Fair Practices Code

Last reviewed and approved by the Board of Directors on 1 August 2026. This document applies to all customers of Nawkar Finance Limited and is available in Hindi, Marathi, Gujarati and Tamil at every branch on request.

1. Purpose and scope

This Fair Practices Code sets out the standards Nawkar Finance Limited follows in dealing with borrowers, from the first enquiry to the return of security after the final instalment. It applies to every product, every branch, every digital channel and every person acting on our behalf, including recovery agents and direct selling agents.

Where anything in this Code conflicts with a regulatory requirement, the regulatory requirement prevails. Where this Code offers the customer more than the regulation requires, this Code prevails.

2. Applications and their processing

• All loan application forms disclose the fees and charges payable, the documents required, and the time normally taken to process the application.
• Every application received is acknowledged in writing or by SMS with a reference number, and we state the timeline within which a decision will be communicated.
• Applications are communicated in a language the borrower understands. Vernacular forms and Key Fact Statements are available at every branch.
• If an application is rejected, we convey the reason in writing. We do not decline without explanation.

3. Appraisal and terms of the loan

The sanction is conveyed in writing, in the borrower's language, and states the sanctioned amount, the annualised rate of interest, the method of application of interest, the tenure, the EMI, all fees and charges, and the penal charges applicable on late payment — the last of these in bold.

A Key Fact Statement disclosing the Annual Percentage Rate accompanies every sanction. The borrower's written acceptance of these terms is retained on record.

A copy of the loan agreement, together with a copy of every enclosure quoted in it, is furnished to the borrower at the time of sanction or disbursement, free of charge.

4. Changes to terms and conditions

Any change in disbursement schedule, interest rate, charges or other terms is notified to the borrower in writing before it takes effect. Changes to interest rates and charges are applied prospectively only.

A decision to recall or accelerate payment under the agreement is taken only in accordance with the terms already agreed, and the borrower is given written notice.

On repayment in full, all securities are released within 30 days, subject to any legitimate right of lien for another claim — and if such a lien is exercised, we give the borrower notice with full particulars of the remaining claim and the conditions under which the security will be released.

5. Recovery practices

We do not resort to undue harassment. Our field staff are trained to deal with customers appropriately, and the following are absolute rules:

• Contact is made only between 8:00 AM and 7:00 PM.
• We do not call the borrower's employer, neighbours or relatives to apply social pressure, except a co-borrower or guarantor who is a party to the loan.
• We do not use abusive language, threats, or anonymous calls, and we do not visit at unreasonable hours or on days of bereavement or family calamity.
• Recovery agents acting for us are bound by this Code in writing, and their details are shared with the borrower before any field visit.
• Repossession of security, where the agreement provides for it, follows a legally enforceable clause and a written notice period, and the sale proceeds are accounted for to the borrower in writing.

Any breach of these rules by an employee or agent is a disciplinary matter and should be reported immediately to our Grievance Redressal Officer.

6. Interest rates

Interest rates are set by the Board-approved Interest Rate Model, which weighs our cost of funds, operating cost, credit risk premium and tenure. The rate and the approach to gradation of risk are communicated in the application form and the sanction letter, and are published on the Interest Rate Policy page of this website.

Rates are annualised so that the borrower is aware of the exact rate charged. We do not quote monthly rates without also stating the annualised equivalent.

7. Confidentiality

Information relating to a borrower is treated as confidential and is not disclosed to any third party except with the borrower's consent, where disclosure is required by law or a regulator, where it is a duty to the public to disclose, or where our own interests require it under a legally defensible ground.

Credit information is shared with credit information companies as required by the Credit Information Companies (Regulation) Act, 2005.

8. General

• We do not interfere in the affairs of a borrower except as provided in the loan agreement, unless information not previously disclosed comes to our notice.
• In the event of a request to transfer a loan account, our consent or objection is conveyed within 21 days of the request.
• We do not discriminate on the grounds of caste, religion, gender, disability or language. Loans to persons with disabilities are extended on the same terms as to any other applicant.

9. Grievance redressal

Complaints are handled under our published escalation process. The Grievance Redressal Officer is Ms. Ananya Rao, reachable at grievance@nawkar.in or +91 90000 00000. If a complaint is not resolved within 30 days, the customer may approach the RBI Ombudsman. Full details, including the Ombudsman's address, are on the Grievance Redressal page.

---

Questions about this document? Write to info@nawkar.in or call +91 90000 00000.