Sunita Finlease Limited (SFL) is a Non-Systemically Important Non-Deposit taking Non-Banking Financial Company, bearing Registration no. 03.00007., registered and regulated by the Master Direction - Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016, as amended from time to time and such other rules, regulations, directions, circulars, notifications and orders issued in this regard from time to time (“RBI Directions”).
This loan policy (“Policy”) specifies the terms and conditions under which personal loans are managed by SFL.
In pursuing its business, SFL will operate according to the highest ethical and compliance standards and constantly seek to follow best practices in the industry. Under no circumstances will contravention of laws and relevant regulations would be tolerated.
The objective of this Policy is to standardize the procedures for the lending activities of SFL.
Product and Purpose:
SFL offers personal loans to individuals for their financial needs including for marriage, medical treatment, education or any other general purpose, except for any speculative activities.
SFL may also provide loans to its borrowers in the form of a salary advance.
SFL may also provide credit to its borrowers, on a revolving basis.
Personal loans are offered by SFL to individuals satisfying the following conditions:
Between 18 and 60 years of age;
Salaried employee or freelancer associated with a partner organization;
Should be an Indian citizen;
Shouldn’t have a history of fraudulent practices including wilful loan defaults and should have good credit worthiness;
Should have a reasonable capacity of earning to allow repayment of EMIs;
Shouldn’t be overleveraged by any existing loans considering their earning potential.
Loans will be granted to individuals only after SFL is satisfied with the credit worthiness, integrity, local standing and repayment capacity of each borrower. As a general rule unsecured personal loan will not be granted to any person who does not have regular verifiable income.
KYC documents are collected and verified as per the KYC policy specified by SFL (https://www.sunitafinance.com/kyc-guidelines-a ).
For individuals availing personal loans, the charges below may be applicable:
Rate of Interest: A rate of interest may be charged on personal loans. Such a rate of interest is communicated upfront in the application flow as well as the KFS before the loan is approved. The rate of interest will be determined by taking into account the relevant factors such as cost of funds, operational cost, margin and risk premium, as further specified in the Interest Rate Policy. The rate of interest shall be specifically specified in the KFS shared with the borrower.
Transaction Fee: The transaction fee or any other upfront charges with a breakup (Processing Fee, Insurance (if any), Credit Review Fee or E-sign) are flat charged at the time of loan disbursal. It is clearly communicated to the borrower on the digital lending application through which the loan is extended and is also specified in the KFS which is shared with the borrower before the loan is accepted by the borrower.
Prepayment fee: No prepayment fee is charged on personal loans, if the borrower cancels the loan within the cooling-off period as may be communicated by SFL to the borrower.
Late Payment Fee: In case the re-payment of the loan amount is delayed beyond the repayment schedule specified to the borrower at the time of loan disbursement, a late payment fee may be charged on the overdue amount for the period of default at the sole discretion of SFL.
All charges are communicated to the borrower in the application flow and the KFS before loan approval.
Quantum of Finance:
SFL shall decide the quantum of finance based on the borrowers’ earnings and his/her repaying capacity.
SFL may require the prospective borrowers to provide such documents, as may be determined by the sanctioning authority.
Period of Loan:
The tenure for the loans granted by SFL, shall be specified in the KFS issued to the borrower.
The loan is to be repaid in Equated Monthly Instalments over the tenure of the loan or in a lump sum at the end of the tenure depending on specific terms offered to the borrower. The repayment installment commences from a date specified in the repayment schedule communicated to the borrower, prior to the acceptance of the Loan by the borrower. Repayment from borrowers is collected via a partner Payment Gateway.
Modes of repayment:
The loan may be repaid via one of the following modes:
Direct deduction from salary made after explicit authorization from the individual, where such deduction is made by the employer of the borrower;
eNACH/SI signed by the borrower during the loan application process; and
Payment Links are shared with the borrower, through which the borrower can repay.
In the event of default by the borrower, i.e. if the amount due is not paid by the due date as specified in the repayment schedule, SFL will send reminders to the borrower, from time to time, for payment of any outstanding on his loan account, by telephone, email, SMS messaging and in-app messaging and/or through third parties appointed for collection purpose. Any third party so appointed, shall adhere to the Recovery Practices Code mentioned below.
Collection and Recovery:
The recovery of overdue amounts from borrowers is done strictly in accordance with the Collection and Recovery Policy https://www.sunitafinance.com/collection ). SFL may appoint any third party, as its collection and recovery agent, who might assist SFL in the follow-ups and recovery of the loan amount from the borrowers. SFL shall ensure that such collection and recovery agents shall strictly follow the Collection and Recovery Policy, adopted by SFL.
Asset Classification and Income Recognition:
SFL will undertake asset classification and income recognition for all loans sanctioned by it, as per the norms prescribed by the Reserve Bank of India from time to time.
SFL may, with a view to augmenting its non-financial income, enter into arrangements with any entity for selling insurance, mutual fund or any other products, strictly within the norms prescribed by the regulators in the respective area and those stipulated by the Reserve Bank of India from time to time.
This Loan Policy will be revised, amended and updated from time to time, as may be required to ensure compliance with the applicable laws, or as may be required to adapt to the changing market demands and to incorporate and implement any changes in the credit strategy, with the approval of the Board of SFL.