Grama Vidiyal Micro Finance Private limited (GVMF(P)L) aims to adopts Fair Practices in any interactions with its stake holders.

Member Admission

The authorized staff of Grama Vidiyal shall give Compulsory Group Training to every potential member who has expressed her willingness to be a part of the program.

In this training the member shall be made aware of the history of the institution, products, services, delivery mechanism and all other details of the program.

The member shall be admitted into the program after verifying her credentials through a Group Recognition Test.
The ‘Know Your Customer’ (KYC) documents like Ration card copy or Voter’s ID copy along with other documents like housing index, name, age, education, asset details, expense details and details of the family shall be collected. 

Loan appraisal

Loan appraisal is done based on the following aspects of the borrower

 Disbursement of loans

Authorized staff of GVMF(P)L shall verify the Loan application along with all securities and approvals, which is applicable as per the applicable policy of the company.

All the documents shall be maintained under the safe custody in the respective premises by the authorized persons. During loan disbursement, a loan pass book containing the terms, conditions along with the interest and other information shall be handed over to the borrower.

Changes in terms and conditions

Post disbursement, GVMF(P)L may give due consideration to the genuine difficulties faced by the borrowers.

The GVMF(P)L shall give prior notice to the borrower of any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges etc. It shall ensure that changes in interest rates and charges are effected only prospectively.

Before taking a decision to recall / accelerate payment or performance under the agreement or seeking additional securities, GVMF(P)L shall give notice to borrowers in consonance with the loan agreement.

GVMF(P)L shall release all securities on repayment of all dues or on realization of the outstanding amount of loan subject to any legitimate right or lien for any other claim it may have against borrower.

If such right of set off is to be exercised, the borrower shall be given notice about the same with full particulars about the remaining claims and the conditions under which GVMF(P)L is entitled to retain the securities till the relevant claim is settled /paid.

General

GVMF(P)L shall refrain from interference in the affairs of the borrower except for the purposes provided in the terms and conditions of sanction of the loan, unless new information, not earlier disclosed by the borrower, has come to the notice of GVMF(P)L.

In case of receipt of request for transfer of borrowing account, either from the borrower or from a lender which proposes to take over the account, the consent or otherwise i.e. objection of the GVMF(P)L shall be conveyed within 21 days from the date of receipt of request. Such transfer shall be as per transparent contractual terms in consonance with law.

GVMF(P)L shall have the right to collect the outstanding loans or exercise any legitimate right over the borrower in normal course of business. However the company shall not resort to harassment.

The Board of Directors of GVMF(P)L shall lay down the appropriate grievance addressing mechanism within the organization to hear and resolve disputes arising in this regard at the next higher level.

The Board of Directors shall also provide for periodical review of the compliance of the Fair Practices Code and the functioning of the grievances addressing mechanism at various levels of management. A consolidated report of such reviews may be submitted to the Board once every year.