FAIR PRACTICES CODE

A) This code may be known as "JKITL - Fair Practices Code" hereinafter referred to as "the Code".

B) This Code has been made pursuant to Reserve Bank of India Circular DNBS (PD) CC No. 80 / 03.10.042 / 2005-06 dated September 28, 2006 .

C) The Board of Directors have approved and adopted this Code on 19 th day of January, 2007.

A) Objective
To provide assurance to the Borrowers of the Company's commitment to fair business and corporate practices.

B) Applicability
This Code applies to the following areas to the extent applicable to the Company:

1. Applications for loans and their processing:
a) Application forms would include necessary information about the fees/charges, if any, payable for processing, the amount of such fees that, might be refundable in the case of non acceptance of application and any other matter which affects the interests of the borrower, so that a meaningful comparison with the terms and conditions offered by other competitors can be made and an informed decision be taken by the prospective borrower.

b) The loan application form shall indicate the documents required to be submitted along with the application form.

c) The Company would give an acknowledgment for receipt of all loan applications. The normal time frame within which loan applications will be disposed of would also be indicated in the acknowledgement.

2. Loan appraisal and terms/conditions:
•  The Company would ensure the borrower that there is proper mechanism to assess the loan application made by the borrower.

•  The Company would convey in writing to the borrower the amount of loan sanctioned along with the terms and conditions including annualised rate of interest and method of application thereof and keep the acceptance of these terms and conditions by the borrower on its record.

3. Disbursement of loans including changes in terms and conditions:
a) The Company would timely disburse the sanctioned loans.

b) The Company would give notice to the borrower of change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges etc. It would also ensure that changes in interest rates and charges are effected only prospectively.

c) Decision to recall / accelerate payment or performance under the agreement would be only in consonance with the loan agreement.

d) The Company would release all securities on repayment of all dues or on realisation of the outstanding amount of loan subject to any legitimate right or lien for any other claim the Company may have against borrower with prior notice to the borrowers. The notice will provide full particulars about the remaining claims and the provisions under which the Company is entitled to retain the securities till the relevant claim is settled/paid.

4. General:
a) The Company would not interfere in the affairs of the borrower except for the purposes provided in the terms and conditions of the loan agreement.

b) In case of receipt of request for transfer of borrowal account, the consent or objection will be conveyed within 21 days from the date of receipt of request. Such transfer shall be as per transparent contractual terms in consonance with law.

c) In the matter of recovery of loans, the Company would not resort to undue harassment viz persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans, etc.

5. Grievance Redressal Mechanism:
a) The Board of Directors of the Company would lay down the appropriate grievance redressal mechanism. Disputes arising out of the decisions of the Company's functionaries would be heard and disposed of at the next higher level.

b) The Board of Directors would periodically review the compliance of the Fair Practice Code and the functioning of grievances redressal mechanism at various level of management. The Board of Directors has power to amend any of the provisions of this Code.