Fair Practices Code (FPC)

INTRODUCTION:

Aastha Micro Credit is a non-deposit taking Non-Banking Finance Company. The Company is presently in the business of providing different types of loans which include Personal Loans, etc., to its various customers.

Such credit facilities are extended to “Individual” types of customers. Aastha Micro Credit (“the Company”) has put in place the Fair Practices Code (“FPC”) as per the guidelines and it has been duly approved by the Board of Directors.

The FPC sets out the principles for fair practices, transparency and adequate disclosures while dealing with its customers. The commitments outlined in this FPC are applicable under normal operating environment; however, under situations beyond the control of the Company, it may not be possible to fulfil the commitments made hereunder.

1. KEY COMMITMENTS:

a. Act fairly and reasonably in all dealings with customers.

  • Meet commitments and standards specified in the Code
  • Ensure compliance with applicable laws and regulations
  • Dealings will rest on integrity and transparency

b. Act fairly and reasonably in all dealings with customers.

c. Handle grievances fairly and promptly.

d. Publicize the Code and make it available on request.

2. INFORMATION:

a. The Company shall help its customers choose products and services that meet their needs and provide clear information explaining the key features of the products and services.

b. Inform customers about documents and information required to establish customer identity and address and comply with Know Your Customer (KYC) guidelines.

3. APPLICATIONS FOR LOAN & THEIR PROCESSING:

The Company operates a lending platform “Zest Cash”, which is a mobile and web-based platform and a cutting-edge Fintech product designed to make personal financing faster and easier.

Customers can avail loans via an Android-based mobile application anytime and anywhere. The entire process—from registration to loan application, processing, and disbursement—is completely online.

Loan disbursement is made directly into the borrower’s bank account. All communications shall be in the vernacular language or a language understood by the borrower.

Applications complete in all respects are processed within a reasonable timeframe. In case of rejection, the borrower shall be informed accordingly.

4. LOAN APPRAISAL AND TERMS & CONDITIONS:

Borrowers are informed of the sanctioned amount, interest rate and terms via SMS/email in an understandable language. Consent is recorded digitally.

Penalties are disclosed in FAQs. Multiple signing options such as Aadhaar OTP, digital signature, and checkbox consent are offered based on the borrower’s risk profile.

5. DISBURSEMENT OF LOANS INCLUDING CHANGES IN TERMS:

a. Borrowers are notified in advance of any changes in terms.

b. Recall of payment shall follow the loan agreement.

c. Borrowers must enter into a loan agreement prior to disbursement.

6. INTEREST RATE MODEL & RATE OF INTEREST CHARGES:

Rates are determined based on:

  • Cost of borrowings
  • Operating costs and expected returns
  • Credit and default risk
  • Customer creditworthiness
  • Market competition
  • Risk categorization of borrowers
Sr. No.FactorDescription
1Weighted Average Cost of BorrowingCost of funds borrowed privately
2Fund Raising CostProcessing and brokerage fees
3Opex CostStaff, marketing, and operational expenses
4Risk PremiumRisk buffer for business uncertainties
5Base ROAMinimum return expected by the Company
7. GENERAL:

  • No interference in borrower affairs except as per agreement
  • Loan transfer requests handled within 21 days
  • No harassment or unethical recovery practices
  • No foreclosure charges on floating rate loans for individuals
8. GRIEVANCE REDRESSAL MECHANISM:

  • Grievance redressal forum established
  • Periodic review of complaints and FPC
  • Contact details of grievance officer displayed
9. POSTING ON WEBSITE:

The Fair Practices Code shall be displayed on the website in a language understood by the borrower.

10. INTEREST POLICY:

Zest Cash offers loans up to 36% p.a. starting from ₹1500 with no hidden charges, flexible repayment options, and transparent processing.

Type of ChargeCharge % / INR
Processing FeeStarts from ₹1500
Loan Foreclosure / Pre-payment₹0
Additional Processing Fee15% of Loan Amount
GST18% of Processing Fee
Rate of InterestUp to 270% p.a. (0% for 30-day loan)
Late Payment PenaltyUp to 0.75% per day
Stamp DutyAs per law
Other Charges₹0