Loan Policy : Muthoot Vehicle & Asset Finance Ltd( MVFL) The company has adopted simplified lending

norms, transparent terms, easy documentation procedures and speedy disposal of applications as its USP. Who Can Apply: Citizens in the age group of 18 yrs to 60 yrs permanently residing within 20km radius of our branches located in the state of Kerala having regular source of income, reasonable means with social acceptability are eligible to apply for loans. The applicants are required to disclose their family details, means, assets and liabilities etc. at the time of application. Any wrong disclosures or concealment of material information will go against the applicant and may result in rejecting of application or recalling advances if already sanctioned. The loan applications received will be duly acknowledged by branches and the probable date of sanction will be communicated in the acknowledgement. Processing: The company assesses credit worthiness of the borrower/guarantor and evaluates their financial requirements through field verification of the borrower/ guarantor and verification of assets within a reasonable period of submission of application All vehicle loan applications will attract processing charge of Rs.700/- and other loans a service charge of 1%. Guarantor: The company may require the personal guarantee of third party having good means and income source for sanctioning loans to the applicant. Details of property documents of borrower/guarantor also to be provided for processing of loans. Documentation: The following documents (as appropriate) are to be submitted along with loan applications: Recent photographs of Borrower/ Guarantor, Photo ID proof, Address proof, Latest land tax receipt, Copy of title deeds, Salary certificates, I.T returns, Bank statements. The borrowers and guarantors are required to execute hypothecation agreements and other security documents for consideration of loan at the branch premises. A documentation charge of Rs.1000/- is payable by the applicant per loan. The security documents will be executed in two sets, one of which will be given to the applicant for records.

For vehicle loans, company additionally secures the loan by getting its lien recorded on the Registration Certificates of vehicle. The vehicles financed are to be insured with lien of company for its full value. The company will advise sanction of loans and the terms and conditions of sanction by a Sanction Letter which will be acknowledged by the borrower. The borrower shall comply with the sanction terms during the pendancy of loan. Any change in the terms of sanction proposed later on will be duly notified to borrower and will have only prospective application. Repayment: Repayment period of loan normally varies from 36 months to 60 months depending on the type of loan. Repayment schedule of loan will be provided to the borrower as per period of repayment opted and the borrowers are required to pay the instalments on due dates assigned by means of post dated cheques/ cash. The various due dates available for repayment are 7th, 15 th, 19th and 25th of every month. One instalment has to be paid ahead at the time of disbursement. Any default or delay in repayment will attract penal interest at 3% per month for the days of delay on defaulted instalments. For prompt repayment company provides repayment rebate to customers every year. Pre-closure: for loans closed before due date a pre-closure charges of 1% on the outstanding balance will have to be paid. The company shall release all security documents such as property deeds, deposit receipts, assigned policies, shares, debentures etc soon after closure of the loan dues in full. In case of any right of set off proposed to be exercised by the company against the securities the borrowers shall be given notice with the claim particulars. A termination charge of Rs.200/- is payable by borrower for release of securities. Interest rates: The companys lending rates are related to its liability costs and operational charges. A reasonable spread of 3 to 4% is loaded on the liability cost while fixing lending rates. Besides the market rates and Bank rates are also factored in while fixing lending rates. The lending rates range currently from 17.5% to 25% IRR depending on the type and period of loans and shall be subject to changes depending on RBI policy rates/ market conditions and cost of liability. As per industrial practice the rates are quoted in flat rates and servicing of loans made through equated monthly instalments. Repossession: Repossession of vehicles of defaulted borrowers will be as per conditions agreed upon. The company encourages voluntary surrender of vehicles as a matter of policy and refrains from use of force or muscle power for recovery of loans. The company and its employees will stay away from unnecessary interference in the affairs of borrower except for the purposes provided in the loan agreement. Any sale/auction of repossessed vehicle shall be only after giving a final chance to borrower for repayment of loan and return of vehicle. The sale will be through public auction.

Transfer/ takeover of loans: Any request of borrower to transfer the borrowal account will be duly considered and the transfer proceedings shall be transparent and in terms of contractual terms. Any objection on transfers will be conveyed within a period of 21 days from the date of receipt of transfer request.

Grievance Redressal: The company has a well defined grievances redressal system for addressing the customer complaints at various stages. Any deviations from the loan policy guidelines and transactions may be taken up with Branch-in-charge who will attend to the needs of customers. All branches have been provided with complaint books wherein the customers can record their complaints. All complaints will be redressed within a maximum period of three days in the normal course. Wherever the branches are unable to resolve the complaint, the customer will be suitably advised the reasons and course of action initiated. The customer can also approach the Nodal Officer( Greivance Redressal Cell),Corporate office, first Floor, Cochin Dental Clinic building, Market Road (towards Kombara), Kochi-682018 or by e-mail to: mvfl@muthootgroup.com for resolving their complaints. All complaints will be disposed within a maximum period of 15 days.

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