LOAN POLICY BY MONEYLOJI.COM OWNED AND OPERATED BY Ganesh Leasfin Pvt Ltd; a private limited company registered under the laws of India (with Corporate Identification Number : U74899DL1995PTC065228). The company is also a Non-Bank Financial Company (NBFC) registered with Reserve Bank of India that offers loan repayment options starting from 7 days to a maximum of 60 days
PLEASE READ THIS LOAN POLICY CAREFULLY BEFORE USING THE SERVIES OF THIS SITE OR THE COMPANY. BY ACCESSING OR USING THE SITE AND ANY PAGES WITHIN, YOU AGREE TO BE BOUND BY THIS LOAN POLICY. IF YOU DO NOT AGREE TO THIS LOAN POLICY, DO NOT ACCESS OR USE THE SITE, OR AVAIL SERVICES FROM COMPANY OR ANY PAGES THEREOF.
This document outlines our approach to Loan Policy. Please read the following carefully to understand our practices regarding your loan application, processing and disbursement and all related ancillary actions in this matter.
A. MoneyloJi.com is a modern money lending platform, that offers short term personal loans to salaried individuals in India. The management of NBFC believes that sound loans represent a desirable and profitable means of employing NBFC’s funds. All such loans to salaried individuals and extensions of any credit shall be consistent with sound and prudent internal practices of the NBFC and in full conformity with applicable laws, regulations, rulings, and interpretations thereof, and shall be made without regard to race, sex, origin or any other prohibited basis. This policy clearly enforces adherence to the requirements of the reserve Bank of India as may be applicable from time to time.
1. The loan application, processing and disbursement shall include extensive use of artificial intelligence based online system which is proprietary to the NBFC. Such robust system is owned and operated by the company through an internal mechanism in a transparent manner and shall be in compliance with this policy. The human employees are expected to make all such loans permitted by the resources of the NBFC.
2. Allocating relevant resource(s) for loans shall be determined by the Company’s management in, provided that the Board of Directors agrees they shall be consistent with the maintenance of a sound capital structure, adequate liquidity, and appropriate profitability standards. Primary consideration will be given to existing and potential consumers, which shall be based on an Artificial Intelligence based system of approval which may or may not require human intervention at any time.
B. The Company recognizes that lending of money entails reasonable business risks. Some losses are to be expected in the lending program, however the policy and procedures being put in place for checks and approvals are to ensure that the risks are minimized or removed.
1. It is the policy of the Company to maintain a reserve for future loan losses consistent with the policy set forth by the management of the company, provided that the Board of Directors may review quarterly such reserves to ensure they are sufficient and adequate to meet possible loan losses.
2. Loans may be charged off, with the concurrence of the Chief Executive Officer or such other officer that the Board of Directors may so decide. The amount charged off shall be the amount of exposure on the loan that the NBFC has identified as uncollectible. The loss shall be taken at the end of the month in which the loss is identified. All loans charged off shall be reported to the Board of Directors at its next scheduled meeting.
A. The Board of Directors shall be delegated the responsibility to review at the quarterly meeting the administration of lending activities. As part of its regular responsibilities, and at its regular meeting, the Board of Directors shall:.
1 . Review all approvals of and extensions of credit to any obligated party of the Company, either directly or indirectly, where the total indebtedness exceeds INR 50,000..
2. Review all delinquent loans above INR 10,000.
3. Review all loans determined by the Artificial Intelligence process through its loan review policy or by any regulatory authority as possessing unwarranted or more than normal risk.
4. Approve the Chief Executive Officer’s recommendations for loans to be charged off.
5. Review exceptions to and interpretations of this loan policy..
6. Review all exceptions to compliance with laws and regulations as may be brought to its attention by the Company’s Compliance Officer or others.
7. Review concentrations of credit where the obligations exceed 25 percent of the Company’s equity, capital, and reserves to certain set of individuals or related group of individuals..
B. The Loan Committee may be constituted which shall meet each month and shall be composed of the Chief Executive Officer, the Chief Operating Officer, and the Senior Loan approval Officer or such composition that the Board may so decide. A quorum shall consist of two voting members. Other Officers of the NBFC who have been delegated lending authority may attend meetings as nonvoting members. Responsibilities of this committee are:
. To ensure that the artificial intelligence based process of loan approval, processing and disbursement is rightly in place and not affected by any internal risks of technology or process.
. To approve authorizations for and extensions of credit above artificial intelligence ordinary lending authority. The limit being INR 50,000.
. To discuss and evaluate the recommendations of loans of unusual nature, which may involve an interpretation of this policy, or where there is no existing automated credit approval is granted.
. To review all transactions for loans which require more than normal attention, over and above ordinary process of disbursement of artificial intelligence based processing.
. To provide a forum for the determination, analysis, and examination of pricing policies and strategies in the lending areas including review, modification of approval, processing or disbursement process of artificial intelligence based loan lending.
. To provide a forum for communication on subjects such as marketing, changes in laws and regulations, changes in economic conditions, review of the current asset/liability administration policies, and compliance with the renewed notifications or policies by Reserve Bank Of India.
. To review all loans determined by the Company’s standard loan review process or by any regulatory authority to possess unwarranted or more than normal credit risks.
C. Administration of the Company’s lending activity shall be supervised by the Chief Executive Officer of the NBFC (who shall be appointed by the Board of Directors) and the Chief Executive Officer shall follow the policies. The Chief Executive Officer shall seek the advice of the Board of Directors when in doubt as to credit decisions or questions involving the application of loan policies. The Chief Executive Officer shall be responsible for the development and administration of written procedures to implement this policy including ensuring proper implementation and working of artificial intelligence based loan lending.
A. Although ultimate authority for all lending activities is vested in the Board of Directors, the Board hereby delegates the administration of these responsibilities to the artificial-intelligence-based process ensured to be in place by Loan Committee and delegates responsibilities for execution of the lending policy to loan officers by the establishment of lending authorities.
A lending authority is the amount an individual officer may extend to any one obligor and shall include all direct loans, unfunded commitments, overdrafts, liabilities under letters of credit, and contingent liabilities (which may be described as “all direct and indirect liabilities”). The current value of loan approvals are upto INR 50,000 per applicant with a tenure of 7 to 60 days through an instant approval process.
Specifically excepted from this delegation of responsibility are all loans or credits to insiders or their interests (defined as executive officers, directors, principal stockholders or any of their interests) where the amount of credit extended by the Company to such insider or interest(s) would result in an aggregate loan or commitment exceeding INR 50,000. Pursuant to the Board’s right to delegate authority, lending limits are delegated as follows:
1. Board of Directors or as delegated to Chief Executive Officer—legal limit of the Company.
2. Officers Loan Committee (acting as a committee)—legal lending limit of the Company.
3. Credit approval authority for individual officers may be designated by the Chief Executive Officer up to INR 50,000.
4. Lending officers may not combine their lending authority with another lending officer. A lending officer who does not have sufficient authority to approve a loan must seek the approval of an officer with sufficient authority or refer the loan to the Officers Loan Committee.
B. One of the purposes of this policy is to provide parameters of responsibilities under which each officer with lending authority may operate in the performance of his or her function as a lending representative of the NBFC. All lending authorities granted herein, to any and all officers, will be accepted as a great responsibility to be exercised wisely.
C. Each officer shall digitally sign all documentary notes evidencing loans approved and administered by such officer, which are approved through an artificial intelligence based process. Where the requisite loan authority requires the initials of two officers, the officer primarily responsible for the lending relationship shall initial above the officer joining him or her. No note will be accepted for processing by the Loan Operations division of the NBFC unless properly digitally signed through an approved process of artificial- intelligence-based lending.
A. One of the goals of the Company’s lending policy is to meet the legitimate credit needs (as may be defined from time to time by the Company itself) of the community we serve. Generally, that community includes all states and cities of India, without any bias or discrimination of jurisdiction..
B. However, effective ability to lend in varying geographic areas is a function of servicing requirements, credit risks, economies of scale in relation to transaction size, and incremental profitability of the credit transaction. Accordingly, loans may, because of their inherent risk nature, have different constraints and thereby different rates.
A. Overall pricing policy will be formulated by the Chief Executive Officer and coordinated with the Company’s Asset/Liability Committee to ensure that the profitability objectives of the NBFC is in conformity with desired objects.
1. Loans shall be of unsecured nature and shall ordinarily have Interest Rate varying with the loan tenure. Up to 30 days it is 0.7% per day or 255.5% APR (Annual Percentage Rate) and for the loan tenure of 60 days, it is 0.6% per day or 219% APR (Annual Percentage Rate), however subject to final approval by the Loan process / Loan officer / CEO / Board of Directors.
2. Processing fees, ordinarily shall be upto Rs 20,000 – Rs 499+applicable GST rate and for above Rs 20,000 upto or equal to Rs 50,000 – Rs 699 + applicable GST Rate.
3. Penalty for delayed payment 0.3% per day (this is in addition to the interest charged) Plus Rs 500 bounce charges.
A. It is expected that NBFC will offer short term lending to salaried individuals for a period of 7 to 60 days in a quick and secured environment. Such loans shall be unsecured, and in nature of a salary advance, without the need to disclose the reason for availing such lending.
Loans to salaried individuals for short term purposes are considered as primary desirable segment of the NBFC’s lending activities. These loans are to be made in accordance with generally accepted principles of short term lending. In general principal source of repayment is recognized to be the most valid criteria for repayment of loan though following criteria may also be considered :
a. Positive identification of each applicant is required through documents procured during artificial intelligence based process of application of loan. The Company may run a background investigation of credit history in cases it shall deem necessary, in other cases, the approval shall be instant.
b. Both the amount and the source of the applicant’s income must be verified and analyzed to assist in evaluation of the ability to repay.
c. Both the amount and the source of the applicant’s income must be verified and analyzed to assist in evaluation of the ability to repay.
d. Willingness to pay shall be determined by past payment records. Any record of significant collection difficulties should be considered a reason to decline the application.
e. In some instances, the loan must be supported by the collateral offered. In those instances, an adequate loan-to-value margin shall be a condition precedent to the granting of the loan.
A. Diversification of the loan portfolio is practical to the extent that it minimizes risk without adversely affecting sound credit opportunities and the legitimate credit needs of the community. Concentrations of credit to a particular industry or limitation to salaried individuals in same company / within a small geographic area, shall be reviewed by the Chief Executive Officer.
B. Concentrations of credit are defined as obligations, direct or indirect, of the same or affiliated interests that represent 10 percent or more of the NBFCs total equity, capital, and reserves. The Board of Directors will review these concentrations of credit at least annually.
A. In the interest of sound and prudent lending practice and to ensure adequate liquidity and appropriate profitability, the Chief Executive Officer shall recommend loan policy guidelines to the Board of Directors and be responsible for their administration. Included in such recommendations will be loans that have been rated by any regulatory authority as containing more than normal risk.
B. These recommendations shall also be communicated to the Company Management to ensure that they are consistent at all times with the goals and objectives of that NBFC.
It is the policy of the Company to encourage extensions of credit to its officers and directors or their interests provided that such extensions conform to this policy. Officers and directors shall conduct their business affairs with such standards of integrity that no conflict of interest exists or could reasonably be construed to exist. Each officer and director must be alert to the potential conflicts of interest where personal profit or gain might arise from relationships with consumers that might tend to interfere with the exercise of independent judgment in the handling of business for the NBFC.
A. The loan review officers are responsible for reviewing the credit risk inherent in the lending activities of the NBFC. The Loan Review Department of the Company shall be relied upon for advice as needed. Any policies set forth by the Loan Review Department of the NBFC shall be carried out by the loan officers. Any reviews made by Company of the loan department will be furnished to the Board of Directors, with copies made available to the CEO.
B. Review shall be conducted on a continuing basis for all loans made by the originating officer or though ordinary artificial intelligence based loan lending.
C. Loans previously charged off shall be reviewed within the loan department continuously and by the loan committee every six months until there is no longer any possibility of recovery.
A. The Compliance Officer of the NBFC will ensure the adequacy of compliance by the Company with all laws and regulations relative to lending, the extension of credit, and all other pertinent compliance areas. The Compliance Officer shall be appointed by the Board of Directors.
B. The Compliance Officer shall draw up a Compliance Plan to be approved by the Company’s Board of Directors. Administration of the plan shall be the responsibility of the Compliance Officer, who shall report on the status of those responsibilities at least annually to the Board of Directors.
A. In appropriately meeting the legitimate business needs of the community, there will be loan requests which, if granted, would represent exceptions, in whole or in part, to this policy. The system of organization and responsibilities herein established provides for the approval of such exceptions.
B. Each exception must be specifically recognized as an exception to policy and specifically reviewed and approved by the appropriate committee.
C. It is the responsibility of the loan officer to recognize, document, justify, and advocate those exceptions that he or she feels are warranted to properly meet the legitimate credit needs of the community within the framework of sound and prudent lending.
D. Each lending department will establish maximum exception levels and monitor exceptions not to exceed these levels.
1. We will always value the trust of our clients and the importance of keeping their personal financial information confidential.
3. We will hold our employees to the highest standard of conduct in ensuring the confidentiality of client information.
4. If any unsolicited medical information about our clients is received, we will not use that information in connection with any determination of the client’s eligibility for credit or any other unlawful purpose.
5. We will use information responsibly in order to provide our clients with significant benefits, including fraud prevention and improved products and services, and to comply with the law.
6. We will establish procedures to maintain accurate information and respond in a timely manner to client requests to change or correct information.
7. We will use a combination of safeguards to protect our clients against the criminal use of their confidential information and to prevent unauthorized access to it.
8. We will offer our clients the option of restricting information shared with third parties for marketing purposes and will honor their preference.
10. We will not provide account numbers to companies outside our family of companies for marketing purposes.