Last updated: November 2026
This Fair Practices Code sets out the standards Jyothika Micro Finance Pvt. Ltd. (“the Company”) follows when dealing with customers. It applies to all products, staff and agents of the Company.
1. Applications and loan processing
- All communication with borrowers will be in a language they understand.
- Loan application forms will list the documents required, and an acknowledgement will be given for applications received.
- Applications will be processed within a reasonable time, and the borrower will be informed of the decision.
- If an application is rejected, the borrower will be informed of the main reasons.
2. Loan terms and conditions
- Before disbursal, the borrower will receive a sanction letter or loan agreement in writing, stating the loan amount, annual rate of interest, method of application, EMI or instalment schedule, all fees and charges, and penal charges if any.
- A Key Fact Statement with the all-in cost of the loan will be shared before the borrower signs.
- The borrower will receive a copy of the loan agreement and all enclosures.
- Any change in terms, including interest or charges, will be communicated in advance and will apply prospectively.
3. Interest and charges
Interest rates and charges are decided in line with our Interest Rate Policy. The Company will not charge anything that is not disclosed in the loan documents.
4. Disbursal and repayment
- Loans will be disbursed to the borrower's bank account wherever possible.
- Repayments will be accepted through transparent channels, and receipts will be provided for every payment.
- On full repayment, all securities and original documents will be released, and a no-dues confirmation will be provided.
5. Responsible lending
- The Company will assess a borrower's repayment capacity before lending and will not encourage over-borrowing.
- For microfinance loans, household income and existing obligations will be considered, as required by applicable regulations.
6. Recovery practices
- Recovery staff will identify themselves and behave courteously at all times.
- The Company will not use intimidation, harassment, abusive language or physical force.
- Borrowers will not be contacted at unreasonable hours or in a way that intrudes on their privacy.
- Borrowers facing genuine difficulty are encouraged to speak to us early so that we can discuss options.
7. Customer privacy
Personal information will be kept confidential and used only for the purposes it was collected for, except where disclosure is required by law or with the customer's consent. See our Privacy Policy.
8. Non-discrimination
The Company will not discriminate on the basis of gender, caste, religion, disability or any other ground.
9. Grievance redressal
Customers can raise any concern through the process described on our Grievance Redressal page.
10. Review
This Code will be reviewed periodically by the Board of Directors and updated as required.