CONSUMER EDUCATION

Veritas Finance Private Limited (“Veritas Finance” or “the Company”), is a Systematically Important Non-Deposit taking Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India. Veritas Finance has been promoted with a primary purpose of meeting the working capital and business credit requirements of the small businesses in the MSME sector.

As per regulatory guidelines, to educate customers on the revised non-performing assets (NPA) norms and to sensitize them on the importance of due dates and other related aspects, this consumer education information is being made available on the website of the Company.

The Company as per the process laid out typically intimates the borrower regarding the loan amount, annualized rate of interest, insurance premium, processing fees at the time of meeting a potential customer, who then fills out the loan application form having satisfied with the information provided as part of the direct sourcing process. Post sanction of the loan, the sanction letter issued by the Company clearly communicates the terms of the loan including penal interest for delayed payment, charges for bounce of payment instrument, tenure of the loan and the complete repayment schedule including instalment amount, split of principal and interest etc.; and more detailed information are given in the loan agreement.

INTEREST RATE

The prevailing interest rate based on the interest rate policy linked to the risk assessment of the customer is furnished below:

The above interest rate is subject to periodic review by the Company based on the cost, risk assessed etc., and the exact interest rate will be mentioned at the time of sanction for every loan.

EQUATED MONTHLY INSTALMENTS (EMI)

EMIs are calculated based on loan repayment tenure and rate of interest availed. EMI is the total amount of principal and interest repayment that is paid on monthly basis for the tenure of the loan as applicable. Once the EMI is paid, the principal component reduces the total loan outstanding amount.

EMI PAYMENTS ON DUE DATE & DELAYED PAYMENT CHARGES

The due date of all MSME loans shall be on 5th of every month, for all home construction loans it is 10th of every month and for working capital loans with daily/weekly repayments, it is as per the repayment schedule. Customers are requested to ensure sufficient amount in their designated bank account at least one day prior to the said due date of EMI repayment as the payment is preferred using NACH.

DELAYED PAYMENT CHARGES

Dishonoured Cheque / Failed NACH would attract both one-time bounce charges at the time of dis-honour as well as late payment charges for the delayed period till the EMI is paid.

CONCEPT OF DATE OF OVERDUE AND NPA

The EMIs or the repayment dues are expected to be paid on or before the Due Date. Post the Due Date, it becomes overdue. The Non-Performing Assets (NPA) refers to those loans aggregated at the customer level where repayment dues / EMI were not paid on time for a period of more than 90 days.

NON-PERFORMING ASSETS (NPA) CLASSIFICATION BASED ON DAY-END PROCESS

Classification of borrower accounts as Special Mention Account (SMA) as well as NPA shall be done as part of day-end process for the relevant date and the SMA or NPA classification date shall be the calendar date for which the day end process is run.

Example: If an account crosses 90 days on due date, say 5th December 2021, then it is classified as an NPA on 5th December 2021.

NPA UPGRADATION

Loan accounts classified as NPAs can be upgraded as ‘standard’ asset only if entire arrears of interest and principal are paid by the borrower. Any partial amount collected which reduces the number of EMIs pending to less than 3 EMIs, will not result in upgradation of the asset.

Example: An NPA account is having 4 EMIs due. Earlier, if 2 EMIs were collected, then the account was upgraded to Standard asset. As per the Revised norms, only if all the 4 EMIs due are collected in full and the account is rolled-back to X-bucket, the account will be treated as resolved and classified as standard.

Once a loan crosses 90 Days Past Due (DPD), it will be flagged as a NPA in the system on that date. Such flag will be removed only when the asset reaches 0 DPD, i.e., when the entire arrears is cleared or when the loan is settled and closed.

CUSTOMER CARE CONTACT DETAILS

Any grievance or requests of the customer can be brought to the knowledge of the Company through the customer connect centre. Our customer care toll free number is 1800-599-5500 and the email id is customercare@veritasfin.in.