With a view to regulating the credit system and making practices followed by Non Banking Finance Companies transparent and customer-friendly, Reserve Bank of India, in exercise of the powers conferred under Section 45L of the RBI Act, 1934 (Act 2 of 1934), have prescribed broad guidelines on fair practices that are to be framed by the NBFCs with the approval of the Board of Directors and implemented across the network.

In accordance with the directives of Reserve Bank of India, the Company has, with the approval of its Board, framed the following fair practices code to be implemented after getting certificate of registration as a Non Banking Finance Company from Reserve Bank of India.


In pursuance to the Notification issued by the Reserve Bank of India vide Circular No. RBI/2006-07/138 DNBS (PD) CC No. 80/ 03.10.042/ 2005-06 dated the 28th September 2006, Hedge Finance Limited (referred to as the “Company”) has formulated this Fair Practices Code to lay down the following procedures and practices in dealing with the business transactions. This Code shall come into effect immediately upon getting the certificate of registration as an NBFC.

(i) Applications for loans and their processing

With a view to enabling the customers to take informed decisions, the application form for loan would contain all the required information for meaningful comparison of the terms and conditions offered by other NBFCs, which may affect his/her interests. The list of documents to be submitted with the application form would be specified and the applications submitted along with the prescribed documents would be duly processed.

All the applications for loans received by the Company would be acknowledged by means of a receipt, which will invariably carry the time frame within which the loan application would be disposed of.

(ii) Loan appraisal and terms and conditions

The Company shall convey in writing to the borrowers by means of sanction letter or otherwise the amount of loan sanctioned along with the terms and conditions including annualized rate of interest and the method of application thereof. The Company shall keep the acceptance of these terms and conditions by the borrowers on its record. Cases of rejection would also be notified to the prospective borrower (s) promptly.

(iii) Disbursement of loans including changes in terms and conditions

The Company shall 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 changes in interest rates and charges are effected only prospectively. A suitable clause to this effect shall be incorporated in the loan agreements.

Decision to recall and/or accelerate payment or performance under the agreement shall be in consonance with the loan agreement.

The Company shall release all securities on repayment of dues or on realization of the outstanding amount of loan, subject to any legitimate right or lien for any other claim the Company may have against the borrower. If such right of set off is 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.

(iv) General

The Company shall refrain from interference in the affairs of the borrower 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 Company.)

In case of receipt of request from the borrower for transfer of borrowal account, the consent or otherwise i.e. the Company’s objection, if any, shall be conveyed within 21 days from the date of receipt of the request. Such transfer shall be as per transparent contractual terms in consonance with law.

In the matter of recovery of loans, consistent with its policy over the years, the company shall not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans, etc.

The company will maintain appropriate Grievances redressal mechanism in the organization to resolve any dispute arising out of loans and advances. This mechanism would ensure that disputes arising out of the decisions of the sanctioning authorities are heard and disposed of at the next higher level. The Chief Executive Officer of the company would conduct periodic review of the compliance of the Fair Practices Code and the functioning of the Grievances Redressal Mechanism. A consolidated report of such reviews would be submitted to the Board at quarterly intervals.

The company has taken approval of the Board Of directors for appointment of Grievance Redressal officer and for amending Fair Practice Code of the Company.

The company has appointed Mr.Krishnachandran.S.V, AVP Operations,  Hedge finance Ltd, Hedge House, Mamangalam, Kochi 682025, as Grievance Redressal Officer.

The company shall display a notice board in HO and all of its branches as given below:

GRIEVANCE REDRESSAL OFFICER Mr. Krishnachandran.S.V (AVP Operations) Hedge Finance Ltd Hedge House Mamangalam Kochi 682025 Mob No: 9349412345 Land No: 0484 3051938 Email: krishnachandran.sv@hedgefinance.com If the complaint/dispute is not redressed within one month, the customer may appeal to Mr.Anil K Sharma General Manager Dept of Non Banking Financial Services Reserve Bank of India Bakery Junction Trivandrum-33.