Swarna Pragati Housing Microfinance Private Limited. (SPHM or the Company)’s endeavor is to provide financial services to the base of the pyramid segment to help build a society where everyone has a conducive habitat to live and work in with dignity and to be the preferred provider of innovative financial solutions for housing, particularly to Economically Weaker Section (EWS) and Low Income Groups (LIG) in rural and semi-urban areas. The vision of SPHM is to be the leader in the housing microfinance in the country, to create a decent habitat for all, to create value for all stakeholders by building a profitable business providing financial assess for housing in hitherto underserved areas. SPHM aims to achieve its mission and vision through the following values:
To place the customer’s interest first
To be transparent and ethical in approach in all dealings
To be sensitive towards social and environmental concerns
To encourage teamwork, professionalism and a culture of learning & innovation
To provide for transparency in transactions between the institutions and the end users and also to provide for well informed business relationships, some broad guidelines have been considered
necessary. In this backdrop, the National Housing Bank, has framed the Guidelines on Fair Practices
Code for HFCs to serve as a part of best corporate practices and to provide transparency in business
This Code has been formulated by SPHM, pursuant to the Guidelines issued by the National Housing
Bank (“NHB”) in terms of its circulars
All parts of this Code apply to all the products and services, whether they are provided by the Company across the counter, over the phone, by post, through interactive electronic devices, on the internet or by any other method.
In the event of receipt of any complaint from the customer that SPHM’s representative/courier or DSA has engaged in any improper conduct or acted in violation of this Code, appropriate steps will be initiated to investigate and to handle the complaint and to make good the loss.
If SPHM cannot provide the loan to the customer, it will communicate in writing the reason(s) for rejection.
When a person is considering being a guarantor to a loan, s/he will be informed about
All personal information of customers shall be treated as private and confidential (even when them customers are no longer customers), and will be guided by the following principles and policies. SPHM will not reveal information or data relating to customer accounts, whether provided by the customers or otherwise, to anyone, including other companies/entities in SPHM’s group, other than in the following exceptional cases:
4.8.1 Whenever loans are given, SPHM will explain to the customer the repayment process by way of amount, tenure and periodicity of repayment. However, if the customer does not adhere to the repayment schedule, a defined process in accordance with the laws of the land will 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.
4.8.2 SPHM’s collection policy will be built on courtesy, fair treatment and persuasion, and will be aimed at fostering customer confidence and a long- term relationship. SPHM’s staff or any person authorized to represent it in collection of dues and / or security repossession will identify himself/herself and display the authority letter issued by SPHM and upon request, display his/her identity card issued by SPHM or under authority of the company. SPHM will provide customers with all the information regarding dues and will endeavor to give sufficient notice for payment of dues.
4.8.2 All the members of the staff or any person authorised to represent SPHM in collection and / or security repossession will follow the guidelines set out below:
a) Customers will be contacted ordinarily at the place of his/her choice and in the absence of any specified place at the place of his/her residence and if unavailable at his/her residence, at the place of business / occupation.
b) Identity and authority to represent SPHM will be made known to the customer at the first instance.
c) Customer’s privacy will be respected.
d) Interaction with the customer will be in a civil manner.
e) SPHM’s representatives will contact customers between 0700 hrs and 1900 hrs, unless the special circumstances of the customer’s business or occupation require otherwise.
f) Customer’s request to avoid calls at a particular time or at a particular place will be honored as far as possible.
g) Time and number of calls and contents of conversation will be documented.
h) All assistance will be given to resolve disputes or differences regarding dues in a mutually acceptable and in an orderly manner.
i) During visits to customer’s place for dues collection, decency and decorum will be maintained.
j) Inappropriate occasions such as bereavement in the family or such other calamitous occasions will be avoided for making calls/visits to collect dues.
a) SPHM shall have a system and procedure for receiving, registering and disposing of complaints and grievances in each of its offices.
b) The Board of Directors of SPHM shall lay down the appropriate grievance readdress mechanism within the organization to resolve complaints and grievances. Such a mechanism shall ensure that all disputes arising out of the decisions of SPHM’s functionaries are heard and disposed of at least at the next higher level.
c) Customer will be told where to find details of SPHM’s procedure for handling complaints fairly and quickly.
d) If the customer wants to make a complaint, s/he will be told:
I. How to do this
II. Where a complaint can be made
III. How a complaint should be made
IV. When to expect a reply
V. Whom to approach for redressal
VI. What to do if the customer is not happy about the outcome.
VII. SPHM’s staff shall help the customer with any questions the customer has. e) If a complaint has been received in writing from a customer, SPHM will endeavour to send him/her an acknowledgement / a response within a week. The acknowledgement will contain the name & designation of the official who will deal with the grievance. If the complaint is relayed over phone at SPHM’s designated telephone helpdesk or customer service number, the customer will be provided with a complaint reference number and be kept informed of the progress within a reasonable period of time.
f) After examining the matter, SPHM will send the customer its final response or explain why it needs more time to respond and will endeavour to do so within six weeks of receipt of a complaint and s/he will be informed how to take his/her complaint further if s/he is still not satisfied.
g) SPHM shall publicize its grievance redressal procedure (e-mail id and other contact details at which the complaints can be lodged, turnaround time for resolving the issue, matrix for escalation, etc.) for lodging the complaints by the aggrieved borrower and ensure that it is specifically made available on its website. SPHM shall clearly display in all its offices / branches and on the website that in case the complaint does not receive response from the company within reasonable time or is dissatisfied with the response received, the complainant may approach Complaint Redressal Cell of National Housing Bank by lodging its complaints in Online mode at the link https://grids.nhbonline.org.in OR in offline mode by post, in prescribed format available at link http://www.nhb.org.in/GrievanceRedressal-System/LodgingComplaint-Against-HFCs-NHB%E2%80% 93 Physical-Mode.pdf, to: Complaint Redressal Cell, Department of Regulation and Supervision, National Housing Bank, 4 th Floor, Core 5A, India Habitat Centre, Lodhi Road, New Delhi – 110 003.
5.1 verify the details mentioned by him/her in the loan application by contacting him/her at his/her residence and/or on business telephone numbers and/or physically visiting his/her residence and/or business addresses either directly by SPHM or through agencies appointed for this purpose, if deemed necessary by SPHM.
5.2 inform the customer to co-operate if SPHM needs to investigate a transaction on the customer’s account and with the police/other investigative agencies, if SPHM needs to involve them.
5.3 advise the customer that if the customer acts fraudulently, s/he will be responsible for all losses on his/her account and that if the customer acts without reasonable care and this causes losses, the customer may be responsible for the same.
5.4 Display about its products and services in any one or more of the following languages: Hindi, English or the appropriate local language.
5.5 not discriminate on grounds of sex, caste and religion in the matter of lending. Further, SPHM shall also not discriminate visually impaired or physically challenged applicants on the ground of disability in extending products, services, facilities, etc. However, this does not preclude SPHM from instituting or participating in schemes framed for different sections of the society
5.6 process requests for transfer of a loan account, either from the borrower or from a bank/financial institution, in the normal course.
5.7 To purlicize the Code, SPHM shall:
a) provide existing and new customers with a copy of the Code:
b) make this Code available on request either over the counter or by electronic communication or mail;
c) make available this Code at head office and branch offices and on its website; and
d) ensure that staff are trained to provide relevant information about the Code and to put the Code into practice
5.8 The Board of Directors of SPHM may provide for periodic review of the compliance of the Fair Practices Code and the functioning of the grievances redressal mechanism at various levels of management. A consolidated report of such reviews will be submitted to the Board of SPHM at regular intervals, as may be prescribed by it.