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:

Product	Ticket Size (INR)	ROI
MSME – Rural – Business Loans
Financial Inclusion Loans	1-5 lacs	20-28%
Micro Business Loans	5-15 lacs	18-26%
Small Business Loans	15-30 lacs	16-24%
Veritas – Home Loans
Home Loans	Rs 5-30 lacs	14.5-20%
Loan Against Property	Rs.5-100 lacs	12.5-20%
MSME - Working Capital Loans
Unsecured	Rs 0.50 to 2 lacs	27-28%
Secured	Rs 2-10 lacs	24-26%
Used Vehicle Loans
Secured	Rs 1-15 lacs	15-24%

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.

Responsible Lending Conduct:

Through its published website or as appropriate if specific to a customer, Veritas will give Notice to its Borrower(s), of any change in the terms and conditions of the sanction. Veritas will also ensure that changes in interest rates, fees and charges are effected only prospectively.

Decision to recall/ accelerate payment or performance under the Agreement will be in consonance with the respective loan Agreement.

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

Veritas shall release all the original movable / immovable property documents and remove charges registered with any registry within a period of 30 days after full repayment/ settlement of the loan account along with No objection certificate.

In case of failure to release the documents before 30 days, a sum of Rs.5000/- for each day of delay shall be paid by Veritas. In case of loss/damage to original immovable property documents, either in part or in full, Veritas shall assist the borrower in obtaining duplicate/certified copies of the immovable property documents and shall bear the associated costs, in addition to paying compensation as indicated above. However, in such cases, delayed period penalty will be calculated after 60 days. The above is without prejudice to the right of Borrower as per applicable law.

Veritas shall give its Borrowers with options of collecting the original movable / immovable property documents either from its branch where the loan account was serviced or from any other office of Veritas where the documents are available, as preferred by the Borrower.

In the event of demise of the Borrowers or Joint Borrowers:

The legal heirs of such Borrowers alone shall be entitled to claim/ collecting the original movable / immovable property documents from Veritas. In such instance, all legal heirs of such Borrower should be physically present in the branch for collecting the original movable / immovable property documents, if all legal heirs of the borrowers are unable to visit the branch, an authorization letter in favour of any one of the legal heir to be produced. If one or more legal heirs are minors, the natural guardian or the court appointed guardian should collect the documents on behalf of the said minor legal heirs.

The following documents are accepted as valid proof of death and legal heirs of the deceased.

• Death certificate of the title holder issued by respective municipalities
• Legal Heir certificate issued by Revenue authorities / Thasildar or Succession Certificate issued by a jurisdictional court or
• Letter of Administration
• Magistrate/ District Civil court endorsement on an affidavit detailing the legal heirs
• In the event of a dispute among the legal heirs, a court issued Succession Certificate/Letter of Administration alone will be accepted as authenticated proof of legal heirs.

Central KYC Registry

The Central Registry of Securitisation Asset Reconstruction and Security Interest of India(CERSAI) is entrusted with keeping the KYC records of customers in a Central Repository.

Documents Required for CKYC

1. Proof of Identity (PoI)-PAN Card, Aadhar Card, Passport, Driving license, Voter ID,NREGA Job card
2. Proof of Address (PoA)-Aadhar Card, Passport, Driving License, Voter ID
3. Recent passport size photograph
4. PAN Card details

CKYC Identifier & Its Uses

• CKYC Identifier is a unique 14-digit identifier assigned to you based on the KYC details uploaded by your financial institution on CKYCR.
• CKYC Identifier can be obtained directly from any financial institution with whom you have an account-based relationship.
• CKYC Identifier is valid pan India and can be used when opening an account with any financial institution regulated by RBI, SEBI, IRDAI and PFRDA
• Submit the CKYC Identifier whenever you want to start a new financial relationship instead of submitting the same KYC documents (PAN Card, Driving License, Passport, etc.) repeatedly.
• By submitting documents at one place, you can update your KYC details such as contact details, current address, etc. with all the financial institution you have account with.

Benefits of using your CKYC Identifier

• One time KYC compliance / updation for all financial relationships
• Can be used across financial products – Banking, Insurance, Stocks, POPs
• No repeat KYC documentation required.
• Paperless KYC process.
• Your CKYC Identifier can be used PAN India Obtain your CKYC Identifier from your financial institution TODAY.

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.