Fare Practice Code


GUFSPL is operating under Section 25 of the Companies Act. However, voluntarily it is practicing the fair practice code of RBI for NBFCs. It is also a member of the self regulatory body Sa-Dhan.

1.    Processing of Loan Applications

a) G U Financial Services Private Limited operates in seven districts in Odisha state. Out of these seven districts six districts are in coastal areas namely, Kendrapara, Cuttack, Bhadrak, Dhenkanal, Jajpur, Baleswar and one district in western Odisha namely  Nuapada. It has operated through 24 branches given as follows.

Sl.No.

Name of districts

Number of Branches

1

Kendrapara

7

2

Cuttack

2

3

Bhadrak

5

4

Dhenkanal

1

5

Jajpur

5

6

Baleswar

3

7

Nuapada

1

Total

24


The loan is delivered to the members through formation of Joint Liability Groups (JLG) of women for income generating purposes. In a village loan is disbursed once a group is formed consisting of 2 JLGs and minimum of 8 members having at least 4 members in a group. After the group is formed the Credit Officers conducts Compulsory Group Training (CGT) where the group members are orientated on the benefits of forming a JLG and terms and conditions of loan. If the members agree to the loan conditions then the Branch Manager Visits the village and conduct Group Recognition Test (GRT) where the BM assesses the group cohesiveness, ability, capacity and credibility, commitment and previous loan performance of the member. After conducting the GRT , KYC collection, loan application, processing, sanction and disbursement takes place. Post disbursement the Credit Officers ensure proper loan utilization and timely recovery of loan.
b) The Company would give acknowledgement for the receipt of all loan applications to each member who are selected for availing loan support.

2.    Loan Appraisal and terms / conditions

a) The sanction letter contains the terms and conditions including annualized rate of interest and method of application thereof. The acceptance of the terms and conditions communicated by the borrower is preserved by the company in its records.

b) Acceptance of these terms and conditions by the borrower is kept on branch records.

3. Disbursement of loans including changes in terms and conditions

a) The company communicates by conducting meeting with the borrowers of any change in the terms and conditions including disbursement schedule, interest rates, service charges etc. The company ensures that changes in interest rates and other charges are affected only prospectively.
b) Decision to recall / accelerate payment under the agreement is made in consonance with loan agreement.

4. General
a) ) The company does not interfere in the affairs of the borrower except for the purposes provided in the terms and conditions of the loan agreement.
b) In the matter of recovery of loans, the company resort only to remedies which are legally permisible and avoid using recovery measures during odd hours of the day.
5. Grievance Redressal Mechanism

a) In case of any complaint / grievance, the borrowers may contact in the following channels:
Name of the Grievance Redressal Officer:
Miss Minakshi Das


Tool Free Number:  18003457113


Fair Practices Code Issued by RBI