This Code of Fair Practices is framed in accordance with Reserve Bank of India guidelines issued vide Circular number RBI/2006-07/138 DNBS (PD) CC number 80/03.10.042/2005-06 dated 28th Sept 2006 by the Dept of Non Banking Financial Companies.

The objectives of the Code are:-

• To ensure transparency in the Company's dealings with its customers
• To ensure compliance with legal norms in matters relating to recovery of advances
• To strengthen mechanisms for redressal of customer grievances
• That the Board of Directors undertakes a periodic review of business practices to ensure that these are fair and equitable

1. Application for Loans and their processing :

1. All Loan Application Forms shall contain detailed information relating to the terms and conditions governing the Loan and other relevant information affecting the interest of our valuable customers. These forms shall also contain the particulars of standard documents to be submitted with the Application Form.
2. The Company shall follow the system of issuing acknowledgements for receipt of all loan applications.
3. It shall be our endeavor to disburse any loan that is being applied for within 48 hours of execution of relevant documents following sanction of the loan.

2. Loan Appraisal and Terms and Conditions :

1. We shall convey to the borrower through a Sanction Letter the following particulars:

1. Assets details & Cost of Asset
2. Sanctioned Amount
3. Rate of Interest
4. Tenor
5. Instalment amount and structure
6. Commencement Date
7. Repayment Schedule
8. Contact point for any clarifications

2. Acceptance of the Sanction Letter by the Customer shall be kept on record

3. Disbursement of Loans and changes in Terms and Conditions:

At Magma ITL Finance Limited we shall value openness and transparency in the system. We shall keep our customers informed in the event of any modification in terms and conditions, repayment schedule, interest rates, security, and other changes material to customer's relation with Magma ITL Finance Limited.

4. Recall of Loan:

Any decision pertaining to Recall of Loan or Acceleration of repayment or seeking of any additional securities shall be taken strictly in accordance with the relevant provisions in the Loan Agreement and amendments made thereto.

5. Release of Securities:

Magma ITL Finance Limited shall ensure that the charge over any security provided by the customer is relinquished upon the happening of any of the following events, subject to any legitimate right or lien for any other claim against the customer:

1. prepayment of all dues by the customer
2. transfer of account and consequent settlement of all dues
3. closure of the loan file in due course following settlement as per agreement

6. General Clauses:

1. Magma ITL Finance Limited shall not interfere in the affairs of the borrower except as provided under the circumstances mentioned in the loan agreement.
2. However, if any new information or findings not previously disclosed by the borrower comes to the notice of Magma ITL Finance Limited, the above restriction shall not apply.

3. Whenever a request for transfer of loan account is received from a customer, Magma ITL Finance Limited shall respond to the same within 21 days of receipt of request. Acceptance or refusal thereof shall be in accordance with terms of the loan agreement.

4. Any recovery proceedings need to be initiated, these shall be conducted in accordance with the rights provided under the Loan Agreement and in accordance with legally accepted norms.

7. Grievance Redressal Management:

It shall be the endeavor of Magma ITL Finance Limited to improve the quality of service and remove complaints and grievances, if any.

The Board of Directors of the Company shall also constitute / lay down the appropriate grievance redressal mechanism within the organization to resolve disputes arising in this regard. Such a mechanism shall ensure that all disputes arising out of the decisions of the Company's functionaries are heard and disposed of at least at the next higher level. A complete report, as may be prescribed by the Board, of such reviews, shall be submitted to the Board at regular intervals.

8. Committee on Code of Fair Practices:

A Committee of the Board of Directors called "Fair Practices Code Committee" shall be constituted.

The Members of the Committee shall be as nominated by the Board of Directors from time-to-time. The Committee shall frame its own rules regarding the conduct of its business and delegate powers as it deems necessary.

This Committee shall monitor the compliance of the Fair Practices Code and the functioning of the customer grievances redressal mechanism.

The functioning of the grievance redressal mechanism shall be reviewed from time-to-time by the Committee which shall submit its report to the Board of Directors.

9. Procedure for Amendments

The Code of Fair Practice may be amended from time-to-time based upon the following:

• Subsequent notifications and Guidelines, if any, to be issued by the Reserve Bank of India
• As deemed necessary by the management keeping in view the underlying spirit of the RBI Guidelines and its objectives

Any material modifications to the Code will need prior approval of the Fair Practices Code Committee.

The Fair Practice Code shall be displayed on the Website of the Company when the Company shall have its Website for the information of its stakeholders.