Branch address seal

Registered Office: 29/1, Sir. M N Krishna Rao Road, Basavanagudi, Bangalore – 560 004
Grievance Escalation: For unresolved grievances please write to the Deputy General Manager at
the above address or E-mail: grievance.redressal@canfinhomes.com

FAIR PRACTICES CODE (updated till 31/08/2020)

Can Fin Homes Ltd. is a public limited company incorporated under Companies Act, 1956,
sponsored by Canara Bank and Regulated by the directives of National Housing Bank.
This Code has been formulated by Can Fin Homes Ltd. (‘the Company’) pursuant to the Guidelines
issued by the National Housing Bank on Fair Practices Code for Housing Finance Companies vide
its circular bearing No. NHB (ND)/DRS/POL-No.16/2006 dated September 05, 2006 and
amendments communicated by NHB from time to time, latest being circular dated 24/04/11.
The said Code is meant to promote good and fair practices, increase transparency, encourage
market forces, and promote fair and cordial relationship between the borrower/customer and the
Company and to foster confidence of the customer in the Company.

Objective:
Our main business is extending loans for purchase / construction / extension / repairs / renovation
etc. of houses, apartments etc., for purchase of residential sites / other mortgage related loans
(other than housing) and acceptance of deposits from public.

The objective of the code, is primarily to ensure fair and transparent transactions with all our
customers. This will also facilitate the customers to have a better understanding about our
products and the various charges levied by the Company. The following Fair Practices Code shall
be followed by the Company.

I THE FAIR PRACTICES CODE (FPC) FOR LENDING

1. The Company will publish salient features of all loan products, interest rate range of contracted
loan for different categories of advances granted to individual borrowers, mean interest rates,
Annual percentage of rates (APR), total fees and charges applicable on various types of loans.
(Please refer Para II) and deposit products (Please refer Para III) in the Company website
http://www.canfinhomes.com.
2. The Company would publish the Schedule of Charges, Rate of Interest on various loan/ deposit
products, extension of tenure of the loans, offer of concessions etc. The amount of refundable
fees in case of non-acceptance of the application, pre-payment options, waiver of collection of
charges etc. so that meaningful comparison with that of other Housing Finance Companies
(HFCs)/banks can be made by the prospective borrowers to enable them to take informed
decisions. {Para VIII. (4) to (10)}
3. The Company would indicate the time frame within which loan applications containing full
information/ details/documents will be disposed off.
4. The Company would verify the loan applications within a reasonable period of time. If additional
details/documents are required, it would intimate the applicants/borrowers immediately
thereafter.
5. The Company would ensure that there is proper assessment of credit applications submitted by
the applicants /borrowers.

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6. The Company would carry out proper due diligence on creditworthiness of applicants/ borrowers
notwithstanding the stipulation of any security and margin made by it. The Company will pass
the customer’s information/ account details to Credit Information agencies/TPAs/ others for this
purpose.
7. The Company would make proper assessment of the credit needs of the borrowers in order to
take care that the credit limits which are sanctioned, meet the genuine requirement of such
borrowers.
8. The Company would convey to the applicants/borrowers concerned that the Credit limits
sanctioned to them along with the terms and conditions thereof (in duplicate) and obtain their
specific acknowledgement for acceptance of the same, for its records. The copy of the FPC is
also provided along with sanction letter for the information of the applicants/ borrowers.
9. As per NHB guidelines “NHB/ND/DRS/ Misc. Circular No.12/13 dt.08/05/13 and NHB/ND/ DRS/
Pol.No.54/ 2012-13 dt.05/04/13”, the Company will issue Most Important Terms and Conditions
(MITC) agreed at the time of sanction/ disbursement of the loan to the borrower and obtain
his/her acknowledgement in the duplicate copy of MITC.
As per NHB circular No. NHB (ND)/DRS/Policy Circular No.70/2014-15 dt.20/04/15, the
Company will display such additional information and MITC in the notice Board of the Company
in the prescribed format and website of the Company from time to time.
10. While conveying the terms & conditions and other covenants governing the loan details
stipulated by the Company in writing to the applicant/ borrower, the name and designation of
the Authority of the Company, as per whose orders the sanction communication has been
released, would also be duly indicated therein.
11. The Company would ensure timely disbursement of loans sanctioned in conformity with the
terms & conditions of sanction and compliance of such terms & conditions by the borrower/s/
Guarantors.
12. Details of the loan/deposit products, Schedule of charges, ROI (card rates) for loans & deposits
will be published in our website www.canfinhomes.com and on the notice boards of all branches
from time to time. As and when changes are effected on the ROI on loans & deposits (upward
revision & downward revision), schedule of charges, terms & conditions, guidelines stipulated
by NHB etc. will be published in the website and displayed in branch notice boards immediately.
No written communication will be sent to customers/ borrowers/ guarantors individually.
13. Whenever upward revision in the rate of interest for loans is effected, same is applicable
prospectively to all loans including those already sanctioned and outstanding on the date of
change in ROI. SMS on such increased ROI will be sent to the mobile number registered with
the Company.
14. In the case of loans where repayments are not forthcoming, ECS/PDC’s are returned, perfection
of securities not completed within stipulated time, accounts reported in SMA category, then
such accounts, at the discretion of the Company, will be reviewed at periodical intervals and
will be re-risk rated (S1/S2+/S2/S3) as the case may be and ROI applicable to the respective
risk category will be charged. Enhancement in the ROI, if any, consequent upon such risk rating
will be communicated to the borrower by SMS alerts to the mobile number registered with the
Company.
15. Extension of tenure of loan: Whenever there is any upward revision in ROI (SMS sent) as
outlined in the above paras 12 & 13, borrower shall have the following options: -
i) Agreeing to pay the applicable enhanced EMI prospectively or
ii) Pay applicable lump sum prepayments (to be arrived/provided by the company) and continue
same EMI.
iii) Continue same EMI and extend the tenure of the loan subject to maximum tenure of 30
years or his/her reaching age of maximum 70, whichever is earlier.
It shall be the responsibility of the borrower to visit/ contact the branch and opt any one of
above 3 options in writing. If the borrower does not visit/ contact, then the option (iii) will be
exercised by the company automatically /prospectively and SMS will be sent to his/her mobile
number registered with the company.
16. In respect of such of those loan accounts where ROI has been increased, there will be a
corresponding increase in the EMI such that the EMI is sufficient to get the loan closed within
the balance tenure. The borrower shall also have the option of paying the lump sum amount
/prepayment (to be arrived /provided by the company) and continue the same EMI.

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17. Whenever downward revision is effected in the ROI (card rates) for loans, same is applicable
for new loans granted prospectively. In respect of old loans, borrowers will have the option of
availing the benefit of reduced interest rate by switching over to the anniversary risk rating
and reset of ROI mode as enumerated below:

The automated system of risk rating and reset of ROI which facilitates annual resetting of ROI
on the basis of risk rating has come in to force effective from 01/04/2017. Under the new
system, the risk rating of all the live loan accounts shall be done on an anniversary basis. Vide
this process the accounts will be reviewed and rate of interest will be reset according to the risk
rating of the borrowers.

Loans availed before 01/04/2017:

i) The borrowers who have availed loan before 01/04/2017 are given an option to switch over
to the annual resetting mode by executing a link letter which forms a part of the loan
documentation. If the borrower executes the link letter then the reset scheme will become
applicable on anniversary basis, i.e. after one year from the month subsequent to month of
submission of the link letter (without IAC).
ii) Those borrowers who are willing to avail the benefit of prevailing card rate shall get their
accounts risk rated and reset the ROI after payment of applicable interest adjustment charges
(IAC) with link letter. The ROI shall be reset effective from the month subsequent to the
payment of IAC and the ROI will continue for one year from the date of reset.
iii) If the borrower doesn’t execute the link letter, the loan account shall not be eligible for the
annual reset scheme and the account shall carry the existing rate till the next revision and
upward revision, if any in the ROI is applicable, to the loan account prospectively till such time
the borrower opts for annual resetting mode.

Loans availed on or after 01/04/2017:

The loan accounts are automatically covered under the new system of annual resetting of ROI
according to the risk rating of the borrowers, on anniversary basis.
During the anniversary period, in case of further reduction in ROI, the borrower has the option
to get the benefit of the reduced rate after payment of applicable IAC. Such reduced rate will
remain in force for one year from the date of such reset and account will become due for risk
rating and reset of ROI after one year from that date.

18. Method of appropriation of bulk payments from borrowers :

i. The bulk payment made by the borrowers with specific instruction for advance payment will
be considered as advance EMI payments. Such advance EMI will not be credited in the loan
account, but held as advance EMI separately and the same will be adjusted to the EMIs
when it becomes due in the account.
ii a. Any amount paid by the borrower without any specific instructions to appropriate
towards part-prepayment / advance payment (through online, across the counter or
otherwise) will be considered as advance payment by default and will not be credited to
the loan account, but held as advance EMI separately and the same will be adjusted to
the EMIs when it becomes due in the account.
b. In respect of loans where there are no delinquencies in the past 12 months, but presently
having LS Excess EMI of more than one month, the same will be adjusted at the
beginning of every succeeding quarter to the credit of respective loan accounts as against
the year-end i.e., 31st March applicable at present. The schedule balance will be
accordingly realigned in these accounts.
c. In respect of Loans where there are No delinquencies in the past 12 months, but presently
haying LS Excess EMI of less than One EMI, the amount remaining in the LS Excess EMI
account will be credited to the loan account at the time of year end i.e., 31st March.
iii. If the borrower opts for part prepayment (of Principal) then the amount will be credited to
his loan account, with or without change in EMI (as per choice of borrower, provided that
at least the prepayment amount is equal to or more than 5 EMIs) at the specific request of
the borrower.
iv. The advantage of both principal deduction and advance EMI to any customer cannot be
provided by the Company together at the same time and against the same amount.

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19. Request for reduction of EMI shall be considered only in the following circumstances:
i. Any pro-rata reduction in the amount of EMI on account of restriction of the loan amount/
cancellation of unavailed limit at the specific request of the borrower to keep the same
tenure of the loan.
ii. Any pro-rata reduction in the amount of EMI at the specific request of the borrower on
account of bulk/ lump sum pre-payment of the loan by the borrower to keep the same
tenure of the loan. In respect of Prepayment, customer will have the option of reduction in
EMI only in cases where such prepayment is equivalent to minimum 5 EMIs.
20. It is the borrower’s responsibility to register the correct postal address, E-mail ID, Telephone
Number & Mobile Number and any other means of communication with the relevant branch of
the Company, intimate any changes and get the same registered in the relevant branch. Proper
acknowledgement of intimation of such changes shall be obtained from the branch by the
borrower.
21. The Company will publish FPC/ MITC updated from time to time covering schedule of charges,
changes in terms and conditions etc. in the Company’s official website www.canfinhomes.com
from time to time, besides displaying in the notice board of the branch.
22. The Company would promptly attend to any “lender-related” genuine difficulty/ies that the
borrowers may face. The Company will be concerned with sanction and disbursement of the
loan, but will not offer any warranty for the property/ property related issues and the borrower
should satisfy himself with the title of the property, quality of the construction, progress of the
project etc.
23. The Company would release all securities on receiving payment of loan or realization of loans
subject to any legitimate right or lien for any other claim the Company may have against
Borrowers as guarantors/ co-applicant/co-owners. If such right of set off is to be exercised,
the borrower would be given notice about the same with full particulars about the remaining
claims and documents under which the Company is entitled to retain the security till the
relevant claim is settled/ paid.
24. The Company will store loan papers/property documents at centralized locations (fireproof
environment), presently at Bangalore-Uttarahalli, Hyderabad-Ramachandrapuram and NCR
Gurgaon, after full disbursement/ perfection of securities is ensured and audit of the branch
is completed. (Refer para IX).
25. The Company in the normal course, would endeavor not to interfere in the affairs of its
borrowers which are not either directly or indirectly related to its extending the credit facilities
unless new information, not earlier disclosed by the borrowers concerned has come to the
notice of the Company.
26. The Company will not discriminate on grounds of sex, caste and religion in the matter of
lending. However this does not preclude the Company from participating in credit-linked
schemes framed for weaker sections of the society.
27. At the time of sanction or any time thereafter, the Company would inform the customer by
way of sanction communication indicating the amount of the loan, tenure and periodicity of
repayment process etc. However, if the borrower does not adhere to the repayment schedule,
the Company shall follow normal legitimate recovery procedures like sending SMS alerts,
telephone calls, emails, visiting the customer’s residence/ office, re-possession etc. of the
property without resorting to undue coercion. The Company is at liberty to publish the
photographs of the defaulting borrowers/ guarantors in the Company’s website/ Newspaper
and other print/electronic media.
28. The Company will have Complaints Redressal Mechanism (Refer Para V)
29. The customer should comply with the rules of Know Your Customer (KYC), Anti Money
Laundering (AML) (Refer para VII), and Customer Acceptance Policy (Para VI), as published
in our website from time to time.
30. The Company shall treat the information relating to customers as strictly confidential and
shall not share any information, unless required under law or permitted by the customer.
31. As per the NHB guidelines, HFC should submit the list of willful defaulters on a monthly basis
to all Credit information Companies. The Company shall communicate any information relating
to the borrower/s/ Guarantors to any Credit Information Companies and in case of willful
default to publish the names of such borrowers/ guarantors in the website of the Company or
the websites of RBI/ NHB/ Credit Information Companies from time to time

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32. The Company’s Direct Selling Agents (DSA) shall follow the code of conduct as prescribed by
the Company.
33. The Company shall inform the guarantor/s if any, for the loan provided about quantum of
liabilities as a guarantor and terms relating to the same including any changes thereof from
time to time.
34. Upon the specific request of the customer, the Company shall provide the facility of electronic
transfer of loan proceeds through NEFT/RTGS to the account of the beneficiary/ builder/
vendor and the Company.
35. The Company and Customer shall act fairly and diligently in dealing with each other. If the
customer acts fraudulently/ negligently and/or suppresses any information, he/she will be
responsible for all the losses caused to the Company and liable for criminal/ legal action.
36. The Company is having the customer portal facility in the website and the customer can access
the accounts through such facility for obtaining Provisional/Final Interest Paid Certificate for
IT purposes by properly registering the passwords with the branch of the Company where
he/she is having his/her dealings. The borrower can also make payment of loan instalments
by accessing Company’s website www.canfinhomes.com.
37. Generally, all the data/ documents pertaining to any account of the customer will be purged
after 8 years from the closure of the loan/account and the Company will not entertain any
request for providing any information/data of such accounts after 8 years.
38. Copy of the loan documents along with relevant enclosures will be made available at the
specific request of the borrower after completion of all documentation formalities.
39. After disbursement of the loan and issue of cheque in the name of the borrower/ vendor, if
the purchase transaction could not be completed for whatever reasons and the cheque is
recredited to the loan account, the borrower shall pay the interest at applicable rate for the
period between date of debit to the loan account and closure of the loan.
40. In the case of loans for which the Company has availed refinance from NHB (LUH/GRHS etc.),
all the terms and conditions including rate of interest advised by NHB for such loans shall be
stipulated. In case, any of such loans for which refinance is availed becomes ineligible for such
refinance from NHB (NPA or any other reasons), the rate of interest applicable to general
scheme including penal interest, if any, shall be charged by the Company after giving due
notice to the borrower/s from the date of such account becoming ineligible for refinance.
Proper notification of revision in the rate of interest shall be communicated to the borrower.
41. Wherever, the Company has made a claim on the guarantor on account of the default made
by the principal debtor, the liability of the guarantor is immediate. In case the said guarantor
refuses to comply with the demand made by the Company, despite having sufficient means to
make payment of the dues, such guarantor would also be treated as a willful defaulter.
42. There shall be no discrimination in extending products, services, facilities etc., including loan
facilities to physically challenged / visually impaired persons on the grounds of disability. The
Company shall take special efforts to make it easy and convenient for customers like senior
citizens, illiterate persons and physically challenged / visually impaired persons in their
dealings with us.

II Available Loan Products

As of now, Can Fin Homes Ltd has 24 products pertaining to our lending schemes to the customers,
namely, (1)Individual Housing Loans (201), (2)Site Loans (203 & 204), (3) Composite Loans (226
& 238) (Purchase of Site and Construction), (4) Personal Loans (220), (5)Mortgage Loans (205),
(6) Loans against Rent Receivables (208) (LRR), (7) Loans for Commercial Properties (209) (LCP),
(8) Loans for Children Education (211) (LCE), (9) Builder Loans (206), (10) Line of Credit (207)
(LOC), (11) Flexi LAP (222), (12) Commercial Housing Loan (225), (13) Loan on Deposit (221),
(14) Special Urban Housing Refinance Scheme – Direct (227), (15) Special Urban Housing
Scheme- Indirect (228), (16) Credit Link Subsidy Scheme (CLSS) under Pradhan Mantri Awas
Yojana (PMAY) (230), (17) Credit Link Subsidy scheme for Middle Income group (CLSS for MIG)
(232), (18) CFHL Top Up Loan (235), (19) CFHL Nishchint -Loan for Pensioners(236), (20) Flats
under construction TPA (239), (21) IHL Cash (240), (22) Affordable Housing loan Rural [AHL-R]
(241) (23) Affordable Housing loan-urban[ AHL-U] (242) (24) I-Secure Loan (243). The features
of all the above products are available on our website, http://www.canfinhomes.com.

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III Available Deposit Products
Can Fin Homes has 3 Deposit Schemes
i) Cumulative Deposits: Minimum amount of Deposit accepted is ₹20,000/- and above. The interest
compounded quarterly and added at the end of each financial year or on the date of maturity,
if the deposit is due for payment in between, before the end of financial year.
ii) Fixed Deposits: Minimum amount of Deposit accepted is ₹10 Lakh for payment of monthly
interest. A minimum deposit amount of ₹ 2 lakhs is required for interest payments at
quarterly/half yearly and yearly intervals. For details of Deposits, refer to the website
http://www.canfinhomes.com.
iii) Exempted category of deposits: Inter-corporate deposits as specified from time to time.
iv) The deposits are accepted for fixed period by the Company and it is the responsibility of the
depositor to renew the deposit from time to time. If the deposits are not renewed for 7 years,
the overdue deposit will be transferred to Investor Education & Protection Fund (IEPF) on
completion of 7 years from due date of the deposit and thereafter, the depositor may claim for
refund of the deposit directly from IEPF.

IV. Direct Selling Agent (DSA)

1. The Company has engaged Direct Selling Agents in all branches, authorizing them to source
loan proposals from eligible customers on our behalf. Separate Identity Cards given to them by
the Company.
2. It should be noted that they are not the employees of the Company. They will assist the
applicants by giving clarifications about the Schemes/Charges and other details.

3. For proposals routed through DSA’s. Processing Charges are indicated in the table in para. VIII
Such Processing Fees shall be paid by way of account payee cheque in favour of Can Fin Homes
Ltd.
4. The appraisals of the proposals sourced by the DSA’s will be done by our Company only and
sanction/ rejection of the proposal will be at the sole discretion of the Company. Though the
Legal Scrutiny/ Title verification is done by the Company through the empanelled Advocates,
the Company will not give any warranty of title of the borrower. Once the loan is sanctioned,
the customer is required to Deposit the title deeds in the notified branch/place and visit the
concerned branch of CFHL to execute the EMT/loan documentation.
5. No charges are payable by customers to DSAs. It is to be noted that the DSAs are not authorized
to claim any types of fees/charges directly from the customers. If any deviation is observed,
same may be referred to Branch Manager for further action.

V. Complaint Redressal Mechanism

If the customers have any grievances, they can make a complaint in writing or email addressed to
the concerned Branch Manager, quoting the account number and gist of the complaint. In case the
grievance is not resolved within 15 days, a copy of the complaint/email with acknowledgment may
be forwarded to the Grievance Escalation address: Complaint Redressal Officer, Can Fin Homes
Ltd, 29/1, Sir M N Krishna Rao Road, Basavanagudi, Bangalore. Complaints can also be forwarded
to the email id, ‘grievance.redressal@canfinhomes.com’. In case of any complaint, customers can
also contact the National Housing Bank at the following address and lodge a complaint in online
mode at the link https://grids.nhbonline.org.in OR in offline mode by post, in prescribed format
available at link https://nhb.org.in/citizencharter/Complaint_form.pdf. The complaint can also be
e-mailed at crcell@nhb.org.in.

Complaint Redressal Cell,

Department of Regulation and Supervision,
National Housing Bank
4th Floor, Core – 5A, India Habitat Centre,
New Delhi – 110 003

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The Company has also introduced a system of getting the customer feedback online through a web
based system. As per the system, customer logs into the Customer Portal through Company’s
website and record his/her feedback. The branches will go through such feedback and resolve the
complaints/take necessary action for Resolution of the issues raised by the customer.

VI Customer acceptance policy

i. As per the directions of National Housing Bank guidelines, CFHL would verify the identity of
the customer with proper adherence to customer identification procedure either directly or
through authorized outsourcing agency appointed by the Company, before accepting duly
completed application form for issuing sanction letter to loan borrowers and placement of
deposits. Also CFHL shall conduct due diligence appropriate to the risk profile of the client.
ii. CFHL shall endeavor that no account is opened in anonymous or fictitious/ benami name(s)
and also endeavor that no account is opened for a customer who has a criminal background,
terrorist and all other such persons prohibited by the statutory authorities.
iii. Parameters of risk perceptions are defined in terms of the location of the customer, volume
of turnover, social and financial status etc. which would enable categorization of customers
into low, medium and for high risk customers requiring very high level of monitoring.

Examples of customers requiring higher due diligence include:

a. Non Resident customers,
b. HNIs
c. Trust, charities, NGOs and organizations receiving donations, Companies having
closed share holdings, Firms with sleeping partners,
d. Politically exposed persons of foreign origin.
e. Non face to face customers
iv. Those with dubious reputation as per public information available, etc.
v. Profile for each customer based on risk categorization shall be carried out and such profile
shall contain information relating to the customer’s identity, social/financial status, nature
of business activity etc.
vi. As per the PMLA guidelines, the documentation requirements and other information are
collected from different categories of customers depending on perceived risk and periodical
intervals as may be specified by the NHB/FIUIND/Govt. of India.
vii. No account is opened or closed for a customer where we are unable to apply appropriate
due diligence measures i.e. unable to verify identity and/or obtain documents required as
per the risk categorization due to non-cooperation of the customer or non-reliability of the
data/information furnished to us.
viii. CFHL carries out due diligence while complying with customer acceptance policy and ensure
that its implementation is not too restrictive and must not result in denial of our services
to general public.

Politically exposed persons (PEPs) of foreign origin:

As explained by NHB in its circular dated April 10, 2006, CFHL exercises extra caution while dealing
with politically exposed persons (PEPs). Politically exposed persons are individuals who are or have
been entrusted with prominent public functions in a foreign country, e.g. Heads of States or of
Governments, senior politicians, senior government/judicial/military officers, senior executives of
state-owned corporations, important political party officials, etc. CFHL shall gather all the
necessary information available in the public while establishing the relationship with this category
of people. CFHL verifies the identity of the person and seek information about the sources of funds
before accepting the PEP as a customer. The decision to open an account for PEP should obtain
senior management approval. The above norms may also be applied to the accounts of the family
members or close relatives of PEPs.

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VII Know Your Customer (KYC) Guidelines
The customers shall submit or provide necessary documents or proofs viz., PAN details, proof of
identity, address, educational qualification, employment etc.as and when called for by CFHL as per
the KYC norms, either at the time of applying for the loan and also at any later stage before closure
of the account.
All personal information of customers shall be treated as private and confidential [even when the
customers are no longer customers], other than in the following exceptional cases:
a. If the information is to be given by law
b. If there is a duty towards the public to reveal the information
c. If our interests require us to give the information (for example, to prevent fraud)
d. If the customer permits or consents for revealing the information.
e. If the information is being given to Credit reference agencies
f. The information will be revealed to the credit reference agencies without the consent of the
borrower if the customer has defaulted in repayment of installments. The copy of the
information so revealed may be obtained on demand and payment of necessary fee.

Full details are published in our website www.canfinhomes.com

VIII Schedule of Interest and Charges

1. Interest:

a. The rate of interest for all loans will be decided from time to time. The prime lending rate
of Can Fin Homes Ltd (CFHL Prime Lending Rate) is based upon the cost of funds, tenure
of the loan, borrowing/ market conditions and the risk category of the borrower etc.

b. Variable rate of interest: All upward revisions will be made applicable to all loans (new &
old/existing). Downward revisions will be made applicable to new loans only. The risk rating
of loans shall be done on anniversary basis for all live loans which are in annual resetting
mode for which interest adjustment charges is not applicable. Vide this process the account
will be reviewed and the rate of interest will be reset according to the risk rating of the
borrower.
1. Any revision in rate of interest during the financial year subsequent to the date of
reset will not affect the loan account.
2. However before the anniversary period, in case of further reduction in ROI, the
borrower has the option to get the benefit of the reduced rate after payment of
applicable interest adjustment charges. Such reduced rate will remain in force for
one year from the date of such reset and the account will become due for review
after one year from that date.
3. Whenever the borrower approaches for reduction in ROI before the reset date, the
applicable IAC is 0.50% of the loan outstanding (without any ceiling) plus applicable
GST.

c. Fixed rate of interest: In some loan product, where fixed rate of interest is offered, the
fixed rate of interest is valid upto the period as mentioned in the MITC annexed with the
sanction letter. Thereafter, the rate of interest will be decided by the Company on the basis
cost of funds, tenure of the loan, borrowing/ market conditions and the risk category of the
borrower etc.

d. The rate of interest for each category of the loan and the customer is based on the credit
score of the borrower/s computed at the time of sanction of the loan and the said rate of
interest is also subject to review by the Company at periodical intervals.

e. Card Rate of interest (card rate) for all products will be published in our website/ branch
Notice Board from time to time. As and when changes (upward or downward) in card rates
are effected, then such revised card rates will be published in our website/ branch notice
board from time to time. For all the new loans, card rate will be applicable prospectively
i.e. from the date of Disbursement.

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 f. Interest is charged on daily products of the loan under Daily Diminishing Balances (DDB)
Method only and compounded monthly.

g. Interest is debited to all loan accounts at monthly intervals and at the time of closure, if
the loan is closed before the end of the month.

h. For NPA accounts, interest is chargeable as per Income Recognition & Asset Classification
(IRAC) norms advised by NHB from time to time/ policy of the Company.

i. Presently one-time concession of 0.05% in ROI for initial one year is available for housing
loans (201) for women beneficiaries for loans upto ₹25 lac in metro/urban areas, Naval/
Air Force/ Defense personnel (both in service & after retirement) and physically challenged
persons for housing loans (201) granted on and after 01/08/14.

j. Composite Loans – Rate of interest as applicable to site loan will be charged with
retrospective effect, if the construction does not start within 18 months/ 36 months and
borrower has not fully availed the loan sanctioned. In the case of Composite loans, though
the rate of interest applicable to Housing loans is charged, EMI/PEMI shall be stipulated at
the rate applicable to site loans from the beginning on the amount disbursed for purchase
of site. If, the customer avails the balance of loan for construction of the house, EMI shall
be re-fixed after full disbursement of the loan as applicable to housing loans. The amount
paid in excess in the initial stage shall be treated as advance payment or instalment shall
be re-fixed for the balance amount for the balance period. If the customer fails to avail the
loan and construct the house, the loan shall be converted into a site loan immediately after
completion of 18 months. The differential interest shall be debited to the account without
changing the EMI.

k. As outlined in para I.15 and I.16, whenever there is upward revision in the rate of interest,
the Customer has the option of continuing the same EMI by paying any lump sum amount
equivalent to increased interest liability on account of increase in the rate of interest without
extending the period of the loan.

l. In respect of loans for construction of houses/flats, pre EMI interest at card rates shall be
remitted till scheduled date of completion or actual completion whichever is earlier.

2. Interest Adjustment charges

Whenever downward revision is effected in the rate of interest (card rates) for loans, same is
applicable for new loans to be granted prospectively. In respect of old housing loan borrowers
(availed before 01/04/17) who are willing to avail the benefit of the anniversary risk rating shall
avail the same by getting fresh risk rating done by the branches as per norms, remitting interest
adjustment charges, which shall be 0.50% of the outstanding liability, subject to a maximum of
₹15000/- with applicable GST and signing the link letter.

In respect of other loan accounts (availed after 01/04/17), IAC of 0.50% of the outstanding liability
plus GST shall be applicable if the borrower wants to avail the benefit of any reduction in ROI
before the anniversary period.

Branch Manager/ RO shall permit such conversions subject to rules of the Company advised from
time to time.

3. Penal Interest

i) Charged @24% p.a on the delayed amount for the delayed period only. Such interest will be
charged along with regular interest at monthly intervals and compounded at monthly intervals.

ii) In respect of purchase of properties, non-receipt of sale deed within 30 days from the date of
registration of the property will attract penal interest of 2% on outstanding liability from the
due date for receipt of title deeds till the actual receipt of title/sale deed.

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 iii) If the construction is not completed within 36/60/72 months as the case may be, then the
unavailed limit will be cancelled and penal interest @ 2% to be charged from 37th /61st
/73rdmonth respectively.

4. Processing Charges (PC)

The applicable Processing Charges (PC) are given below:
Table-I
Sl. Names of the Category Proposals received directly Proposals routed through
No Product from customers DSA/Marketing Officers

1 Housing Loans/ S&P 0.50% + GST of the loan 0.75% + GST of the loan
Site Loans/ amount, with a minimum of amount, with a minimum of
composite Rs.5000/- + GST & a maximum Rs.5000/- + GST and no cap on
Loans /CHL/ of Rs.25000/- upper limit.
Flat under
construction/ SENP 0.75% + GST of the loan 1%+ GST of the loan amount,
IHL cash salary amount, with a minimum of with a minimum of Rs.5000/- +
Rs.5000/- + GST & a maximum GST and no cap on upper limit.
of Rs.35000/-
2 AHL-U /AHL R S&P 0.75% + GST of the loan 1.00% + GST of the loan
amount, with a minimum of amount, with a minimum of
Rs.7500/- + GST and no cap on Rs.7500/- + GST and no cap on
upper limit. upper limit.
SENP 1.00% + GST of the loan 1.25% + GST of the loan
amount, with a minimum of amount, with a minimum of
Rs.7500/- + GST and no cap on Rs.7500/- + GST and no cap on
upper limit. upper limit.
3 Mortgage loan S&P 0.75% + GST of loan amount, 1% + GST of loan amount, with
with a minimum of Rs.5000/- a minimum of Rs.5000/- +GST
+GST and no cap on upper and no cap on upper limit.
limit.
SENP 1% + GST of loan amount, with 1.25% + GST of loan amount,
a minimum of Rs.5000/- +GST with a minimum of Rs.5000/-
and no cap on upper limit. +GST and no cap on upper limit.
4 LRR/Flexi LAP S&P 0.75% + GST of loan amount, 1% + GST of loan amount, with
with a minimum of Rs.10000/- a minimum of Rs.10000/- +GST
+GST and no cap on upper and no cap on upper limit.
limit.
SENP 1% + GST of loan amount, with 1.25% + GST of loan amount,
a minimum of Rs.10000/- with a minimum of Rs.10000/-
+GST and no cap on upper +GST and no cap on upper limit.
limit.
5 Personal loan S&P 0.75% + GST of loan amount, DSA/MO not applicable
with a minimum of Rs.5000/-
+GST and no cap on upper
limit.
SENP 1% + GST of loan amount, with DSA/MO not applicable
a minimum of Rs.5000/- +GST
and no cap on upper limit.
6 LCP All 1% + GST of loan amount, with 1.25 % + GST of loan amount,
categories a minimum of Rs.15000/- with a minimum of Rs.15000/-
+GST and no cap on upper +GST and no cap on upper limit.
limit.
7 LCE All 0.25% +GST of loan amount DSA/MO not applicable
categories without any cap

8 Builder’s Builder 1.75 % + GST of loan amount, DSA/MO not applicable

Loan/LOC with a minimum of Rs.

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 50,000/- +GST no cap on
upper limit.

9 CFHL-Nishchint All 0.25% +GST of loan amount DSA/MO not applicable

categories subject to maximum of Rs.
1000/- + GST

10 CFHL –TOPUP All Rs.1000+GST DSA/MO not applicable

categories

11 I-Secure All Nil DSA/MO not applicable

categories

5. Revalidation Charges

Sanction is valid for 30 days from the date of delivery of the sanction communication to the
applicant. ₹500/- will be charged towards revalidation for all loans other than Builder’s loan if
applicant comes forward to revalidate the sanction after the due date.

6. Pre-closure charges: NIL for both Housing Loan and Non-Housing Loan

Not applicable to individual borrowers for term loans (HL and NHL). However, the Company at its
discretion will charge commitment charges on certain category of Non-Housing Loans
(builder/project loan/s), if the sanctioned limit is not utilized as per the sanction terms.

In case of loans sanctioned under the scheme, IHL-Super:

Pre-payment charges (during the fixed tenure period):

 No charges for part payment up to 10% of the opening principal balance for a given financial
year
 Part payment in excess of 10% of the opening principal balance for a given financial year
or full repayment will carry prepayment charges of 2% plus GST.

Pre-closure charges (fixed ROI)

As per the NHB guidelines, the company at its discretion will charge the pre-closure charges at 2%
plus applicable GST where the loan accounts are on fixed interest rate under rural and urban
housing schemes in case the loans are taken over by other banks / financial institutions. However,
no pre-closure charges will be collected if the borrowers close the loans out of their own funds.

7. Commitment charges

At the time of sanctioning Builder/ Project loan, the Credit Dept. shall stipulate drawdown schedule
for disbursement based upon Cash flow statement. In case, the disbursements are not made as
per draw down schedule/ limit not availed, commitment charge of 1% on undrawn portion of
drawdown schedule in Builder Loan category will be collected.

8. Property Valuation Report charges

Applicant should pay charges @1/8% of the assessed value of the property, subject to a maximum
of ₹2500/- + applicable GST, to the Panel Valuers directly towards valuation of property. He should
get the required copies of the reports, including the one for himself.

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9. Project Appraisal Report/ Techno Economic Evaluation report

Applicant should pay the following charges directly to the valuer by way of cheque/ DD, in respect
of projects involving Techno Economic Evaluation/ Project appraisal report by the Panel Valuer:

Loans from ₹1 Crore to ₹3 Crore ₹25000 + GST

Loans for above ₹3 Crore upto ₹5 Crore ₹40,000 + GST
Loans above ₹5 Crore ₹50,000 + GST

The applicant shall directly obtain the copies of valuation report from empanelled Consultant
including one for him.

10. Miscellaneous Charges

Other charges, which are in the nature of reimbursement are tabulated below shall be paid by the
applicant/ borrower:
Table-II
Sl Type of Charge Amount Payment/reimbursement for
No.
1 Documentation charges The actual cost with a Stamping/ franking of agreement/
minimum of ₹100/- stamping of LEDTD for creation of
mortgage

2 Cheque (PDC)Return ₹750/- + GST Each cheque dishonor, recoverable by

Charges debiting the respective loan accounts.

3 ECS/NACH Return ₹750/- + GST Each ECS return, recoverable by

Charges debiting the respective loan accounts.

4 Charges for Retrieval of Actual Courier Towards courier & handling cost of
Documents from charges + ₹300/- per getting the documents from CDSC to the
Centralized Deposit withdrawal + GST branch & returning the same back to
Storage Centers (CDSC) CDSC during the pendency of loan (i.e.
before actual closure of loan)
5 Safe Custody Charges ₹200/- pm + GST Cost of keeping the documents in safe
Of the loan documents in from the date of custody if the customer does not come
respect of closed closure till the date forward to collect the documents after
accounts of actual delivery of loan closure (despite sending our notice)
documents back to within 2 months from the date of loan
customers closure, should be paid by the borrowers
before delivery of the documents back
to them.
6 CERSAI charges for ₹150 + GST As per NHB/ CERSAI guidelines.
registration of charge for
creation/ modification for
loans up to and including
₹5 lac
For registration of charge
₹200 + GST
for creation/ modification
for Loans above ₹5 lac.

For satisfaction of charge

NIL

7. Property Insurance Actual amount of Towards insuring the prime/collateral

charges: premium security.

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 8 Online search CIBIL/ ₹150 (including GST) The charges are collected at the inquiry
Experian/ CERSAI per report stage before the proposal is in warded.
charges per report (including that of co-
applicant/guarantor)
9 Legal Scrutiny Charges Actual with a The charges are to be paid by the
(LSR) Minimum of ₹1100 in borrower to the advocate by way of
all the places cheque through the concerned branch
and a copy of LSR along with receipt to
be given to the borrower.

Encumbrance Certificate The actual cost + To be paid by the borrowers in cash or

minimum OPE recovered by debiting the loan accounts.

Search Report from SRO Actual search fee To be paid by the borrowers in cash or
incurred as per SRO recovered by debiting the loan accounts.
receipts along with
minimum OPE
Certified copies of
documents Actual fee incurred To be paid by the borrowers in cash or
recovered by debiting the loan accounts.

10. Charges for Sale of If realized sale

Property through amount or liability:
recovery agents. 1. Upto 20 Lakhs 3% of the realized sale amount or
liability whichever is less.

2. Above 20 lakhs but ₹ 60,000 + 2.5% of the realized sale

upto ₹ 50 lakhs amount or liability whichever is less,
exceeding ₹ 20 Lakhs.
3. Above ₹ 50 lakhs ₹ 1, 35,000 + 2% of the realized sale
amount or liability whichever is less,
exceeding ₹ 50 Lakhs.
11 Property Inspection ₹300 per inspection To be debited to the loan account & paid
charges of the property, up front for inspection carried out in
(from 2nd inspection construction cases where disbursements
onwards) are made on the basis of progress in
construction

Also inspection of the property [Prime

and/or Collateral] shall be carried out
annually for all the loan accounts which
are outstanding as at end of March in
each year and Rs 300/- as inspection
charges shall be debited centrally, once
in a year till the closure of the loan.
12 Recovery Visit Charges ₹500 per visit for To be debited to the loan account & paid
SMA-2/NPA accounts up front

11. Recovery Charges: (If the account becomes NPA) shall be paid by the borrower
-Table III
Under Civil Law:
a)
a) Registered/ Notice/ ₹50/- + GST per notice, Cost of each Registered Notice is
Through Courier per borrower recoverable from the borrowers.

b)Lawyer’s/Legal Notice ₹500/- + GST per notice, Cost of Legal Notice is recoverable
Charges per account from the borrowers.

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 c)Suit Filing/ Execution
Petition Expenses Actual charges as Cost of Suit filing/Execution Petition
applicable under State expenses should be debited to the
laws borrowers’ loan accounts.

b) Under SARFAESI Act:

a) Demand Notice Actual cost +GST Cost of Demand Notice newspaper

Publication in Paper publication should be recovered from
the borrowers
b) Issue of Possession Actual Cost +GST Cost of issuing Possession Notice
Notice should be recovered from the
borrowers.

c) Taking Possession- Minimum of ₹2,500/- + Towards expenses incurred in

through Enforcement GST & maximum of ₹ connection with Pre-inspection/pre-
Agency- 4,000/- + GST enforcement activities, depending
upon the work/distance of travelling &
i) Pre-inspection/ Pre- actual taxi charges.
enforcement
activities.

ii) For obtaining orders 0.25% of the value of the Cost of obtention of the orders should
from District Magistrate property as per panel be recovered from the borrowers +
/CJM in case of need and valuer’s report/ liability, GST
to assist Authorized whichever is lower, with a
Officer for taking minimum of 2,500/- +
possession GST & max of 25,000/- +
GST.
iii) Assistance in taking a) Symbolic possession –
possession of property, assistance of EA is not to
preparing panchanama be taken.
and other incidental
services required for b)Or actual possession –
publishing possession Upto ₹ 10,000/- + GST Cost of actual possession charges
notice. (depending upon the need should be recovered from the
and work involved) borrowers +GST
All the charges stated above are subject to revision by the Company from time to time.

12. Charges borne by the Company

The Company will bear the charges towards Provisional & final interest/repayment
certificates/statement for Income Tax (IT) purposes, sending SMS alerts & Payments made to
outsourcing agencies towards getting verification reports on applicant’s employment/ residence /
Bank account/ IT statements etc. for the time being. This is subject to revision from time to time
and changes if any, will be published in the Company’s website/ Notice Board of the branch as and
when changes are made.

13. Insurance Cover for Loans

The Insurance cover for life of the borrower/s for the housing loans is not mandatory. However,
such insurance at the option and request of the borrower will be obtained from the approved
Companies at the borrowers cost. The borrower may also take insurance cover for his/her life and
accidental cover at his cost with the approved insurance companies, the cost of which shall be
14
borne by the borrower himself/ herself. Such insurance policy should be assigned in favor of the
Company.
The insurance against the property Mortgaged should be taken at the borrower/s cost. When
insurance is taken, CFHL should be made beneficiary of the policy until the loan is cleared. The
policy should be got renewed by the borrower from time to time and the same to be kept in the
file.

14. System of Remittance/Refund of Processing Charges (PC)

1) Entire Processing Charges should be invariably paid at the time of submitting the application.
However, if the applicant, for some valid reasons, is not paying the entire amount, application can
be submitted by paying not less than 10% of applicable Processing Charges, subject to a minimum
of ₹5,000 + GST (non-refundable) for all loans. Balance/ remaining Processing Charges should be
paid before documentation/first disbursement.

2) After inwarding the proposal and collection of Processing Charges (full or ₹ 5000/- as the case
may be), if the loan is not sanctioned or rejected by us, then the processing charges already
collected less ₹5,000 + GST will be refunded to the applicant. In case minimum of ₹5000/- + GST
collected, the same will not be refunded. If the loan is sanctioned and communicated, but the
applicant does not want to avail the loan and requests for cancellation of limit, then, the actually
collected Processing Charges, less ₹ 6,000/- will be refunded to the customer on the basis of
written request in case of all loans.

15. Refund of Processing Charges under referral scheme

Referral Scheme: Whenever a customer pays processing charges for his loan (either by direct
application or through DSA), then he has the option of claiming refund, either part or in full, of the
processing charges paid by him upon introduction and sanction, disbursement of loans to his
relatives/ friends in our Company. If existing customer (say Mr. A), introduces new loan customers
(say Mr. B, C & so on) to us who subsequently get their loans sanctioned and upon disbursement
of such loan, then existing customer (Mr. A) is eligible for reimbursement of Processing Charges
upto the extent of what he has already remitted to us.

The reimbursement will be @ 0.15% of disbursals in new loan accounts of new customers (i.e. Mr.
B, C and so on) on pro rata basis and such amount will be credited to his loan account at quarterly
intervals. For details, refer branch manager.

IX. Storage of Documents

a. The documents are stored in the fireproof Central Deposit Storage Centres (CDSC) at
Uttarahalli in Bangalore (for South zone branches in Karnataka, Kerala and Tamil Nadu),
Ramachandrapuram in Hyderabad (AP, Telangana, East and West zone branches) and
Gurgaon in Haryana (for North zone branches)
b. Upon closure of loan, the documents will be returned. The customers will be duly intimated
by the branches to collect back the documents within 15 days of closure of the loan. If the
documents are urgently required (say within 4 days), then actual courier charges (upto
₹300/- + GST) has to be remitted.
c. If the borrower requests for copies of any property documents during pendency of the loan,
a minimum of 15 days’ notice should be given to the concerned branch for retrieval of the
requested documents, by paying the actual courier charges +₹300/- + GST.
d. If the documents are not taken delivery by borrower, then safe custody charges @₹200/-
p.m.+ GST will be levied while delivering the documents
e. The title deeds deposited by the borrower/s or guarantor/s for creation of mortgage will be
returned to the said persons or their legal heirs only on closure of the entire loan liabilities
of the borrowers /guarantors due under the loan/s availed directly or indirectly against the
security of such properties.
f. The Company takes proper care and caution while dealing with the property documents
submitted by the borrower. If for any reasons, the documents are lost or damaged for the
reasons beyond the control of the Company and the Company is not able to produce such

15
 documents, the Company will arrange for providing certified copies of such documents as
permissible under Law/ Policy of the Company.

X Application of Code

1. The Code is applicable under normal operating environment except in the event of any force
majeure.
2. The code is based on the ethical principles of integrity and transparency and all actions and
dealing shall follow the spirit of the Code.

Sd.
Place: Bangalore Shamila M
Date: 31/08/2020 General Manager

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