SBI GLOBAL FACTORS LIMITED

FAIR PRACTICES CODE

(i) Applications for availing Factoring services and their processing

(a) The Client Application Form of SBI Global Factors Limited (hereinafter referred to as “SBIGFL”) (for availing of the factoring limit by SBIGFL’s Borrower) includes the complete information which may affect the interest of the Borrower, so as to enable both SBIGFL and its Borrower to make its meaningful comparison with the similar terms and conditions offered by other Non Banking Finance Companies (NBFCs). It will also enable the Borrowers to take an informed decision based on the said comparison.

(b) The Client Application Form of SBIGFL (for availing of the factoring limit by SBIGFL’s Borrower) also indicates the list of documents required to be submitted by the Borrowers along with the Application.

(c) SBIGFL ordinarily has a mechanism of giving an acknowledgement for receipt of Application from its Borrower for availing Factoring limit. Also, the said acknowledgement will contain the detailed time frame within which various activities right from making the Application by the Borrower till the disposal of the same (viz. (i) Principle offer by SBIGFL to the Client, (ii) Preparation and submission of Client field survey by SBIGFL, (iii) pre sanction due diligence of Client by SBIGFL, and (iv) Remittance of Funds by SBIGFL to the Client) will be completed by SBIGFL. SBIGFL would inform the Borrower about its decision within 15 days from the date of receipt of Field Survey Report and all other required information in full.

(ii) Loan appraisal and terms/ conditions

SBIGFL conveys in writing to the Borrower by way of a sanction letter, the amount of limit sanctioned along with all the terms and conditions thereof, including therein the annualized rate of discount/ interest and method of application, and keep the acceptance of these terms and conditions by the Borrowers on SBIGFL’s record.

(iii) Disbursement of loans including changes in terms and conditions

(a) SBIGFL will give Notice to all its Borrowers, of any change in the terms and conditions of the Factoring, including disbursement schedule, interest/ discount rates, service charges, prepayment charges etc.
SBIGFL will also ensure that changes in discount/ interest rates and charges are effected only prospectively. Separate information in writing regarding the same would be sent to the Clients.

(b) Decision to recall/ accelerate payment or performance under the Factoring Agreement will be in consonance with the Agreement.

(c) SBIGFL will release all securities of its Borrower only on repayment of all dues by such Borrower, or only on realization of the outstanding amount of the Borrower’s availed limit, subject to any legitimate right or lien for any other claim which SBIGFL may have against its Borrower.

If such right of set off is to be exercised, the Borrower will be given notice about the same by SBIGFL with full particulars about the remaining claims and conditions under which SBIGFL will be entitled to retain the securities till the relevant claim is settled or paid by the Borrower.

(iv) General

(a) SBIGFL does not interfere in the affairs of its Borrower except for the purpose provided in the terms and conditions of the Factoring Agreement (unless new information, not earlier disclosed by the Borrower, which may come to the notice of SBIGFL).

(b) In case of receipt of request by SBIGFL from the Borrower for transfer of Borrowal account, the consent or otherwise i.e. Objection of SBIGFL, if any, is generally conveyed to such Borrower within 21 days from the date of receipt of the Borrower’s request. Such transfer will be as per transparent contractual terms in consonance with all the applicable laws.

(c) In the matter of recovery of outstanding dues of its Borrower, SBIGFL does not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans etc.

(v) Grievance Redressal Mechanism

Clients and others who have grievances in respect of decisions of SBIGFL’s functionaries may address their grievances to Chief Operating Officer, at redressal@sbiglobal.in

The Board will also periodically review the compliance of this Fair Practices Code and the functioning of the grievances redressal mechanism at various levels of management. A consolidated report of such reviews will be submitted to the Board at quarterly intervals.

(vi)

This Fair Practices Code will always be available on the website of SBIGFL - sbiglobal.in, for the information of its Borrowers and various stakeholders. Any enhancement(s) or change(s) in the scope of this code will be uploaded from time to time in future on the said website.