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We at Edelweiss Retail Finance Limited (“ERFL/Company”) are committed to serve to make our client’s experience a rewarding one at our Company. ERFL’s Grievance Redressal Mechanism articulates our objective to minimize instances that give rise to customer complaints and create a review mechanism to ensure consistently superior service behavior.

We ensure prompt redressal of all complaints and use it for effecting necessary changes to improve the services further. In case of any complaint/grievance, the borrowers / customers including the applicants with disability (ies) may contact through any of the following channels.

First Level: The borrowers can directly approach the Branch Manager and enter his/her complaint/grievance in the compliant register maintained at the branch. The concerned Branch Official shall guide the borrowers who wish to lodge a complaint. The borrower may also lodge complaints / grievances at the following email id : homeservice@edelweissfin.com

Second Level: The borrower / customer can also approach Grievance Redressal Officer at the following address :-
Ms. Sudipta Majumdar
Ground Floor, Tower 3, Wing B, Kohinoor City Mall, Kohinoor City, Kirol Road, Kurla(W), Mumbai – 400070
Tel No. 022-42722554; Email id: homeservice@edelweissfin.com

The Grievance Redressal Officer shall endeavour to provide the borrower / applicant with the resolution / response to the queries / complaints / grievances received from them within a period of minimum 15 days and maximum 30 days from the day of the receipt of the of the complaint / grievances.
Edelweiss Retail Finance Limited (the Company/ ERFL), in pursuance of the Directions issued by Reserve Bank of India for Non-Banking Financial Companies (NBFCs), has adopted the following Code for fair practices while dealing with customers. The Fair Practice Code (FPC) is intended to cover the following areas:
  • Applications for loans and their processing
  • Loan appraisal and terms/conditions
  • Disbursement of loans, including changes in terms and conditions
  • General provisions and
  • Grievance redressal mechanism

1. Applications for loans and their processing

  • (a) All relevant information pertaining to the loan/loan facility will be made available in the relevant loan application form(s) or through other modes (term sheet, teasers, etc.). The loan application form will also indicate the documents required to be submitted together with the duly completed application form.
  • (b) The client will have the option to receive all the correspondences, loan documents, recall notices etc relating to loan in vernacular language or a language understood by the Client. For this purpose the Client need to indicate his/her/its preference in the loan application form by selecting the appropriate option.
  • (c) Receipt of completed applications forms will be duly acknowledged within appropriate timeframe.
  • 2. Loan appraisal and terms/conditions

  • (a) Loan applications shall be assessed in accordance with the Company’s credit appraisal process and policies. The client shall be advised in the language selected by him/her/it in the loan application of the outcome of the credit appraisal (approval/rejection) within the period for appraising the loan application indicated in the acknowledgment to loan application.
  • (b) Upon approval of the loan, the Company shall convey the amount of loan sanctioned, annualized interest rate, default interest rate and other important terms and conditions to the Client by way of sanction letter or otherwise in the language selected by the Client in the application form for correspondence, etc. The penal interest, if any, to be charged by the Company for late repayment, etc shall be mentioned in bold in the loan agreement, sanction letter, etc. A acceptance of such terms and conditions shall be retained by the Company.
  • (c) The Company shall enter into an agreement indicating the amount of loan sanctioned, annualised rate of interest applicable, including method of application thereof, along with the terms and conditions with the client. A copy of the said agreement along with schedule(s) and annexure(s) to the agreement will be provided to the client in the language opted by the client.
  • 3. Disbursement of loans including changes in terms and conditions

  • (a) Any changes to the terms and conditions, including disbursement schedule, interest rates, service charges, prepayment charges, etc, shall be informed individually to the borrowers in case of account specific changes, and in case of others, the same shall be available at the registered office / corporate office of the Company or on website or be disseminated through print media if the Company so decide.
  • (b) Changes in the interest rates and charges shall be effected prospectively. A suitable condition to this effect will be inserted in the loan agreement.
  • (c) Decision to recall / accelerate payment or performance under the agreement shall be in accordance with the terms and conditions of the loan documents executed by the borrower with the Company.
  • (d) All securities pertaining to the loan would be released on receipt of full and final payment of the loans, subject to any legitimate or contractual right or lien or right to set-off which the Company or any other person may have under the loan documents against the borrowers. 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 the right to retain or setoff the securities/sale proceeds from the securities or right to transfer the securities or sale proceeds is exercised by the Company . In the event of full and final payment of the loans along with other dues, if any, “No outstanding dues” certificate shall be issued by the Company within 1 month from the date of receipt of request from the borrower / customer.
  • (e) All notices, correspondence in respect of the loan will be made in the language opted by the Client in the loan application form.
  • 4. Applicant with Disability (ies)

    The Company shall not discriminate in extending products and facilities including loan facilities to the physically / visually challenged applicants on the grounds of disability. They shall be treated at par with the other applicants and their application shall be dealt on merit as per the credit process and policy of the Company. All possible assistance will be provided to the applicants with the disability (ies) to enable them to understand, select and avail appropriate product or loan facility.

    5. General provisions

  • (a) The Company shall refrain from interference in the affairs of the borrower, except for the purposes and as provided in the terms and conditions of the loan documents or unless new information, not earlier disclosed by the borrower, has come to the notice of the Company.
  • (b) In case of receipt of request from the borrower for transfer of borrowal account, the consent or otherwise, i.e. objection of the Company, if any, shall be conveyed within 21 days from the date of receipt of request.
  • (c) In the matter of recovery of loans, the Company shall not resort to undue harassment viz persistently bothering the borrower at odd hours, use of muscle power for recovery of loans and would operate within the legal framework. The Company will ensure that all its employees are adequately trained to deal with the borrowers in an appropriate manner.
  • (d) The Company shall not charge foreclosure charges/ pre-payment penalties on all floating rate term loans sanctioned to individual borrowers.
  • 6. Interest Charges:

    a. The Board of Directors has adopted an interest rate model for determining the rate of interest to be charged on loans and advances, processing and other charges taking into account relevant factors such as, cost of funds, margin and risk premium, etc. The rate of interest and the approach for gradations of risk and rationale for charging different rate of interest to different categories of borrowers shall be disclosed to the borrower or customer in the application form and agreed interest are shall be communicated explicitly in the sanction letter.
    b. The rates of interest and the approach for gradation of risks shall also be made available on the web-site of the company. The information published in the website or otherwise published will be updated, whenever there is a change in the rates of interest.
    c. The rate of interest would be annualized rates so that the borrower is aware of the exact rates that would be charged to the account.

    7. Grievance Redressal Mechanism

    The implementation of the Fair Practice Code shall be the responsibility of the Company. The Company shall make every effort to ensure that its dealing with borrowers / customers is smooth and hassle free. Any complaint brought to the notice of the Company by a borrower / customer will be handled expeditiously.

    All disputes / complaints arising out of the decisions of the Company’s functionaries including issues relating to services provided by the outsourced agency would be heard and disposed of after it is brought to their notice.

    The Board of Directors of the Company has laid down the appropriate grievance redressal mechanism within the organization to resolve complaints and grievances. All disputes / complaints arising out of the decisions of the Company’s functionaries would be heard and disposed of at least at the next higher level after it is brought to their notice.

    A consolidated report of periodical review with compliance with the Fair Practices Code and functioning of the grievances redressal mechanism at various levels of management would be submitted to the Board of Directors (or a committee thereof) at regular intervals.

    The contact details of the Grievance Redressal Officer (“GRO”) and the local office of RBI (which can be approached, if the complaint / dispute is not resolved within a period of one month) will be displayed at all the branches / places where the Company conducts its business.

    In case of any complaint/grievance, the borrowers / customers including the applicants with disability (ies) may contact through any of the following channels:

    LEVEL - 1 The borrowers can directly approach the Branch Manager and enter his/her complaint/grievance in the compliant register maintained at the branch. The concerned Branch Official shall guide the borrowers who wish to lodge a complaint. The borrower may also lodge complaints / grievances at the following email id :
    LEVEL - 2 The borrower / customer can also approach Grievance Redressal Officer at the following address :-
    Ms. Sudipta Majumdar
    Ground Floor, Tower 3, Wing B, Kohinoor City Mall, Kohinoor City, Kirol Road, Kurla(W),Mumbai – 400070; Tel No. 022-42722554;
    Email id: homeservice@edelweissfin.com
    The Grievance Redressal Officer shall endeavour to provide the borrower / applicant with the resolution / response to the queries / complaints / grievances received from them within a period of minimum 15 days and maximum 30 days from the day of the receipt of the of the complaint / grievances.
    LEVEL - 3 If the Complaint / Grievances is not resolved within a period of one month, the borrower / customer / applicant may appeal to :-
    The Officer – in – Charge
    Department of Non – Banking Supervision Reserve Bank of India
    3rd Floor, Near Maratha Mandir, Byculla, Mumbai Central, Mumbai - 400008;
    Tel: +91 22-23084121/ 23028436 Fax: +91 22-23022011
    Email id- dnbsmro@rbi.org.in

    8. Ombudsman Scheme

    RBI vide its Notification Ref. CEPD. PRS. No. 4535/13.01.004/2018-19 dated 26th April, 2019, decided to extend the Ombudsman Scheme to those non-deposit taking NBFCs having customer interface and asset size of ₹100 crores (₹1 billion). Thus, the Company has adopted the Ombudsman Scheme as provided in Annexure A which shall be made available to the customers on the website of the Company.

    POINTS TO COMPLY ALONGWITH REDRESSAL PROCEDURE THEREOF:

    The above information shall also be displayed outside the branches / places where the business of the Company is transacted for the benefit of the Customers and shall also be made available with such designated officers for reference purpose.
    In case any complaint / grievance received by the Branch Official, the same shall be reported by him / her within 2 days from the receipt of the Complaint to the Grievance Redressal Officer / Nodal Officer / Principal Nodal Officer in order to ensure speedy resolution of the grievances / complaints. It shall be the responsibility of the Branch Official to provide the necessary details pertaining to the complaint / grievance to the Grievance Redressal Officer / Nodal Officer / Principal Nodal Officer to redress and resolve the complaint / grievances.

    9. Review of Policy

    The Code will be reviewed at yearly intervals or as and when felt necessary by the Board.

    ANNEXURE "A"

    OMBUDSMAN SCHEME FOR NON – BANKING FINANCIAL COMPANIES

    SALIENT FEATURES

    Grounds for filing a Complaint by a Customer :

    a. Non – presentation or inordinate delay in the presentation of PDC provided by the customer

    b. Failure to convey in writing, the amount of loan sanctioned along with terms and conditions including annualized rate of interest and method of application thereof;

    c. Failure or refusal to provide sanction letter / terms and conditions of sanction in vernacular language or a language as understood by the borrower

    d. Failure or refusal to provide adequate notice on proposed changes being made in sanctioned terms and conditions in vernacular language as understood by the borrower

    e. Failure or inordinate delay in releasing the securities documents to the borrower on repayment of all dues

    f. Levying of Charges without adequate prior notice to the borrower / customer

    g. Failure to provide legally enforceable built – in repossession clause in the Contract / loan agreement.

    h. Failure to ensure transparency in the contract/ loan agreement regarding (i) notice period before taking possession of security; (ii) circumstances under which the notice period can be waived; (iii) the procedure for taking possession of the security; (iv) a provision regarding final chance to be given to the borrower for repayment of loan before the sale/ auction of the security;

    i. Non-observance of directions issued by Reserve Bank to the non-banking financial companies;

    j. Non-adherence to any of the other provisions of Reserve Bank Guidelines on Fair Practices Code for Non-Banking Financial Companies.

    Procedure of Filing Complaint:

    How does Ombudsman take decision?

    Proceedings before Ombudsman are summary in nature
    Promotes settlement through conciliation If not reached, can issue Award/Order
    Can a customer appeal, if not satisfied with decision of Ombudsman?
    YES, If Ombudsman’s decision is appealable Appellate Authority: Deputy Governor, RBI

    NOTE:

    This is an Alternate Dispute Resolution mechanism
    Customer is at liberty to approach any other court/forum/authority for the redressal at any stage
    For further details of the Scheme please visit www.rbi.org.in

    DETAILS OF THE NODAL OFFICER APPOINTED BY THE COMPANY

    Nodal Officer Details of PNO / NO
    Principal Nodal Officer (PNO) Ms. Sudipta Majumdar
    Edelweiss Retail Finance Limited
    Ground Floor, Tower 3, Wing B, Kohinoor City Mall, Kohinoor City,
    Kirol Road, Kurla(W),Mumbai – 400070
    Tel No. +91 (22) 4272 2554; Email id: homeservice@edelweissfin.com
    Zonal Nodal Officer (NO)
    1 Mumbai Ms. Shivali Shinde
    Edelweiss Retail Finance Limited
    Ground Floor, Tower 3, Wing B, Kohinoor City Mall, Kohinoor City, Kirol Road, Kurla(W),
    Mumbai – 400070
    Tel No. +91 (22) 4272 2554
    Email id: homeservice@edelweissfin.com
    2 Delhi & Kolkata Mr. Suneet Grover
    Edelweiss Retail Finance Limited
    First Floor, 3B, Rajendra Park, Pusa Road,
    New Delhi- 110005
    Tel No. +91 (11) 4262 9905
    Email id: homeservice@edelweissfin.com
    3 Chennai Mr. K. Selvaraj
    Edelweiss Retail Finance Limited
    7th Floor, Kochar Tower,No.19, Venkatnarayana Road, T. Nagar, Chennai- 600 017;
    Tel No. 91 (44) 4022 1212
    Email id: homeservice@edelweissfin.com

    DETAILS OF NBFC – OMBUDSMAN APPOINTED BY RBI

    SR NO. CENTRE ADDRESS OF THE OFFICE OF NBFC OMBUDSMAN AREA OF OPERATION
    1 CHENNAI C/o Reserve Bank of India Fort Glacis,
    Chennai 600 001 STD Code: 044
    Telephone No : 25395964 Fax No : 25395488
    Email : nbfcochennai@rbi.org.in
    Tamil Nadu, Andaman and Nicobar Islands, Karnataka, Andhra Pradesh, Telangana, Kerala, Union Territory of Lakshadweep and Union Territory of Puducherry
    2 MUMBAI C/o Reserve Bank of India
    Banking Ombudsman –II (NBFC Vertical) RBI Byculla Office Building
    Opp. Mumbai Central Railway Station Byculla, Mumbai-400 008
    STD Code: 022; Telephone No : 23028140 Fax No : 23022024
    Email : nbfcomumbai@rbi.org.in
    Maharashtra, Goa, Gujarat, Madhya Pradesh, Chhattisgarh, Union Territories of Dadra and Nagar Haveli, Daman and Diu
    3 NEW DELHI C/o Reserve Bank of India Sansad Marg New Delhi -110001
    STD Code: 011 Telephone No: 23724856
    Fax No : 23725218-19;
    Email : nbfconewdelhi@rbi.org.in
    Delhi, Uttar Pradesh, Uttarakhand, Haryana, Punjab, Union Territory of Chandigarh Himachal Pradesh, and Rajasthan and State of Jammu and Kashmir
    4 KOLKATA C/o Reserve Bank of India
    15, Netaji Subhash Road Kolkata-700 001 STD Code: 033Telephone No : 22304982
    Fax No : 22305899
    Email : nbfcokolkata@rbi.org.in
    West Bengal, Sikkim, Odisha, Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Bihar and Jharkhand

    Policy for determining Interest Rates and Processing and other charges

    As stipulated by the Reserve Bank of India (RBI), the Board of Directors of Edelweiss Retail Finance Limited (ERFL) in their meeting held on February 25, 2015 laid down the policy for determining Interest Rates, Processing and other charges for the Loan against Property (LAP), Small and Medium Enterprise (SME) & Rural Finance products. The said policy has been framed in the light of RBI circular Ref. No. RBI/2008-09/337/DNBS (PD)/CC. No. 133/03.10.001/2008-09 dated January 2, 2009 and is as under:

    Interest Rate for Loan against Property
    The interest rates charged by ERFL shall be linked with the ERFL Mortgage Reference Rate (ERFLMRR). ERFLMRR shall be determined by the Risk & Asset Liability Management Committee of the ERFL on the basis of the cost of borrowing of ERFL, operating cost, liquidity and interest rate trend in the market and return on equity.

    The Risk/Asset Liability Management Committee shall review ERFLMRR on such periodicity as may be deemed and modify the same depending upon the market trends and will adopt the basic formula as provided below for determining ERFLMRR with such modification as may be deemed necessary.

    The interest rate shall be linked to ERFLMRR and spread (plus or minus) will be determined by the sanctioning authority based on inherent credit and default risk in the product and customer per se arising from customer segment, profile of the customers, professional qualifications, stability in earning and employment and repayment ability, overall customer yield, risk premium, nature and value of primary and collateral securities, past repayment track record of customers, external rating of the customers, industry trends, tenor of customer relationship, offerings by competition etc. The company may adopt an interest rate model whereby the rate of interest for the same product and tenor availed during the same period by customers would be different from customer to customer depending upon consideration of any or combination of a few or all factors listed above. Hence the rate of interest applied would be different from customer to customer and his / her loans.

    All the LAP loans made by ERFL shall generally provide for reset of interest rate unless sanctioning authority decides for a fix rate of interest. The sanctioning authority shall decide the periodicity of interest reset. The reset shall be linked to the prevailing ERFLMRR.


    Calculation of MRR (For Incremental Loan on a Base Amount of INR 100)
        Fig in INR
    A
    a.1
    a.2
    Fund Requirement for Loan Amount of INR 100
    Loan Amount
    RBI Capital Adequacy Requirement (CRAR)
    Current : 15%
    B
    b.1
    b.2
    Funding Composition
    Own Capital
    Borrowed Funds
    C
    c.1

    c.2
    Funding Cost
    Cost of Own Capital
    (Assumed flat rate of 21%)
    Borrowing Cost
    (Weighted Rate for last 6 months + 200 Basis point spread)
    D General Provisioning for Standard Assets
    E Risk Margin / Credit Cost  
    F Administrative Cost  
      ERFLMRR
    Interest Rate for Small and Medium Enterprise Loan
    The interest rates charged by ERFL shall be linked with the ERFL Small and Medium Enterprise Reference Rate (ERFLSMERR). ERFLSMERR shall be determined by the Risk & Asset Liability Management Committee of the ERFL on the basis of the cost of borrowing of ERFL, operating cost, liquidity and interest rate trend in the market and return on equity.

    The Risk/Asset Liability Management Committee shall review ERFLSMERR on such periodicity as may be deemed and modify the same depending upon the market trends and will adopt the basic formula as provided below for determining ERFLSMERR with such modification as may be deemed necessary.

    The interest rate shall be linked to ERFLSMERR and spread (plus or minus) will be determined by the sanctioning authority based on inherent credit and default risk in the product and customer per se arising from customer segment, profile of the customers, professional qualifications, stability in earning and employment and repayment ability, overall customer yield, risk premium, nature and value of primary and collateral securities, past repayment track record of customers, external rating of the customers, industry trends, tenor of customer relationship, offerings by competition etc. The company may adopt an interest rate model whereby the rate of interest for the same product and tenor availed during the same period by customers would be different from customer to customer depending upon consideration of any or combination of a few or all factors listed above. Hence the rate of interest applied would be different from customer to customer and his / her loans.

    All the SME loans made by ERFL shall generally provide for reset of interest rate unless sanctioning authority decides for a fix rate of interest. The sanctioning authority shall decide the periodicity of interest reset. The reset shall be linked to the prevailing ERFLSMERR.


    Calculation of ERFLSMERR (For Incremental Loan on a Base Amount of INR 100)
        Fig in INR
    A
    a.1
    a.2
    Fund Requirement for Loan Amount of INR 100
    Loan Amount
    RBI Capital Adequacy Requirement (CRAR)
    Current : 15%
    B
    b.1
    b.2
    Funding Composition
    Own Capital
    Borrowed Funds
    C
    c.1

    c.2
    Funding Cost
    Cost of Own Capital
    (Assumed flat rate of 21%)
    Borrowing Cost
    (Weighted Rate for last 6 months + 200 Basis point spread)
    D General Provisioning for Standard Assets
    E Risk Margin / Credit Cost  
    F Administrative Cost  
      ERFLSMERR
    Interest Rate for Rural Finance
    The interest rates charged by ERFL shall be linked with the ERFL Micro Finance Reference Rate (ERFLMFRR). ERFLMFRR shall be determined by the Risk & Asset Liability Management Committee of the ERFL on the basis of the cost of borrowing of ERFL, operating cost, liquidity and interest rate trend in the market and return on equity.

    The Risk/Asset Liability Management Committee shall review ERFLMFRR on such periodicity as may be deemed and modify the same depending upon the market trends and will adopt the basic formula as provided below for determining ERFLMFRR with such modification as may be deemed necessary.

    The interest rate shall be linked to ERFLMFRR and spread (plus or minus) will be determined by the sanctioning authority based on inherent credit and default risk in the product and customer per se arising from customer segment, profile of the customers, professional qualifications, stability in earning and employment and repayment ability, overall customer yield, risk premium, nature and value of primary and collateral securities, past repayment track record of customers, external rating of the customers, industry trends, tenor of customer relationship, offerings by competition etc. The company may adopt an interest rate model whereby the rate of interest for the same product and tenor availed during the same period by customers would be different from customer to customer depending upon consideration of any or combination of a few or all factors listed above. Hence the rate of interest applied would be different from customer to customer and his / her loans.

    All the Rural Finance loans made by ERFL shall generally provide for reset of interest rate unless sanctioning authority decides for a fix rate of interest. The sanctioning authority shall decide the periodicity of interest reset. The reset shall be linked to the prevailing ERFLMFRR.

    Calculation of ERFLMFRR (For Incremental Loan on a Base Amount of INR 100)
        Fig in INR
    A
    a.1
    a.2
    Fund Requirement for Loan Amount of INR 100
    Loan Amount
    RBI Capital Adequacy Requirement (CRAR)
    Current : 15%
    B
    b.1
    b.2
    Funding Composition
    Own Capital
    Borrowed Funds
    C
    c.1

    c.2
    Funding Cost
    Cost of Own Capital
    (Assumed flat rate of 21%)
    Borrowing Cost
    (Weighted Rate for last 6 months + 200 Basis point spread)
    D General Provisioning for Standard Assets
    E Risk Margin / Credit Cost  
    F Administrative Cost  
      ERFLMFRR
    Processing Fee/Upfront Fee
    Processing fee shall be determined by the sanctioning authority on the basis of the quantum of work involved in credit appraisal, volume of documentation involved, other expenses involved in the transaction and negotiation with client. The Risk/Asset Liability Management Committee of the Board of Directors of ERFL may from time to time review the guidelines for charging processing fee or prescribe fixed processing for a particular product. The sanctioning authority shall have power to reduce / waive the processing fee on case to case basis.
    Recovery Agency

    Vaishnavi Management Pvt. Limited
    Address- Unit No. 6/6B,
    Udit Mittal INDL. Premises CO-OP. Society
    Andheri, Kurla Road,
    Andheri (East), Mumbai-400059
    Edelweiss Financial Services Limited 2016

    Edelweiss Retail Finance Limited (ERFL) | CIN: U67120MH1997PLC285490

    The Company is having valid Certificate of Registration (CoR) No. B-13.02149 dated January 4,2017 issued by Reserve Bank of India (RBI) under Reserve Bank of India Act, 1934. However, RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of Company or correctness of any of the statements or representation made or opinion expressed by the Company.

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