NEDFi Fair Practice Code.
NEDFi Fair Practice Code, sets minimum standards of practices to be followed while dealing with individual customers/companies/organizations/societies etc. It provides protection and explains how NEDFi is expected to deal with customers for their day to day operation.
I. NEDFi LOAN PRODUCTS:.
1) Rupee Term Loan (RTL) – to provide long term financial assistance for setting up of new industrial and infrastructure projects as well as for expansion, diversification and modernization of existing industrial enterprises. For projects with loan component of Rs. 25 lacs or above.
Ø A standard loan application form is available containing a) Terms & Conditions b) Interest rate c) documents to be submitted.
Ø But the Detailed Project report itself be considered as the loan application under RTL scheme along with a covering letter signed by the applicant.
Ø Details of the RTL scheme are also available in the brochures.
Ø The brochures is made available to all the prospective and interested borrowers.
Ø The standard application form/brochure are available at our website www.nedfi.com.[For more information click here] [DOCUMENTS TO BE SUBMITTED WITH PROJECT REPORT]
2) Equipment Finance (EF): to provide financial assistance for acquiring specific plant and machinery/equipment for existing industrial concerns.
Ø A standard loan application form is available containing a) Terms & Conditions b) Interest rate c) documents to be submitted.
Ø But the Detailed Project report itself be considered as the loan application under EF scheme along with a covering letter signed by the applicant.
Ø Details of the EF scheme are also available in the brochures for EF scheme.
Ø The standard application form /brochures is made available to all the prospective and interested borrowers
Ø The brochure is also available at our website www.nedfi.com.
3) Working Capital Term Loan (WCTL): To provide assistance to units currently facing problems due to lack of working capital support from banks but which can be made viable with infusion of fresh funds by way of one time core working capital. Only those units which have been provided financial assistance by the corporation under project finance scheme.
Ø The Detailed Project report itself be considered as the loan application under WCTL scheme along with a covering letter signed by the applicant.
Ø Details of the WCTL scheme containing a) Terms & Conditions b) Interest rate c) documents to be submitted are contained in the brochures for WCTL scheme.
Ø The brochures is made available to all the prospective and interested borrowers
Ø The brochure is also available at our website www.nedfi.com
4) North East Entrepreneurs Development Scheme (NEEDS): To provide assistance to the first generation entrepreneurs. The maximum project cost under NEEDS is upto Rs.25/- lacs.
Ø But the Detailed Project report itself be considered as the loan application under NEEDS scheme along with a covering letter signed by the applicant.
Ø Details of the NEEDS scheme containing a) Terms & Conditions b) Interest rate c) documents to be submitted are contained in the brochures for NEEDS scheme.
Ø The brochures is made available to all the prospective and interested borrowers
Ø The brochure is also available at our website www.nedfi.com
Under NEEDS for loans upto Rs.10 lacs, two loan application forms are available:
§ upto Rs. 5/- lacs
§ upto Rs.10/- lacs
For loans lower than Rs.10/- lacs, the detailed project report is the loan application.
5) Scheme for North East Handloom and Handicraft (SNEHH): is designed to help the manufacturers/designers/exporters of handloom and handicrafts products. The maximum project cost should not exceeds Rs.25/- lacs.
Ø The Project report itself is considered as the loan application under SNEHH scheme.
Ø Details of the SNEHH scheme containing a) Terms & Conditions b) Interest rate c) documents to be submitted are contained in the brochures for SNEHH scheme.
Ø The brochures is made available to all the prospective and interested borrowers
Ø The brochure is also available at our website www.nedfi.com [for more information click here]
6) Jute Enterprises Development Scheme (JEDS): is designed to encourage producers of jute based handicraft, handloom & made-ups (jute bags/jute tea bags, shopping bags, ladies handbags etc. made out of various jute fabrics). The maximum project cost should not exceeds Rs.10/- lacs.
Ø The Project report itself is considered as the loan application under JEDS scheme.
Ø Details of the JEDS scheme containing a) Terms & Conditions b) Interest rate c) documents to be submitted are contained in the brochures for JEDS scheme.
Ø The brochures is made available to all the prospective and interested borrowers
Ø The brochure is also available at our website www.nedfi.com [for more information click here]
7) Women Enterprises Development Scheme: to provide financial assistance to women entrepreneurs for taking up business ventures. It also extends financial assistance for expansion, modernization and diversification of existing business.
The maximum project cost should not exceeds Rs.5/- lacs.
Ø The Project report itself is considered as the loan application under WEDS scheme.
Ø Details of the WEDS scheme containing a) Terms & Conditions b) Interest rate c) documents to be submitted are contained in the brochures for WEDS scheme.
Ø The brochures is made available to all the prospective and interested borrowers
Ø The brochure is also available at our website www.nedfi.com [for more information click here]
8) Micro Finance:
Ø Application format is available containing therein the a) terms and conditions, b) rate of interest c) documents to be submitted are contained in the Micro Finance application.
II. An acknowledgement letter is issued at the time of inward of the proposal.
III.LOAN APPRAISAL AND TERMS /CONDITION: The proposal for loan is received from the borrower(s) through the Reception Section in the form of Loan Application /project report.
Ø The Loan application/Project report is examined and after additional information, if necessary, is obtained for borrower(s), an Issue Paper is prepared and placed before the Project Screening Committee (PSC).
Ø The PSC examines the proposal and thereafter decides whether to take up the proposal for detailed appraisal or reject the proposal & allots the case.
Ø The decision of the PSC is intimated to the dealing officer. If the PSC rejects a proposal, the dealing officer intimates the same to the concerned applicant.
Ø If the PSC decides to take up the proposal for detailed appraisal, pending information if any is asked from the borrower(s) and detailed Appraisal Note (DAN) is prepared after site visit/ discussion with the entrepreneurs within 30 days from the date of receipt of complete information on the project.
Ø The DAN is submitted to HOD/CMD for approval.
Ø The approved DAN is submitted to Secretarial Department for placing before Corporate Credit Committee / Directors’ Committee Meeting.
Ø After receipt of minutes of the Corporate Credit Committee / Directors’ Committee, Letter Of Intent is issued to the borrower(s). In case the proposal is rejected/ deferred for want of further information, the entrepreneur is advised accordingly. A copy of the LOI is forwarded to the Legal Department.
Ø Board Resolution / Acceptance Letter & Up-front Fee is received from the borrower and the same is intimated to the Legal Department vide an office note for legal documentation.
Ø We normally give information on
a) the interest rate which apply to the loan account
b) when we charge interest on the loan account
c) how we apply interest to the loan account & method of calculation of interest.
IV. Disbursement of loans including changes in terms and conditions:
Ø The disbursement request is received from the borrower along with C.A certificate and supporting documents. However, for NEED cases only C.A certificate is obtained.
Ø The request of the borrower is examined; site visit is undertaken if necessary.
Ø The compliance of terms and conditions and execution of legal documents is confirmed from the legal cell and clearance of up-front fee from Accounts Department, particularly in the first disbursement.
Ø Disbursement Note is prepared which is submitted to HOD/CMD for approval.
Ø After approval of disbursement note, the Disbursement Advice is prepared and submitted to F&A Department for preparation of cheque/draft.
Ø After receipt of cheque/draft from accounts department, a disbursement letter is prepared and the same is sent along with Cheque/Draft to the borrower/supplier(s).
Ø Any subsequent change in the terms and conditions, disbursement schedule, interest rate, service charge, prepayment charge etc, customers are intimated.
Ø Any change in interest rate the same is to effect prospectively.
Ø Decision to recall/ accelerate payment or performance under agreement is in consonance with the loan agreement.
Ø All securities papers are released on repayment of all dues of the outstanding amount of the loan.
V. General:
Ø NEDFi does not interfere in the affairs of the borrower except for the purposes provided in the terms and conditions of the loan agreement.
Ø Request from the borrower for transfer of borrowal account, the consent or objection of NEDFi if any to be conveyed within 21 days from the date of receipt of request and the matter is treated most transparently and as per contractual terms in consonance with law.
Ø NEDFi’s normally resorts to recovery proceedings by filing cases in the Debts recovery Tribunal in recovery cases above Rs.10 lacs. In smaller case, generally NEDFi files civil suits (money suits) or recovery proceedings through Bakijai proceedings.
Ø NEDFi does not resort to recover through any process of using undue harassment such as using muscle power or causing any undue harassment viz persistently bothering the borrowers at odd hours etc.
Ø In keeping in the same line of other commercial banks, NEDFI too has appointed recovery agents to recover the loans under term loan as well as under micro finance. They too do not resort to undue harassment or use muscle power.
Ø Even though the primary responsibility of making payment of dues remains with the borrower, NEDFi issues Demand Advises to ensure proper and timely communication of dues payable to the borrower, so as to set up a smooth recovery channel. Though not mandatory, Demand Advises are normally delivered to the borrower well in advance and indicate the updated position of dues.
Ø Since timely restructuring helps in preventing further deterioration of the account, a decision on the restructuring proposal is endeavoured to be taken preferably within 3 months from the date of receipt of proposal with complete information.
Ø In respect of restructuring proposals, the package is generally finalized in consultation with other lenders. Cases eligible for coverage under the Corporate Debt Restructuring (CDR) system are intended to be referred to the CDR Cell.
Ø In respect of assets taken over, wherever there is a possibility of restructuring or compromise settlement of dues in view of factors like seriousness envinced by the borrower to clear the dues, desirability of putting productive assets into proper use, etc., handing back the possession of the unit to the borrower would be considered under a trusteeship arrangement pending receipt of OTS payment / implementation of the package approved.
Ø We normally give information about our financial products and services in any one or more of the following languages:
a) English
b) Assamese
c) Bengali
Ø The information given out on our financial products and services are clear and not misleading.
Ø A copy of the Fair Practise Code will be made available at all our branches and also on our website.
VI. Grievance Redressal Mechanism: NEDFi’s has an in house grievance redressal committee comprising of the senior official of the Management to deal timely and appropriately with any grievance. If one wants to make a complaint, NEDFi assists :
a) How to do this?
b) Where a complaint should be made ?
c) How a complaint should be made ?
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