Principles and Code of Conduct
AMIL’s work will be conducted within a framework of 11 client protection principles. These principles are adapted and revised as per the most up to date RBI notifications to NBFCs and NBFC-MFIs for implementation of Fair Practices Codes.
1. Inclusive and Non-Discriminatory: Our services and products are available to all; we will not discriminate based on community, religious, caste or gender reasons, or for reasons of poverty or disability.
2. Ethical Staff Behaviour: Our staff will treat you in a fair, honest and respectful manner at all times. Our collection officers will not indulge in the following:
a) any behaviour that in any manner would suggest any kind of threat or violence.,
b) contact clients at odd hours, as per the RBI guidelines for loan recovery agents.
c) will not visit clients at inappropriate occasions such as bereavement, sickness, etc., to collect dues.
The company would be accountable for preventing inappropriate staff behaviour.
3. Appropriate Product Design and Delivery: We will constantly work to ensure that our products and delivery mechanisms are flexible in order to meet the diverse needs of our clients. We will actively seek feedback from you regarding your product and service preferences. We will extend product and services as bundled product except insurance.
4. Disclosure: We will communicate all the terms and conditions for all products/services offered to clients in the official regional language or a language understood by them and shall cover aspects such as, loan terms & conditions, pricing, charges etc. We shall also hand over a copy of the sanction letter, repayment schedule, loan card etc and other loan documents as and when a request is received.
5. Avoidance of Over-Indebtedness: We will thoroughly assess your household income(s) and expenditure(s) to ensure that your loan size matches your capacity to make repayments. We will not lend to clients who have outstanding loans with more than one other lender. We will use the Credit Bureau information while assessing number of loans & indebtedness levels of each client.
6. Transparent Pricing: We will ensure that you are fully aware of all of our product terms and conditions and prices. The pricing of our products will be simple to understand and fair. There will be no hidden costs. Our relationship is based on a detailed agreement which will depict the key terms and conditions of loan and repayment. There shall be only three components in the pricing of the loan: namely the interest charge, the processing charge and Insurance premium. All interest and fees payable as an all-inclusive APR and equivalent monthly rate will be indicated in the sanction letter/loan documentation. No penalty will be charged on delayed payments. Complete information on pricing will be displayed at all our offices.
7. Appropriate Collection Practices: You are expected to pay your loan on time but if you cannot, we will work with you to overcome problems that you are facing. We will never use abusive language, physical force, humiliate you, or violate your right to privacy. All recoveries will take place at the place designated in the loan contract. We will provide a valid receipt for each and every payment received from the borrower.
8. Flexibility: You can choose the term of repayment (Weekly, Fortnightly or Monthly). We do not charge extra for this flexibility or for pre-payment of any loan.
9. Privacy of Information: We will not share your personal details or information with any person or organization without your consent, or unless required to by the law.
10. Freedom of Choice: We respect that you are the best person to make decisions for yourself and your family. We shall endeavour to raise clients’ awareness of the options, choices and responsibilities vis-à-vis financial products and services available and also inform clients the organization’s policies and procedures to help them understand their rights as borrowers at regular intervals.
11. Recruitment: We shall adhere to the following while recruiting employees from other MFIs.
a) Shall not recruit an employee of other MFI without the relieving letter from the previous MFI employer except where the previous employer (MFI) fails to respond to the reference check request within 30 days.
b) Shall honour a one month notice period from an outgoing employee.
c) Shall provide within 2 weeks the reply to the reference check correspondence for another MFI.
d) Shall not assign a new employee recruited from another MFI, to the same area he/she was serving at the previous employer, for a period 1 year. This restriction applies to positions up to the Branch Manager level.
12. Complaints and Grievances: Customers have a right to make complaints. We will always listen to customer comments and complaints and respond to them quickly and fairly by establishing a dedicated feedback and grievance redressal mechanisms to correct any error and handle/receive complaints speedily and efficiently. We shall also ensure that clients are made aware of the existence and purpose of these mechanisms and how to access them.
A client may directly air their grievances by contacting the designated Nodal Grievance Officer, Head of Finance Department, AGORA Microfinance India Ltd at the Company Head Office or via telephone +9186550 10063/022-25271552.
Additionally, AMIL also follows the detailed MFIN COC for microfinance industry and the RBI fair practice code. These documents are available in hard copy with each branch for ready reference of our staff and clients.