Fair Practices Code (FPC)

1. Preamble

The Reserve Bank of India (RBI) has issued guidelines on Fair Practices Code (FPC) for all Non-Banking Financial Companies (NBFCs) to establish standard conduct, fair treatment, and consumer protection principles. In compliance with these guidelines, Lord Krishna Financial Services Limited ("Prest Loans" / "the Company") has formulated and adopted this comprehensive Fair Practices Code.

2. Purpose of the Code

The code has been formulated by the Company to:

• Promote good and fair lending practices by setting minimum standards across all customer interactions.
• Increase transparency in credit agreements so borrowers have a complete understanding of charges, interest calculations, and contractual obligations.
• Foster a fair, constructive, and dignified relationship between borrowers and the Company.
• Ensure compliance with all applicable statutory and regulatory directives issued by the RBI.

3. Definitions

• “Board” means the Board of Directors of Lord Krishna Financial Services Limited.
• “Company” means Lord Krishna Financial Services Limited operating under the trade name “Prest Loans”.
• “Borrower” means any individual, sole proprietorship, partnership firm, LLP, or corporate body availing credit facilities from the Company.
• “KFS” means Key Fact Statement detailing annualized percentage rate (APR), fees, and terms prior to sanction.

4. Key Commitments

The Company commits to:

• Act fairly and reasonably in all dealings with borrowers, ensuring products meet acceptable financial standards.
• Provide complete, accurate, and unambiguous product details in English, Hindi, or the vernacular language preferred by the borrower.
• Ensure all fees, interest rates, amortizations, and penal charges are disclosed upfront before loan sanction with zero hidden levies.
• Handle customer complaints promptly and compassionately through our formal grievance redressal desk.

5. Loan Applications, Processing & Disposal

All loan application forms include necessary information regarding required KYC documents, eligibility criteria, and fee structures. The Company provides a written or digital receipt / acknowledgment for all loan applications received. The standard turnaround time for disposal of loan applications is communicated upfront and typically ranges between 48 hours to 7 business days from receipt of complete documentation.

6. Loan Appraisal & Key Fact Statement (KFS)

The Company conveys in writing or through digital portal to the borrower the exact sanctioned loan amount, annualized percentage rate (APR), amortization schedule, EMI payment dates, and terms and conditions. A standardized Key Fact Statement (KFS) is provided to every borrower before loan drawdown. A formal copy of the executed Loan Agreement along with all annexures is delivered to the borrower upon sanction.

7. Disbursement & Changes in Terms and Conditions

Disbursements are credited directly to the borrower's verified bank account via NEFT, RTGS, or NACH. The Company gives prior written or electronic notice to borrowers of any proposed changes to terms and conditions, including changes in interest rates, service fees, or prepayment charges. Changes in interest rates and charges are effected only prospectively.

8. Post-Disbursement Conduct & Recovery Norms

The Company maintains an uncompromised zero-harassment policy during recovery. Our staff and authorized representatives observe the following standards:

• Borrowers are contacted only during reasonable hours (between 08:00 AM and 07:00 PM).
• Staff members conduct themselves with dignity, courtesy, and professional restraint, refraining from aggressive, abusive, or coercive behavior.
• Customer privacy is strictly respected; family members, neighbors, or third parties are never harassed or coerced regarding borrower obligations.
• Borrowers are provided adequate notice before initiating any formal legal or recovery proceedings.

9. Release of Collateral Documents & NOC

Upon full and final repayment of all dues under the loan agreement, the Company releases all original title deeds, collateral documents, and hypothecation charges, and issues a formal No Objection Certificate (NOC) / No Dues Certificate within 30 days of account closure, subject to any legitimate right of set-off or lien for other outstanding credit facilities.

10. Repossession of Hypothecated Assets

Repossession of hypothecated assets financed by the Company is undertaken strictly as a measure of last resort. The Company adheres to statutory process: giving reasonable notice, conducting fair independent market valuation, granting the borrower a final opportunity to clear overdue dues, and accounting for surplus realization from sale proceeds.

11. Interest Rate & Penal Charges Policy

The Company has adopted an objective, risk-graded discrete pricing model formulated pursuant to RBI Master Directions. For complete schedule of base rates, credit spreads, and documentation charges, please visit our dedicated Interest Rate Model. Penal charges in case of default are levied separately without capitalization pursuant to our Penal Charges Policy.

12. Complaints & Grievance Redressal

If a borrower has any dissatisfaction regarding service, interest calculations, or collection conduct, they can invoke our structured 3-tier Grievance Redressal Mechanism: