Fair Practice Code
Introduction
Monk Capital Pvt Ltd (“Company”), a Non-Banking Financial Company registered with the Reserve Bank of India (RBI), is engaged in the business of fee-financing, personal loans, education loans, and other credit products.
This Fair Practices Code (“FPC” or “Code”) has been formulated in accordance with the RBI Master Directions on NBFCs, the RBI Guidelines on Digital Lending (2022), and other applicable circulars. It sets out minimum standards of practices when dealing with customers to ensure fairness, transparency, and responsible lending.
The Code has been duly approved by the Board of Directors and shall be applicable to all categories of products and services offered physically, digitally, or through Lending Service Providers (LSPs), Direct Selling Agents (DSAs), or co-lending partners.
To promote good and fair lending practices by setting minimum standards when dealing with customers.
To increase transparency so customers can make informed decisions.
To ensure compliance with applicable laws and RBI guidelines.
To foster a cordial and professional lender–borrower relationship.
We commit to:
Act fairly and reasonably with customers, guided by integrity and transparency.
Provide clear and adequate information about products, interest rates, charges, and repayment obligations.
Ensure loan terms are not discriminatory and are in compliance with regulatory requirements.
Handle customer grievances promptly through an effective redressal mechanism.
Display this Code on our website (www.monkcapital.in) and provide copies upon request.
Loan application forms shall include all necessary information, list of required documents, and allow meaningful comparison with other lenders.
For digital loans, a Key Fact Statement (KFS) will be provided before sanction, containing the Annual Percentage Rate (APR), recovery mechanism, grievance redressal details, and all applicable charges.
Completed applications shall be processed within 30 days of receiving all information.
Rejections, if any, will be communicated to applicants with reasons.
Loan Appraisal & Terms/Conditions
Sanction letters will communicate the loan amount, annualized interest rate, penal charges, and EMI schedule in English or vernacular language.
Borrowers shall receive a copy of the loan agreement, enclosures, and repayment schedule within 3 business days of disbursement.
Penal charges (not penal interest) shall be levied strictly as per RBI’s 2023 circular on penal charges and disclosed upfront in the sanction letter/KFS.
Disbursements shall be made directly into the borrower’s bank account (no pass-through accounts), unless specifically mandated.
Any changes in interest rates, EMI schedule, or charges will be intimated in writing/electronically, prospectively.
Security, if any, will be released within 30 days of full repayment, in line with RBI’s mandate on release of movable/immovable property documents. Delays beyond 30 days will attract compensation as per RBI rules.
Collection of Dues
Borrowers will be explained the repayment process clearly.
Authorized recovery agents/staff will:
Identify themselves with valid ID and authority letter.
Contact customers only between 08:00 am – 07:00 pm (unless special circumstances apply).
Maintain decency, avoid harassment, and respect customer privacy.
Not use coercive or abusive methods, or contact relatives, friends, or employers.
All collections will be deposited directly into the Company’s bank account.
General Provisions
No interference in the borrower’s affairs except as per loan agreement or regulatory mandate.
Loan transfer requests will be processed within 21 days transparently.
Customer confidentiality will be maintained except where disclosure is required by law, regulators, or authorized third parties under confidentiality obligations.
For loans sourced via digital platforms, Monk Capital shall:
Disclose names of LSPs/DLAs on the website.
Ensure sanction letters are issued on the Company’s letterhead.
Provide borrowers with a cooling-off/look-up period in line with RBI norms.
Maintain oversight over outsourced platforms.
Regulation of Interest Rates
The Board of Directors has adopted an Interest Rate Policy, considering cost of funds, risk premium, and market conditions.
The annualized rate and rationale for risk gradations shall be disclosed to borrowers in sanction letters, KFS, and on the website.
No foreclosure charges/prepayment penalties shall be levied on floating-rate loans to individuals (except for business loans), as per RBI norms.
Grievance Redressal Mechanism
Monk Capital has a structured grievance redressal framework, with multiple escalation levels.
Borrowers may contact our Grievance Redressal Officer (GRO):
Name: Mr. K. Sai Ram Reddy
Phone: 63091 - 48333
Email: gro[at]monkcapital[dot]in
Address: The Platina, B-406, Sy No. 132, 134, H. No. 4-50/1, Gachibowli, K.V. Rangareddy, Seri Lingampally, Telangana – 500032If a complaint is not resolved within 30 days, customers may approach the RBI Ombudsman through the CMS Portal.
Training & Review
All customer-facing staff and DSAs will be trained on this Code.
The Board shall periodically review compliance with the FPC and the functioning of grievance redressal mechanisms.
Reports on complaints and resolutions will be presented to the Audit Committee/Board
