The following terms and conditions (“Terms”) establish the framework for your association with Shubharambh capital Finance private Limited/Company (“we,” “us”, “SCFPL”). They outline the conditions under which you will engage in the Facility (defined below) and govern your relationship with us.

Where we have published/executed a document which is referred to within these Terms (such as a loan agreement), the content of said document shall also form part of these Terms and shall be deemed as being accepted by you. In cases of discrepancies or contradictions between these Terms and a referenced document, the determinations of SCFPL will be conclusive. It is essential to carefully review these Terms and the loan agreement, ensuring that crucial terms, including interest rates, repayment terms, security, prepayment conditions, etc., are explicitly defined before executing the agreement.

All individual applicants, co-applicants, and guarantor(s) collectively referred to as “the Applicant(s)”—a term that, as the subject or context may admit or require, encompasses any or all of the Applicant/s, Borrower/s, and/or Guarantors—intending to access financial assistance across various loan types, including Commercial Vehicle Loan, Car Loan, Tractor Loan, Construction Equipment Loan, Two Wheeler Loan, MSME Loan, Purchase finance loan, Inventory Loan, Channel finance Loan, Business Loan, Home Renovation-Mortgage Loan, Insurance Loan, Personal Loan (the “Facility”), from Shubharambh Capital Finance Private Limited (“SCFPL” or “Company”) for the specified purpose in the loan application form, sanction letter, and/or loan Agreement (“Purpose”), must provide complete details as required by SCFPL and submit the same to SCFPL for applying for the Facility.

SCFPL retains the exclusive right, at its sole and absolute discretion, to either reject or approve any application submitted by the Applicant(s) (“Application Form”) for the Facility. In the case of rejection, SCFPL is not obligated to provide the Applicant(s) with the reason for such decision. SCFPL will review the application form and any additional documents submitted by the Applicant(s). If deemed satisfactory, SCFPL will issue a sanction letter outlining the key terms and conditions for the Facility (“Sanction Letter”). Subsequently, SCFPL will execute a formal loan agreement with the Applicant for accessing the Facility (“Loan Agreement”). The Application Form, Sanction Letter, Loan Agreement, and any other documents executed concerning the Facility collectively constitute the Transaction Documents.

II. At the time of loan application:

The Applicant wishes to apply for a loan as specified in the form. The Applicant affirms that all information provided in this application form is accurate, genuine and complete in all aspects, in accordance with their valid government identity proof. This information can be utilized by SCFPL as needed under the prevailing law. The Applicant declares that no information has been withheld or suppressed in any form. The Applicant acknowledges that their loan will be govern by the current terms and conditions of the Company, which may be revised periodically. The Applicant certifies their status as a citizen(s) of India. The Applicant acknowledges that the Company retains the right to keep any documents submitted through the provided link or submitted physically and will not return them. It is understood that the Company holds sole discretion in approving or rejecting the loan application and may do so without providing reasons. The Applicant acknowledges and waives the right to appeal against the Company’s decision. The Applicant grants authorization to the Company and/or its associates/subsidiaries/affiliates to verify information related to the Applicant’s office/residence, family members, employer, banker, or any other acts deemed necessary for C KYC/CERSAI, NeSL, CIC, RBI, and/or any regulatory/statutory authority as per the prevailing law. The Applicant acknowledges and consents to the understanding that processing fees and documentation charges are non-refundable in the event of the Company rejecting the application for any reason or if the Applicant chooses to withdraw the same.

The Applicant is cognizant that the loan application processing necessitates the submission of the following documents:

●       Proof of identity and address: Passport/Voter ID/Driving license/Aadhar Card or proof of possession of Aadhar (voluntarily).

●       Latest photographs of all applicants and the guarantor.

●       Date of birth proof: Driving License/PAN Card/Passport copy/Birth certificate/10th mark sheet bearing the date of birth.

●       Bank statements: Latest statements/bank passbook (updated within 10 days).

●       Documents pertaining to income and expenditure, along with any documentation related to other loans if taken.

●       Any additional documents essential for credit assessment, as required by the Company.

The Applicant affirms that they do not hold the Company or its agent(s) accountable for the delivery, color, make, or performance of the assets applied for under the application. The Applicant may receive information, promotions, etc., for marketing purposes via Telephone/SMS/mobile/WhatsApp/emails from the Company and its agents. The Applicant comprehends that the interest rate applied will be determined based on the current interest rate, the risk profile of the Applicant as evaluated by the Company, loan product, etc., and may differ from one customer to another. For additional information, the Applicant should consult the interest rate model and policy available on the Company’s website. The Applicant hereby affirms and declares that they are not related to any of the directors of the Company, nor are they relatives as defined under the Companies Act, 2013. The Applicant affirms and verifies that there are no ongoing insolvency proceedings, suits for the recovery of outstanding dues, or any legal actions for the attachment of assets or properties initiated or pending against them. Furthermore, the Applicant asserts that they have never been declared insolvent by any court or other authorities. The Applicant additionally states that no actions such as winding up, dissolution, administration, reorganization, or the appointment of a receiver, trustee, or a similar officer have been initiated or any proceedings filed against them.

The Applicant hereby affirms and solemnly undertakes that the loan obtained will be utilized for the purposes specified to the Company. The Applicant also confirms that the loan will not be employed for any antisocial activities, investment in stocks and shares, speculative activities, or any purpose associated with capital market activities. The Applicant additionally affirms that there are no litigations or insolvency proceedings filed or pending against them by any company, individual, or other entities. The Applicant has no objection to the Company sending promotional calls, SMS, or WhatsApp messages to their mobile number/email. The Applicant hereby declares that the details provided above are true and correct to the best of their knowledge and belief. The Applicant undertakes to promptly inform the Company of any changes therein. If any of the information or details provided above is discovered to be false, untrue, misleading, or misrepresenting, the Applicant acknowledges that they will be held responsible for it, and the Company may take appropriate action as deemed necessary. The Applicant gives consent to receive information from the central KYC registry via SMS/email on the registered email address/mobile number provided above. The Applicant confirms the receipt of the acknowledgment for the submission of the loan application. The Applicant is aware that the loan application will be processed within 15 days after the submission of the required documents.

 

III. KEY TERMS AND CONDITIONS PERTAINING TO THE FACILITY.

(a) The Applicant shall enter into a formal agreement related to the Facility. In this agreement, the Applicant  shall confirm and bind itself to various terms and conditions concerning the Facility, including but not limited to disbursement of the facility, interest and amortization, prepayment, fees and operating expenses, taxes, security and insurance, increased cost, cross liability, covenants and representations, event of default, set-off, indemnity, disclosure of information, confidentiality, etc. The Sanction Letter is integral to this Agreement, and all terms and conditions regarding the Facility outlined in the Sanction Letter are considered terms and conditions within this Agreement. Nevertheless, in case of any conflict between the terms of the Sanction Letter and this Agreement, the terms of this Agreement will take precedence. In the case of any disagreement or dispute between the Company and the Borrower concerning the significance or reasonableness of any matter, the Company’s opinion on materiality shall be deemed final and binding on the Borrower.

(b) The processing fee and other charges specified in the Transaction Documents related to the Facility are non-refundable. These charges must be paid on or before the due date as outlined in the Sanction Letter and/or Loan Agreement.

(c) The interest at the rate as prescribed in respective transaction documents executed with the parties to the facility shall be charged on the overdue amount for payment delayed beyond the due date of the installment.

(d) The change in interest rate and charges shall become effective prospectively from each date of such change or at a later date as agreed by SCFPL.

(e) Upon the Company’s request, the Borrower(s) shall procure a loan insurance policy to safeguard the loan throughout the duration of this Agreement.

(f) Disbursement: The disbursement of the Facility shall be subject to the performance by the Borrower(s) of all the Conditions Precedent as stipulated in the respective facility documents. SCFPL will make all payments to the Borrower through NEFT/RTGS, or by cheques/demand drafts or any other mutually agreed-upon mode at the time of executing the transaction documents. The Borrower(s) shall be solely responsible for any collection charges associated with all such payments. Disbursement shall be deemed to have been made to the Borrower(s) on the date of disbursement by NEFT/ RTGS or the date of the cheque as the case may be. If the Borrower cancels the loan or if deficiencies are identified in the details submitted by the Borrower, the Company reserves the right to impose cancellation charges on the Borrower to cover the costs incurred by the Company. Regardless of the provisions in this Agreement, the Company, without compromising its right to receive the installment(s) or EMI payable by the Borrower as outlined in this Agreement, has the authority to withhold the disbursal of a certain percentage of the Loan until the completion of post-disbursement documents (PDD) to the satisfaction of the Company. The Company has the right to subtract charges, including but not limited to insurance premiums, stamp duty, etc., that are paid or are to be paid by the Company on behalf of the Borrower(s) from the Loan amount to be disbursed. The Company, at its discretion, may choose to waive or offset any processing fees received from the Borrower against the applicable cancellation charges.

(g) As a prerequisite for the provision of the Facility, the Borrower(s) hereby agree and consent that, in the event of default in the repayment of any of the Outstanding Amounts, the Company and/or RBI have an absolute right to disclose and furnish information to Credit Information Companies (CIC), CKYC, CERSAI, NeSL, CRILC, and other agencies authorized by regulatory/statutory bodies, labeling the Borrower(s) as a defaulter in a manner and through a medium that the Company or RBI, in their absolute discretion, deem appropriate. Notwithstanding the above, the Borrower/Co-Borrower acknowledges that, as a precondition for the grant of the Facility, the Company requires the Borrower’s/Co-Borrower’s consent for the disclosure of information and data related to the Borrower(s), the Facility availed or to be availed by the Borrower(s), obligations assured or to be assured by the Borrower(s) in relation thereto, and any default committed by the Borrower(s) in discharging thereof. Without prejudice to the aforementioned, the Borrower(s) hereby agrees and gives consent:

1.  To disclose such information for the purposes of credit reference checks, verification, assignment, etc., and disclose any information/documents relating to the Borrowers (pertaining to the Facility availed by the Borrower) to any third party appointed by it. The Borrowers further authorize the Company to disclose said information/documents to RBI, income tax authorities, credit bureaus, third parties, credit rating agencies, databanks, corporates, banks, financial institutions, or any other government or regulatory authorities, statutory authorities, quasi-judicial authorities.
2. To publicly disclose the name of the Borrower(s) and/or the names of its Directors as defaulters, with or without photographs, in any local/regional/national newspaper/magazine, etc., and/or through electronic mediums, including publication on the website, etc., and/or in such other manner and through such other medium as the Company/RBI may, in their absolute discretion, deem fit.
3. The Company is authorized to seek and/or receive any information it deems necessary concerning the Facility and/or the Borrower(s) from any source, person, or entity to whom the Borrower(s) hereby authorizes to provide such information.
4. The Company will register the details of a Borrower, in the case of a Borrower being a non-profit organization, on the DARPAN Portal of NITI Aayog if not already registered. It will maintain such registration records for a period of five years after the conclusion of the business relationship between the Borrower and the Company or the closure of the account, whichever is later.

The Borrower(s) affirms that, for the purposes of credit reference checks, verification, etc., the Company may disclose any information/documents related to the Borrower(s) (pertaining to the Facility availed by the Borrower(s)) to any third party appointed by it.

(h) Return/Destruction of SPDCs/PDCs: SCFPL will promptly return or destroy old SPDCs/PDCs received from the Applicant(s) or any parties to the Loan Agreement and currently held in the custody of SCFPL under the following conditions:

1) When the Applicant’s relationship with SCFPL is terminated (e.g., due to loan foreclosure, loan repayment, loan maturity, etc.) or, (2) When the NACH of the Applicant is activated.  There shall not be any liability on SCFPL to return the SPDCs/ PDCs obtained from the customer as a part of the facility obtained by the Customer from SCFPL.

(i) The Applicant is responsible for ensuring that all payments made through digital payment platforms are carried out from their own account, adhering to the prescribed Anti-Money Laundering (AML) norms. If a third party makes the repayment, it is the sole responsibility of the Applicant or parties to the loan agreement to inform SCFPL promptly and undertake all necessary documentation formalities as requested by SCFPL.

(j) Repayment: The loan is scheduled to be repaid in installments as mutually agreed upon in the transaction documents throughout the loan tenure. The commencement of installment / interest repayment begins on a date specified in the Sanction Letter. The installment amount includes both principal and interest and is payable as outlined in the Transaction Documents. Consequently, the Applicant is required to ensure:

●       Ensure there are adequate funds in the designated account 2-3 days before the installment due date. Additionally, the Applicant should refrain from (a) issuing stop payment instructions for any cheque designated for installment payment or closing/changing the bank account from which the repayment instruments are drawn; and (b) canceling or altering any payment arrangement, unless it is specifically required by SCFPL.

(k) Security: The Applicant(s) shall maintain in favour of SCFPL, a valid and enforceable first and exclusive security interest on the property and all proceeds receivable by the Borrower(s) at any point of time, or any other right or interest arising from or in connection with the property. All the security documents of the Borrower(s) shall be deposited with SCFPL and it shall have paramount rights/lien over such documents. The Parties agree and confirm that the Company may, at its sole discretion, till the entire repayment of the amount due, withhold the no objection certificate, security-related document or the like in case either loan(s)/facility (ies) is closed by the Borrower. Any Security(ies) furnished by the Borrower(s) for the Loan Agreement executed shall also be collateral for any other obligations owing by the Borrower(s) to SCFPL. 

(l) In accordance with the applicable law(s) as amended or modified from time to time, where the borrower is a  company or LLP, the Borrower shall ensure registration of charges with the ROC within requisite timelines.

(m) Disclosurer: (i) SCFPL has the authority to periodically disclose any information pertaining to the loan to any credit bureau (existing or future) sanctioned by the Government of India and/or RBI, without providing prior notice to the Borrower(s). SCFPL is empowered to conduct inquiries with any Credit Bureau to obtain the applicant’s Credit Information Report. The terms and conditions outlined herein are subject to change without prior notice. The Applicant acknowledges that SCFPL is authorized to share/disclose information: (a) concerning the Applicant, including details about any defaults in fulfilling obligations or other relevant information; (b) with credit bureaus/credit reference agencies. These entities may, in turn, provide processed information, data, or products to banks, financial institutions, and other credit grantors. SCFPL also furnishes information regarding the applicant’s credit history and repayment record to a credit information company specifically authorized by the RBI, as per the provisions of the Credit Information Companies (Regulation) Act, 2005. (ii) The Borrower expressly grants consent to SCFPL for the disclosure/submission of ‘financial information’ as defined in Section 3(13) of the Insolvency and Bankruptcy Code, 2016 (‘Code’), in connection with the Credit/Financial facilities obtained from SCFPL, to any ‘Information Utility’ (‘IU’) as defined in Section 3(21) of the Code. This is done in accordance with the relevant Regulations framed under the Code, and directions issued by the RBI to NBFCs, and the Borrower agrees to promptly authenticate the ‘financial information’ submitted by SCFPL when requested by the concerned ‘IU’.

(n) In the event of any default under these Terms and/or the terms of the Agreement (whether or not a demand for repayment is actually made), the SCFPL, through its officers, agents, or nominees, reserves the right (without prejudicing its rights under this Agreement) to take one or more of the following actions at any time thereafter, without the specific intervention of a court or any court order:

1. with a notice period of 15 days/without any notice and assigning any reason and attire risk at expense of the  Borrower and if necessary as an attorney and in the name of the Borrower to take charge and/or possession of, seizure,  recover, appoint a receiver of and remove the hypothecated asset. SCFPL will be within its rights to use Tow-van to carry away the Asset/and or,
2. Enter any location or premises where the hypothecated asset is kept or stored and inspect, Value or insure the same all at the Borrower’s costs and expenses, and/or,
3. With advance notice through any specified mode of communication, SCFPL may sell the hypothecated asset by auction, private contract, or tender, dispatch or consign it for realization, or otherwise dispose of or handle the asset in a manner deemed appropriate by SCFPL,
4. Take possession of the collateral security and exercise power  to conduct an auction of the collateral to realize the outstanding amount due to to SCFPL.
5. Despite the aforementioned, SCFPL, upon the occurrence of any of the following events, has the right to repossess the asset without giving any notice or intimation to the Borrower:

1.       If the Borrower or any other party engages in fraudulent activities related to the asset and/or loan under this agreement, which, in the opinion of SCFPL, is detrimental to its interests,
2.       In the event of the asset being sold to a third party.
3.       If the Borrower has indicated a voluntary willingness to surrender possession of the asset.
4.        If there is reasonable apprehension to SCFPL or its officers/ agents that such notice may defeat the taking of possession of the asset due to any foul play or forcible resistance from the part of the Borrower/ Guarantor.
5.       If the asset is used in illegal activities.

6. SCFPL will offer the Borrower one last opportunity to settle all outstanding amounts before proceeding with the sale/auction of the hypothecated asset, except in instances where the sale/auction is mandated by proceedings before a judicial, quasi-judicial, or governmental authority or arbitrator.
7. Upon the full clearance of all outstanding amounts and other dues owed to SCFPL to its satisfaction, or as mutually agreed by both parties, SCFPL will return the assets to the Borrower(s).  If satisfied with the genuineness of the Borrower’s inability to pay the EMI as per the repayment Schedule III which resulted in the repossession of the asset, SCFPL may at its discretion consider handing over the Assets after receiving the EMI in arrears. However, the same would be subject to SCFPL being convinced of the arrangements made by the Borrower(s) to ensure timely repayment of EMI in future. 

o) Know Your Customer/Due Diligence Guidelines: In adherence to SCFPL policy, the submission of Know Your Customer (KYC) documents, along with other required documentation, is necessary when applying for a loan or upon request by SCFPL. The Borrower(s) is well-informed about the KYC requirements mandated for SCFPL by the RBI. The Borrower(s) affirms that the information, clarifications, documents, and signatures provided pertaining to identity, address, authorized signatory, board resolution, PAN, and all other relevant details are accurate and truthful. The Borrower(s) further asserts that the transactions and associated matters are genuine and compliant with the law. The Borrower(s) additionally verifies that it has revealed all necessary facts and information to adhere to and comply with the provisions outlined in the KYC Policy. The Borrower hereby agrees to furnish the Company with any supplementary information deemed necessary by the Company, even if it is not explicitly specified in the internal KYC Policy of the Company. SCFPL reserve the right to  recall the Facility, enforce the Security and guarantees, if any, and appropriate proceeds thereof towards the outstanding and recover the balance from the Borrower(s), if any or close the account in case the required documents are not provided by the Borrower(s) to SCFPL.  The Company shall advise the customers that in order to comply with the PML Rules, in case of any update in the documents submitted by the Borrower at the time of establishment of a business relationship / account-based relationship and thereafter, as necessary; customers shall submit to the Company the update of such documents. This shall be done at the earliest but not later than 30 days of the update to the documents for the purpose of updating the records at Company’s the end. The Company shall register the details of a Borrower, in case of Borrower is a non-profit organisation, on the DARPAN Portal of  NITI Aayog, if not already registered, and maintain such registration records for a period of five years after the business relationship between the Borrower and the Company has ended or the account has been closed, whichever is later.  

(p) The Borrower shall keep and maintain in accordance with good business practice and Applicable Laws, all statutory books, books of accounts, bank statements/passbooks and other records of the Borrower and in particular,  maintain records showing the operations and financial conditions of the Borrower and such records shall be open to examination by the Lender and/or its authorized representatives and the Borrowers shall if so required by the  Lender, furnish to the Lender at such intervals as the Lender may request a schedule or copy of all entries which shall have been made in the said registers. The register shall clearly indicate which of the assets have been hypothecated/ mortgaged/pledged or otherwise charged to the Lender or to any other person/ entity.  

(q) Applicable Law and Jurisdiction: All documents associated with the Facility will be governed by and interpreted in accordance with the laws of India. The parties involved explicitly consent that any disputes arising from and/or related to the Transaction Documents, including any collateral documents, will be subject to the exclusive jurisdiction of a competent court as specified in the respective transaction documents.

(r) Resolution of Disputes: In the event of any dispute arising directly or indirectly between the parties, the parties acknowledge that it shall be referred to or settled in accordance with the terms and conditions outlined in the Dispute Settlement Mechanism, as separately agreed and executed in writing between the parties, where applicable.  In any other circumstance, all matters, questions, disputes, default, difference and or claims arising out of and/or concerning and/or in connection and/or in consequence of breaches, termination or invalidity thereof,  whether or not obligations of either or both parties be subsisting at the time of such dispute and whether or not the transaction documents have been terminated or purported to the terminated or completed shall be settled by arbitration in accordance with the provision of Arbitration and Conciliation Act 1996 or any statutory amendment  thereof which shall be presided over by an arbitrator. SCFPL shall nominate the arbitrator and intimate Borrower(s).  If no counter proposal is received from Borrower(s) within 7 (seven) days from the date of intimation, then the arbitrator nominated by SCFPL shall be deemed to be accepted by Borrower(s) and becomes final. The language to be used in the arbitral proceedings shall be English and the award of the arbitrator shall be final and binding on parties. The seat of arbitration shall be as specified in the respective transaction document.

(s) Fees, Charges, Costs, and Claims: The Borrower(s) shall be solely responsible for bearing all costs, including legal fees, charges, expenses, applicable taxes, valuation charges, CIC charges, CERSAI charges, duties (including stamp duties), registration charges, or any other charges associated with the Transaction Documents, any document executed in pursuance thereof, and the creation, enforcement, realization, or attempted realization of any security, including taking possession, maintaining storage, and selling of any asset. The Borrower(s) is obligated to reimburse the actual expenses to SCFPL within 24 hours of SCFPL’s demand. Additionally, SCFPL has the right to recover from the Borrower(s) and Guarantor any other charges, costs incurred, or claims suffered in connection with the Facility. This includes expenses related to the execution, stamping of the Loan Agreement, and any other documentation or security creation pursuant to the Transaction Documents. If at any time hereafter it is found or required that any extra stamp duty is payable on any of the Transaction Documents and/or if it is ascertained that stamp duty at a rate higher than the duty presently paid on said Transaction Documents is payable/required to be paid, then the Borrower(s) shall immediately pay the same with penalty and interest (if any). Upon failure to pay the same, such amount shall form part of the amount due under the Loan Agreement.

(t) Conditions Precedent: SCFPL will disburse any amount under the Facility upon the satisfaction of the following conditions:

1. The Borrower(s) meeting SCFPL’s creditworthiness criteria. SCFPL has the right to conduct market inquiries or Credit Bureau checks as deemed appropriate and may request the Borrower(s) to provide necessary credentials in this regard.
2. The Borrower(s) are adhering to all the terms and conditions specified in the Transaction Documents, and there is no default or breach under the Sanction Letter, Loan Agreement, or any circumstance that would make it unlikely for the Borrower(s) to fulfill their obligations under the Transaction Documents.
3.  In relation to the Borrower(s), absence of any pending, ongoing or threatened proceedings which, if adversely determined, may have an adverse effect on: (i) the ability of the Borrower(s) to comply with the Facility Documents, or (ii) the interests of SCFPL. 
4.  Execution, filing, registration and delivery, by the Borrower(s), of all Facility Documents in the form, manner and substance acceptable to SCFPL.
5. If deemed necessary by SCFPL or as mandated by any applicable law, the Borrower(s) must provide evidence acceptable to SCFPL to demonstrate: (i) the utilization of proceeds from any previous disbursements under the Facility, and (ii) that the disbursement is necessary for and will be used exclusively for the purpose for which the Facility is sanctioned.
6. To access the Facility from SCFPL, the Applicant guarantees to SCFPL that they have adhered to all the provisions of the MSME Act applicable to them. Up to the present moment, the Applicant affirms that they have not directly or indirectly violated any provisions under the applicable law, statute, regulation, or any judgment or decree to which the Applicant and/or the business and/or its undertaking are subject.
7. The Borrower shall notify SCFPL of any change, including but not limited to the following, that occurred, between the date of loan application and the date of disbursement of Facility, and even otherwise, within 15 (fifteen) days of such change.

1.       Make any change in the residential and official status of the Applicant or occupation/ business of the Applicant or in the details of the relatives in the Applicant’s entity or any adverse circumstances connected with the financial position of the Applicant and/or any adverse change with regard to the security or title thereto (however unimportant the Applicant may consider the same);  
2.       Make any change in the constitution, management or existing ownership, shareholding pattern or control or share capital of the Applicant. 

(u) Non-cooperative borrowers:

1. The Borrower(s) commits to complete cooperation and adherence to the terms and conditions outlined in the Loan Agreement and other related documents, in alignment with the Facility obtained from SCFPL. If, however, the Borrower(s) fails to cooperate  and fulfill the obligations pursuant to the terms and conditions under the Loan Agreement, SCFPL shall deem the Borrower(s) as Non Co-operative Borrower.
2. If the Borrower(s) fails to repay the outstanding dues under the Facility even after repeated reminders (written/verbal) from SCFPL, and the delinquency persists for more than 90 days, SCFPL will categorize such non-paying Borrower(s) as Non-Cooperative Borrower in the SCFPL’s database. SCFPL will issue a written notice on 60 Days Past Due (DPD) in the Borrower’s account to delinquent Borrower(s) through physical or digital means. This notice will request the delinquent Borrower(s) to provide justification for not responding adequately to the prior reminders before being categorized as a Non-Cooperative Borrower. Upon receiving the notice, if the Delinquent Borrower(s) fails to provide sufficient justification or does not settle the overdue amount in its entirety, following the Income Recognition and Asset Classification Norms, SCFPL will categorize the Borrower(s) as a Non-Cooperative Borrower. SCFPL will communicate this classification to the Borrower(s).
3. SCFPL may in its sole discretion change such classification of Borrower as a Non-Co-operative Borrower and the  Borrower shall not remain as a Non-Co-operative Borrower upon upgradation of Borrower’s account, however no intimation for such upgradation shall be sent across to the Borrower(s) by SCFPL.

(v) Regulatory Declarations (for corporate Borrowers): The Borrower must affirm that none of its directors or Guarantor (or any of its directors, if applicable) holds a position as a director/senior officer in a banking company or has a specified close relation with a director/senior officer of the Lender. Except to the extent disclosed to SCFPL, all the Borrower’s contracts or agreements with, or any commitments to, any affiliates or group companies (if applicable) are on an arm’s length basis. Moreover, none of the directors of SCFPL holds a position as a director, manager, managing agent, employee, or guarantor of the Borrower/its subsidiary/holding company. They also do not possess substantial interest in the Borrower/its subsidiary/holding company. Furthermore, directors of any other company, including directors of scheduled cooperative banks and directors of subsidiaries/trustees of mutual funds/venture capital funds, do not hold substantial interest or have any interest as a director or guarantor of the Borrower. The Borrower or any directors/promoters/associate concerns of the Borrower (including the Guarantor) are not, and to the best of their knowledge:

1. on the specified approval list of the Export Credit Guarantee Corporation (ECGC); or
2. convicted under the provisions of Conservation of Foreign Exchange and Prevention of Smuggling Activities  Act, 1974; or 
3. on RBI’s wilful defaulters/ caution list; or  
4. on the Lender’s defaulter list; or  
5. Or not qualified to act as director in accordance with applicable Law. 

 In the case where the above negative confirmations/ declarations are not true, then the Borrower shall provide a written  declaration with details of such relationship to SCFPL. If the details of such declaration change during the term of the Facility, then the Borrower shall promptly provide a written declaration to SCFPL of any such changes.

(w) The Borrowers and the Guarantor(s) are obligated to furnish information to SCFPL if they obtain any subsequent credit facility from other lending institutions. Additionally, the Borrowers and the Guarantor(s) must inform SCFPL about any individual or “group” credit facility that has been availed or is being availed by them from the Company. In this context, “group” refers to loans obtained by various relatives (as defined under the Companies Act, 2013) or in the name of various entities within the Group, such as companies, partnerships, trusts, societies, special purpose vehicles, mutual funds, etc., and includes both Borrowers and Guarantors.

(x) The Borrower(s) is not authorized to cancel the Facility or decline the disbursement of the Facility without the approval of SCFPL. If cancellation is approved by SCFPL, the Borrower(s) must make payment of the specified cancellation charges as detailed in the Schedule of Charges. However, SCFPL retains the right to terminate, at any point in time, all or any undrawn portion of the Facility by providing notice to the Borrower(s).

(y) The Borrower is accountable for ensuring the submission of the insurance policy, along with the necessary endorsement in favor of SCFPL, to SCFPL.

(z) In the light of the RBI Circular dated November 12, 2021, bearing reference no. RBI/2021-2022/125 DOR.STR.REC. 68/21.04.048/2021-22, SCFPL has displayed on the website the regulatory requirements, example along with terms,  for the customers, the process of categorization of the loan account as NPA i.e., Non-Performing Asset and SMA  i.e., Special Mention Account.

(aa) In case of any service-related issue, the Applicant can contact SCFPL using the details provided in the Customer Grievance Redressal mechanism, which is available on the website.

(bb) SCFPL holds the right to alter the terms and conditions at any time without prior notice. The company may revise these terms and conditions periodically. The updated terms and conditions will become effective upon being posted on our Company’s Website. The responsibility lies with the Applicant to comprehend these terms and conditions before initiating a loan request. If the Applicant proceeds to use the Website or submits a loan request, it indicates the Applicant’s agreement to the modified terms.

(cc) Additional Terms for Digital Lending: Borrowers opting for loans through the Company’s digital lending mode will receive comprehensive information about product features, loan limits, and associated costs to enhance their awareness. The Company will furnish a Key Fact Statement (KFS) to the Borrower, containing all essential information, including but not limited to details of loan, fees, charges, APR details, recovery mechanism, details of the grievance redressal officer, cooling-off period, etc. If the Borrower wishes to exit the Loan, they can do so within the Cooling-off period. This period is 3 days for loans with a tenure of 7 or more days and 1 day for loans with a tenure of less than 7 days, starting from the date of executing the Agreement. To exit the Loan during this period, the Borrower must give written notice to the Company. However, the Borrower shall be responsible for paying the principal amount and the proportionate APR during this period. APR refers to the effective annualized rate charged by the Company to the Borrower. For borrowers who choose to continue with the loan even after the cooling-off period, pre-payment shall continue to be allowed as per existing RBI guidelines. The disbursements in such cases shall always be made into the bank account of the borrower except for disbursals covered exclusively under statutory or regulatory mandate (of RBI or of any other regulator), flow of money between the Lender for co-lending transactions and disbursals for specific end use, provided the loan is disbursed directly into the bank account of the end-beneficiary. The borrower shall be provided with an option to give or deny consent for the use of specific data, restrict disclosure to third parties, data retention, revoke consent already granted to collect personal data and if required, make the app delete/ forget the data. The parties agree that the purpose of obtaining borrowers’ consent needs to be disclosed at each stage of interface with the borrowers. Explicit consent of the Borrower shall be taken before sharing personal information with any third party, except for cases where such sharing is required as per statutory or regulatory requirements.