Fair Practice Code for Lark Finserv Private Limited - Digital Lending Company Providing Loans Against Securities
Purpose and Scope:
Lark Finserv Private Limited, herein referred to as "the Company," is committed to promoting fair and ethical practices in its digital lending operations, specifically for loans against securities. This Fair Practice Code (FPC) outlines the principles that guide the Company in providing transparent and responsible lending services to its customers.
Transparency and Disclosure:
2.1. The Company shall provide clear and accurate information about loan products, including interest rates, fees, charges, loan tenure, and prepayment options, to borrowers at the time of application and throughout the loan tenure.
2.2. All relevant terms and conditions of the loan agreement shall be provided to the borrower in a language they understand.
Non-Discrimination:
3.1. The Company will not discriminate against any borrower based on gender, religion, caste, disability, or any other discriminatory criteria.
3.2. Loan eligibility and approval decisions shall be based solely on objective and transparent criteria, including the value and liquidity of the securities provided as collateral.
Loan Application Process:
4.1. The loan application process shall be simple, accessible, and user-friendly, encouraging borrowers to avail of credit without unnecessary hurdles.
4.2. The Company shall clearly explain the loan application requirements and documentation to borrowers to ensure a smooth and efficient application process.
Privacy and Data Security:
5.1. The Company shall maintain strict confidentiality and safeguard the personal and financial information of borrowers.
5.2. Borrower data shall only be used for legitimate purposes related to loan processing and will not be shared with unauthorized parties.
Responsible Lending Practices:
6.1. The Company shall conduct a thorough assessment of the borrower's creditworthiness, taking into account their financial position and repayment capacity before granting a loan against securities.
6.2. Loan amounts offered shall be reasonable and commensurate with the value of the securities provided as collateral.
6.3. The Company shall ensure that borrowers fully understand the terms and conditions of the loan and are capable of servicing the debt responsibly.
Grievance Redressal Mechanism:
7.1. The Company shall establish an efficient and responsive grievance redressal mechanism for borrowers.
7.2. Borrowers can raise their complaints or grievances through various channels, and the Company shall address them promptly and fairly.
Debt Collection Practices:
8.1. The Company shall engage in fair, respectful, and non-coercive debt collection practices.
8.2. The Company shall not use intimidation or harassment to recover dues from borrowers.
Public Disclosure:
9.1. The Company shall provide all relevant information about its digital lending practices, including its Fair Practice Code, on its official website and other appropriate channels.
Compliance and Review:
10.1. The Company shall ensure compliance with all applicable laws and regulations related to digital lending and loans against securities.
10.2. The Fair Practice Code shall be periodically reviewed and updated as necessary to align with changing business and regulatory requirements.
This Fair Practice Code is an essential guiding document for Lark Finserv Private Limited, demonstrating the Company's commitment to fair, transparent, and responsible lending practices while providing loans against securities through its digital lending platform. The Code aims to protect the interests of borrowers, foster financial inclusion, and uphold the principles of ethical lending.