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Statutory disclosures

Policies, codes and the escalation path.

Published under the Reserve Bank of India's Master Direction for Non-Banking Financial Companies and the Reserve Bank – Integrated Ombudsman Scheme, 2021. Board-approved and reviewed annually.

Draft for compliance review. Figures, names, addresses and registration numbers throughout are placeholders and must be replaced with Kovid Finance's actual particulars before publication.

Fair Practices Code

Version 3.0Approved TBCNext review TBC

Adopted pursuant to the Reserve Bank of India's Master Direction – Non-Banking Financial Company – Scale Based Regulation Directions, 2023. This Code governs how Kovid Finance deals with borrowers at every stage, from enquiry to closure.

  1. Applications and their processing

    All communication with the borrower is in English or Hindi, at the borrower's preference. Every loan application form states the documents required to be submitted with it.

    We acknowledge receipt of every application in writing and indicate the timeframe within which it will be disposed of. Where an application is rejected, we convey the reason in writing.

  2. Appraisal and terms and conditions

    A written sanction letter conveys the amount sanctioned, the annualised rate of interest, the method of application, and all charges. We obtain the borrower's written acceptance of these terms on record.

    A Key Facts Statement is furnished to every borrower before execution of the loan agreement, setting out the all-inclusive Annual Percentage Rate, the recovery mechanism, the grievance contact and the details of any recovery agent authorised to make contact.

    • Penal charges, where levied, are disclosed as charges and are not capitalised into the interest rate.
    • A copy of the loan agreement and every enclosure quoted in it is furnished to the borrower at the time of sanction.

  3. Disbursement and changes in terms

    Disbursement is made in accordance with the terms of sanction. Any change in disbursement schedule, interest rate, service charges or prepayment terms is notified to the borrower in writing, and any such change is applied prospectively only.

  4. Recovery

    Recovery is pursued only through lawful means. Kovid Finance does not resort to harassment, intimidation, or persistent contact at odd hours. Borrowers are contacted only between 8:00 a.m. and 7:00 p.m., except with the borrower's express consent.

    • Staff and any authorised agents are trained to deal with customers in an appropriate manner.
    • The identity and authority of any recovery agent is disclosed to the borrower before contact.
    • On repayment in full, all securities are released within 30 days, subject to any legitimate right of lien.

  5. Non-interference

    Kovid Finance refrains from interference in the affairs of the borrower except for the purposes provided in the terms and conditions of the loan agreement, unless information not earlier disclosed by the borrower comes to our notice.

  6. Confidentiality

    Borrower information is treated as confidential and is not disclosed to any third party except where disclosure is required by law, by a regulator, by a credit information company, or with the borrower's express written consent.

  7. Language and mode of communication

    This Code is available in English and Hindi at all our offices and on our website. A copy is furnished free of charge to any borrower on request.

  8. Grievances

    The mechanism for raising and escalating a grievance is set out in the Grievance Redressal Policy, which forms part of this Code. A borrower who is not satisfied with our resolution may approach the RBI Ombudsman.

Issued by

Kovid Finance Private Limited · CIN U67120RJ1993PTC007199 · RBI Certificate of Registration B-10.00134 · Registered office: 4th Floor, City Mall, Kota, Rajasthan 324007. This document is approved by the Board of Directors and supersedes all previous versions.