The Fair Practice Code is being formulated following the directive issued by National Housing Bank (NHB)
The objectives of the code are the following :
- Promote good and fair practices by setting standards in customer dealing;
- Provide transparency in systems, procedures, policies, terms & conditions so that the customers can have a better understanding of what he/she can reasonably expect of the services;
- Encourage market forces through competition to achieve higher operating standards;
- Promote a fair and cordial relationship between the customer and GRUH; and
- Foster confidence in the housing finance system.
Guidelines and Policy
The following aspects form the broad guidelines and policies for the Fair Practice Code and are being implemented across all branches of GRUH.
The Code is applicable to all dealings, products, services and other offerings by GRUH with, or to its customers through any media, be it through personal interactions, written or oral communication or by e-mail or any other form of electronic communication.
The Code is applicable under normal operating environment and does not bind GRUH in the event of any force majeure.
The Code is based on ethical principles of integrity and transparency and all actions and dealings shall follow the spirit of the Code.
Our Commitment to Customers
- All products and services offered by GRUH shall abide by all relevant laws and regulations of the country in letter and spirit.
- GRUH treats its customers to be equal irrespective of any race, caste, gender, religion or disability.
- GRUH shall make available to its customers a copy of its Fair Practice Code on demand from its branches. GRUH has also displayed the fair Practice Code at its branches and has placed a copy on its website.
- GRUH shall treat the information provided by its customers strictly confidential and not share any information with any agency without their prior consent unless in the event wherein the information is required under law or in public interest. As and when required, the data is being provided to various agencies such as NHB/Central Registry/lending institutions/statutory authorities /approved credit information bureau / credit rating agencies / recovery agencies/verification agencies.
- GRUH shall inform its customers of their right to information regarding their account, the facilities available to them and also regarding their data being shared with other agencies.
- GRUH shall provide information about its other products and promotional offers to its borrowers on request.
- All rates and charges and amendments to policies introduced by GRUH are being made prospectively. However any amendment or modification required to be made under any statute / government guideline shall be made applicable as required under the specific statute / guideline
- GRUH generally does not employ third parties to render any services to customers other than GRA / DRA or panel advocates / valuers. Data is being shared with such agencies purely on a need to know basis and all such intermediaries are required to maintain confidentiality of data provided to them
- Personal data being shared by customers is not used by GRUH for any marketing purposes nor sold to any third party(ies)
Know Your Customer Guidelines
- GRUH shall assist the customers in meeting the requirements under the AML / KYC guidelines by providing forms and other material.
- GRUH shall ask the customers to submit the documents required to comply with the AML / KYC guidelines at the time of new account opening or as and when required to do so to meet regulatory guidelines. Customers shall have to provide the details failing which GRUH may take appropriate steps as it may feel necessary including cancellation of the transaction.
Our Products and Services
- GRUH has prepared detailed product brochures explaining the features and services being offered along with the list of documentary requirements to avail / apply for the same.
- GRUH also provides a brochure detailing the services being offered and charges being levied. The detailed brochure indicating the Most Important Terms and Conditions (MITC) is a part of the loan documentation and a signed copy is also made available to the customers. The MITC is also displayed at the branch offices and on GRUH’s website
- GRUH also displays its deposit and loan rates of interest, fees and charges and product features at its branches and on its website
- Details of special facilities such as nomination of deposits are mentioned on GRUH’s deposit application forms.
- The rate of interest on Loans is linked to the credit score which is calculated by the system based on various credit parameters. GRUH therefore can only provide an interest rate band. This system is internal to GRUH. Hence, no discretion is allowed in this rate of interest on loans. The customer has the right to accept or reject the sanction. The processing fees however shall not be refunded if the customer does not avail the sanctioned loan / is not able to fulfill the conditions of loan sanction.
Our Loan Disbursement Procedure
- GRUH provides to its customers, a list of documents required to process his/her loan application, along with the stage during which the said document would be required to be submitted.
- At the time of submission of the loan application form along with mandatory credit documents, the customers are provided with an acknowledgement for the receipt of the application mentioning the time frame within which the application shall be dealt with
- In case the loan is not sanctioned by GRUH, a written letter informing of the rejection of the loan with the reasons for rejection is being provided to the customer on request
- GRUH carries out internal checks as well as external verification of its customers and their business / income / assets and liabilities etc and customers are required to co operate in such data submission.
- GRUH processes the loan application and gives an “in principle” sanction to the customer within a period of 30 days after satisfactory submission by the customer of the requisite data / information /documents required for sanction of the loan. Further, disbursements of the loan are made subject to the fulfillment of all terms and conditions of the loan sanction.
- All the terms and conditions pertaining to the loan sanction are contained in the sanction letter which is provided to the customer on sanction of his/her loan.
- GRUH generally accepts external guarantors for its loans. The guarantee form which is collected from the guarantors explicitly mentions the rights available to GRUH and the liability of the guarantors towards GRUH on account of the guarantee being provided for the loan.
- GRUH provides a copy of the loan agreement to its customers.
- GRUH also provides to its customers the details of past transactions of the last two years on request on payment of fees on yearly basis.
- The documents pertaining to the property are released by GRUH within a period of 30 days of realization of all receipts from the customer and closure of the account provided no other charge or mortgage or lien exists on the said property of GRUH.
- If any change contrary to the contracted terms is introduced by GRUH, then customer shall have a right to prepay his loan within 60 days of such change, without any penalty.
Public Deposit Acceptance
- GRUH collects the KYC documents of all the depositors at the time of placing the deposit and of the nominee at the time of claim settlement. Hence at the time of settling the account GRUH is in a position to settle the account without any delay. However in case no nominee has been selected by the depositor, then in that case GRUH insists on a probate from the Court to establish the legality of succession and the payment is made to the probate holder.
- GRUH shall provide a provisional receipt at the time of acceptance of deposit indicating the rate of interest and the scheme and tenure under which the deposit has been accepted.
- GRUH allows back dated renewal of deposit. The terms of renewal of deposit including the rate of interest applicable are mentioned in the deposit application form.
- The Deposit application form shall contain all relevant guidelines regarding premature withdrawal, Loan against deposits, terms of acceptance of deposits, various deposit schemes including schemes for senior citizens, deposits from minors. Premature withdrawal however cannot be claimed as a matter of right by depositors. GRUH may, at its discretion, allow Premature withdrawal of deposits at the request of depositors as per norms of NHB.
- GRUH shall deduct the excess brokerage pertaining to the balance period of deposit from the deposit amount in the event of premature withdrawals
- Normally deposit accounts are settled on receipt of a properly discharged deposit receipt for repayment or a premature withdrawal request, within a maximum period of fifteen days.
- GRUH shall not deduct income tax at source from the payment of interest on deposits if requisite Form 15 H/ 15 G, as the case may be, duly completed in all respects, is submitted by the depositors to GRUH within the specified time.
Our Channel Associates
- GRUH has GRUH Referral Associates (GRA) for sourcing loan applications and Deposit Referral Associates (DRA) for mobilizing retail deposits.
- GRUH reimburses GRA / DRA for sourcing business. As per the terms and conditions of appointment, GRA / DRA shall provide services to the customers without charging any other fees.
- The role of GRAs is limited to sourcing of loan applications. Other loan processing is done by GRUH. The decision for acceptance / rejection of any loan application solely rests with GRUH.
- GRUH has laid down a Code of Conduct for its channel associates and also provided them an appointment letter.
- The GRA / DRA are required to abide by the code of conduct laid down and are trained on the Do’s and Don’ts for dealing with GRUH customers. The GRA / DRA policy also clearly mentions the steps which GRUH shall take in case of violation of the code of conduct.
Our Communication with Customers
- GRUH shall prepare leaflets, brochures, forms and all other literature in either English or Hindi
- Customers are informed of all financial information such as rates, charges, method of calculation etc clearly through brochures, posters etc prior to entering into any transaction.
- GRUH shall keep its customers informed of any change in interest rates / charges / maturity of deposits or loans etc through reminder letters or any other form of communication / display from time to time.
- GRUH shall ensure that all its advertisements and promotional material is clear and not misleading.
Our Recovery Mechanism
- GRUH generally shall accept payments by cheques/ demand drafts at its offices. Customers will however be informed of the collection centers and tie ups which GRUH has for collections of its payments through its offices. Customers are required to make arrangement for the payments without any reminder and as per the collection arrangements made by GRUH.
- GRUH shall be sending reminder letters to customers, making tele-calls and make personal visits at the residence / any other place of communication.
- GRUH shall observe the guidelines / norms issued by NHB for recovery of dues of the borrowers.
- Only an authorized person of GRUH shall make any visit for recovery and shall present his / her identity when asked. The visit shall ordinarily be made to the place of residence or employment or to any specific place where the customer could be located.
- The visit shall be made during daytime as far as possible and the customer’s privacy would be respected at all times.
- Attitude during the recovery visit would be of resolving the dispute, if any, and decency and decorum would be maintained at all times
- All recovery visit details would be documented for future reference.
- It shall be the responsibility of the customer to make payment of his installment/ pre-EMII every month to GRUH, as per the terms of the loan agreement, since it would be the essence of the contract. In the event of any delay/ default, GRUH shall levy an account handling charge every month.
Our Complaint Redressal
- GRUH has a Consumer Grievance Redressal Committee (CGRC). All necessary steps and procedures for recording, escalation and redressal are being followed.
- GRUH shall adequately display for the benefit of its customers the details of contact persons and offices along with contact details including the display on the website.
- GRUH shall give an acknowledgement for every written complaint received and shall endeavor to resolve customer complaints within a period of 21 days. Customers would however be informed of the escalation steps by putting up boards / posters at the branches.
- GRUH responds to each complaint vide written communication or in case of oral complaints, by maintaining a log of such complaints and the responses given to the customer.