Loan Policy

Objective

The Loan Policy of Rajput Leasing and Finance Ltd. defines the guiding principles for sanctioning, disbursing, managing, and recovering loans in a fair, transparent, and responsible manner. The policy aims to:

Ensure compliance with RBI and regulatory norms.

Promote responsible lending and risk mitigation.

Protect customer interest while maintaining asset quality.

Provide clear, consistent, and fair loan processing procedures.

Scope

This policy covers all types of loan products offered by the Company, including:

Gold Loans

Personal Loans

Business Loans

Secured and Unsecured Loans

Eligibility Criteria

Eligibility for a loan is based on:

Age (18 years and above)

KYC compliance (PAN, Aadhaar, etc.)

Income source and repayment capacity

Credit history and profile

Type of collateral (for secured loans)

Loan Appraisal & Sanction

Loan applications will be evaluated objectively based on:

Documentation submitted

Verification of income, assets, and liabilities

Risk grading and creditworthiness

All sanctioned loans will be documented through a Loan Sanction Letter and a Loan Agreement, detailing:

Loan amount

Interest rate and type (fixed/floating)

Repayment tenure

Security/collateral (if applicable)

Fees and charges

Disbursement Process

Loans are disbursed only after:

Completion of documentation

Verification and approval by authorized officers

Execution of loan agreement

Disbursement may be done in cash, cheque, or bank transfer, depending on the product and applicable laws.

Interest Rates & Charges

Interest rates are determined as per the Interest Rate Policy of the Company.

All fees, including processing fees, prepayment charges, foreclosure charges, and penalties, will be disclosed upfront.

Repayment Terms

Repayment schedules are agreed upon and mentioned in the loan agreement.

EMI options, bullet payments, or flexible repayment plans may be offered based on loan type.

Prepayment and foreclosure are allowed as per product-specific terms.

Collateral & Security

For secured loans (e.g., gold loans), appropriate security will be taken.

The valuation of gold or any other collateral will be done by authorized personnel.

The pledged asset remains the property of the borrower until auction, in case of default.

Recovery & Delinquency Management

Timely reminders are sent for upcoming payments.

In case of overdue accounts:

Recovery will be done ethically and legally.

Borrowers will be given adequate opportunity before initiating legal action or auction of collateral.

RBI’s fair recovery guidelines will be followed strictly.

Auction of Secured Assets

In case of default on secured loans (e.g., gold loans), the Company may initiate an auction process as per its Auction Policy.

Adequate notice will be given before the auction.

Any surplus amount from the auction will be refunded to the borrower.

Documentation

The Company maintains proper records of:

KYC documents

Loan application

Approval notes

Agreement and repayment receipts

Collateral details and auction records (if applicable)

Grievance Redressal

A Grievance Redressal Mechanism is in place for handling complaints.

Customer rights and contact details of grievance officers are displayed at all branches and on the website.

Policy Review

This Loan Policy shall be:

Reviewed annually by the Board of Directors.

Updated to reflect changes in RBI regulations or internal risk management strategies.

Regulatory Compliance

The policy adheres to:

RBI Master Directions for NBFCs

Fair Practices Code

KYC and AML Guidelines

Other applicable legal and statutory requirements