MUTHOOTTU MINI FINANCIERS PVT LTD (MMFPL)

 

Fair Practices Code

Muthoottu Mini Financiers Pvt Ltd gives the following types of loans. The required documents and associated conditions for sanction of such loans are given below

 

A.   Loan against pledge of gold jewellery

a.    Application form duly filled & signed by the applicant. If the applicant so desires, a certified copy of the application form in the local language will be given

b.    Required quantity of jewellery of Minimum 22 carat (or of equivalent % purity)

c.    No loans will be granted against primary gold/ bullion/ gold coins of any purity

d.    Proof of identity, namely, photo copy of election identity card, passport, driving license or PAN card

e.    In case the residential address of the borrower is different from that given in the accepted identity proof, separate residence proof by way of copy of ration card, bank pass book, electricity/ telephone bill or tax receipt to be submitted

f.     Unless otherwise specified, all loans are sanctioned for a period of 12 months

g.    Interest at the specified rates should be paid as per terms sanctioned

h.    No prepayment penalty will be levied in case of early redemption subject to a minimum of seven days interest will be recovered in case of pre-closure

i.    Interest at Monthly rests

j.      The current interest rate on different gold loan schemes of the company is given below

Scheme

Period/ interest rate

0-90 days

91-180 days

181-360 days

MMRGL

18%

20%

22%

MMEGL

20%

22%

24%

MMIGL

22%

24%

26%

MMSGL

24%

27%

 

 

B.   Loan against debentures issued by the company

a.    Only the debenture holders can apply for the loan

j.      Application form duly filled & signed by the applicant. If the applicant so desires, a certified copy of the application form in the local language will be given

b.    Discharged debenture certificate

c.    The loan will be coterminous with the maturity of the pledged debentures

d.    No prepayment penalty will be levied in case of early redemption subject to a minimum of seven days interest will be recovered in case of pre-closure

e.    The loan will carry 3% interest above the contracted interest payable on debentures

LOAN APPRAISAL – TERMS & CONDITIONS

1.    MMFPL will issue a pawn ticket/ receipt to the borrower containing details about the loan sanctioned, jewellery pledged period and applicable interest rate

2.    The terms & conditions of the loan shall be accepted by the borrower before disbursement of the loan

3.    Changes in terms and conditions of the loan

a.    MMFPL shall give notice to the borrower of any changes in terms and conditions before these are effected

b.    All changes in interest rates, service & other charges shall only be prospective in nature

4.    Every borrower is entitled to receive back the securities offered for the loan availed. However, where the borrower has any other liability with the company, the company reserves the right to release the securities. A lien of the above order will be exercised only after giving due notice to the borrower

 

PRINCIPLE ADOPTED BY THE COMPANY IN FIXING INTEREST RATE ON GOLD LOANS

The interest rates on gold loans will be fixed by the company on the basis of the following internal valuations

1.    The company lends varying amounts per gram of the gold (LTV) depending upon the market value and the purity of the gold. As per the risk assessment of the company a higher LTV is a riskier than a lower LTV. Accordingly, lower LTV attracts lower rate of interest and higher LTV attracts higher interest rate. Further, in case of schemes where the interest rate varies for different periods, the borrower can remit the interest alone and renew the loan to avail the lower interest rate provision

2.    Cost of funds: Interest on loans will be levied as a mark up on the current cost of funds. The current cost of funds for this purpose means the incremental cost of borrowings of the company and its operating cost

3.    The interest rates charged by the Company shall always be expressed in simple rates with yearly rests and unless specified only simply interest will be charged on the loans granted

 

APPROVED AUCTION PROCEDURE FOR PLEDGED JEWELLEY IN CASE OF DEFAULT

1.    Unless otherwise specified, all loans are sanctioned for a period of 12 months

2.    The borrowers are required to repay the loans on or before the maturity date without notice

3.    In case the loan is not repaid the company will issue a notice to the borrower calling upon to repay the loan within 14 days from the date of such notice

4.    In case the loan remains outstanding even after the notice period, the company reserves the right to take over the pledged ornaments .

5.    The Company reserves its right to auction the taken over gold loans.

6. The date, time & venue of the auction of the taken over jewellery will be displayed in the branch concerned and a notice in this regard will also be published in two local news paers.

7.. The company, its promoters or its associate concerns will not participate in the auction as a buyer of the auctioned jewellery

 

 

 

 

 

GENERAL TERMS

1.    Muthoottu Mini Financiers Pvt Ltd refrains from interference in the affairs of the borrower except for the purpose of loan provided in the terms and conditions of the agreement unless a new information not earlier disclosed by the borrower has come to the notice of the company

2.    All gold loans will be sanctioned on the basis of a preliminary assaying of the purity of the pledged ornaments. These will be verified later on by qualified/ experienced gold assayers appointed by the company and in case the purity of the pledged ornaments are below the minimum accepted level of purity approved by the company, the company reserves the right to recall such loans without delay or notice

3.    Since gold loans are sanctioned instantaneously, no acknowledgment of loan application will be given

4.    The company does not resort to use muscle power or unlawfull coercion methods for recovery of loans granted by the company

5.    All loans are sanctioned at the sole discretion of the company

6.    The pledged ornaments will be stored in pucca strong rooms and will be duly insured against theft, dacoity, etc

 

Grievance Redressal Mechanism

 

The customer grievance with regard to the loans sanctioned by the company shall be dealt with as follows

1. All customer grievances will be taken up first with the Branch Manager for redressal

2. In case the grievance is not satisfactorily redressed at the branch level, the same shall be taken up with the concerned Regional Manager

3. Grievances that cannot be solved at the RM level may be taken up with the Zonal Manager (state level)

4. The contact numbers of the Regional Manager & Zonal Manager will be displayed at the branch

5. Any grievance that cannot be solved by Zonal Manager can be taken up with Chief Operating Officer at Corporate Office Kochi