disbursement of loans.
  4. The Company shall have a built in re-possession clause in the contract/loan agreement with the borrower which must be legally enforceable (in case of vehicle financing).
  5. The terms and conditions of the contract/loan agreement for Commercial Vehicle shall also contain following provisions:
    • Notice period before taking possession;
    • Circumstances under which the notice period can be waived;
    • Procedure for taking possession of the security;
    • Provision regarding final chance to be given to the borrower for repayment of loan before the sale / auction of the property;
    • Procedure for giving repossession to the borrower; and
    • Procedure for sale / auction of the property.
  6. The loan agreement for lending against gold shall disclose details regarding auction procedure. The Company shall follow transparent auction procedure in case of non-repayment with adequate prior notice to the borrower. The auction shall be announced to the public by issue of advertisements in at least two newspapers, one in vernacular language and another in national daily newspaper,
Disbursement of loans including changes in terms and conditions:
  1. The Company would give notice to the borrower of any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges etc. The Company shall also ensure that the changes in interest rates and charges are effected only prospectively. A suitable condition in this regard should be incorporated in the loan agreement.
  2. Decision to recall / accelerate payment or performance under the agreement would be in consonance with the loan agreement.
  3. All the securities offered by the borrower shall be released on repayment of all dues or on realisation of the outstanding amount of loan subject to any legitimate right or lien for any other claim that the Company may have against the borrower. If such right of set off is to be exercised, the borrower shall be given notice about the same 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.
  4. In case of receipt of request from the borrower for transfer of borrowal 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 request. Such transfer shall be as per transparent contractual terms in consonance with law.
  5. The Company shall not charge foreclosure charges/ pre-payment penalties on all floating rate term loans sanctioned for purposes other than business to individual borrowers with or without co-obligant(s).

Whenever loans are given, IIFL would explain to the customer the repayment process by way of amount, tenure and periodicity of repayment. However, if the customer does not adhere to repayment schedule, a defined process in accordance with the laws of the land shall be followed for recovery of dues. The process will involve reminding the customer by sending him/her notice or by making personal visits and / or repossession of security, if any.

IIFL staff or any person authorized to represent the company in collection of dues or/and securityrepossession shall identify himself / herself and display the authority letter issued by the IIFL, and upon request display his/her identity card issued by the IIFL or under authority of the IIFL. IIFL shall provide the customers with all the information regarding overdue. The staff shall be adequately trained to deal with the customers in an appropriate manner.

During visits to customer's place by the person authorized by IIFL for dues collection or/and security possession/repossession the following guidelines shall be followed:

  1. Customer would be contacted ordinarily at the place of his / her choice absence of any specified place at the place of his / her residence and if at his / her residence, at the place of business / occupation.
  2. Identity and authority to represent the Company shall be made known at the first instance.
  3. Customer’s privacy should be respected.
  4. Interaction with the customer shall be in a civil manner.
  5. The Company representatives shall contact the customers between 0700 hrs and 1900 hrs unless the special circumstances of the customer’s business or occupation may otherwise so require.
  6. Time and number of calls and contents of conversation would be documented.
  7. All assistance should be given to resolve disputes or differences in a mutually acceptable and orderly manner.
  8. During visits to customer’s place for dues collection, decency and decorum shall be maintained.
Branch Closure/ Shifting:

IIFL shall inform the customer in the event of closure/shifting of its branch offices.

Communication with the customer:

Customers should be able to access the Company through any of the following means:

  1. Walk in to the branches (as mentioned in Company brochure/website/any other leaflet)
  2. Telephone, fax, email id and website (as mentioned in Company brochure/website/any other leaflet)

IIFL would strive for customer satisfaction within the framework of law, adopted policies and procedures.

The Company has a separate policy in place with respect to Grievance Redressal. The same is displayed on the website of the Company www.iifl.com and may be referred to for details pertaining to grievance redressal process and escalation matrix.

Policy for determining Interest Rate

To ensure that the customers are not charged excessive interest rates and charges on loans and advances by the Company, the Board of the Company has adopted a Policy on Interest Rate Model and Policies & Procedures on Determining Interest Rates. The same has been put up on the Company's website www.iifl.com.

IIFL reserves the right to amend /alter /modify the codes as mentioned herein above and provide updates from time to time, not affecting/sacrificing the underlining spirit of the code. Such alternation/amendments may be displayed at the notice boards of the branches /Corporate Office/ website of the Company for the benefit and information of the customer.