Fair practice code

I. Introduction

 

Siemens Financial Services Private limited (SFSPL) is a Non Banking Finance Company incorporated on
the 23rd of September, 2010. SFSPL is regulated by the Reserve Bank of India and is part of Siemens
AG, a global powerhouse in electronics and electrical engineering, operating in the fields of industry,
energy and healthcare as well as providing infrastructure solutions. The Siemens Group has circa
367, 000 employees located in its operations in around 190 countries throughout in the world.


SFSPL offers a range of financial solutions, including lending and leasing programs. The products offered
include term loans, leases and hire purchase arrangements for asset financing, such as healthcare
equipment, industrial & production machinery, and technology & energy assets for all types of
organizations - from small to large enterprises.


SFSPL endeavours to be sensitive to customer needs, and provide services in a timely and efficient
manner so as to provide a consistent level of customer service.


The Siemens values of being Responsible (Committed to ethical and responsible actions), Excellent
(Achieving high performance and excellent results) and Innovative (Being innovative to create sustainable
value) are an integral part of SFSPL’s culture. These values also form the basis of the Company’s
processes, policies and behaviour. Treating customers fairly at every stage of the process and building
enduring relationships is a vital part of SFSPL living out its values.


The Official language for all communications within the company or with third parties shall be English. All
communications to the borrower shall be in English or in Vernacular language / the language as
understood by the borrower and intimated to the Company. In this regard, a Declaration will be obtained
from all our Borrowers with respect to the language understood by them. This declaration will form a part
of the loan agreement itself.
SFSPL would include all necessary information in its loan documents which affects the interests of the
borrower, so that a meaningful judgement of the terms and conditions be made by the borrower.


SFSPL has established the following guidelines as a Fair Practices Code for its dealings with customers.

 

 

II.     Scope of SFSPL’s Fair Practice Code

 

This Fair Practices Code (FPC) is aimed at providing customers with an overview of the practices
followed by SFSPL for their dealings with us. The scope of this document is limited to the financial
services provided to the customer during their business relationship tenure with SFSPL. It is based on the
guidelines on the Fair Practices Code as set out by the Reserve Bank of India.

 

 

III.   Objectives of Fair Practice Code

 

i.      To provide full information/knowledge to customers regarding the products and services offered
        by SFSPL so as to enable them to take an informed decision.


ii.     To increase transparency, so that, customers can have a better understanding of what they can
        reasonably expect of the services.


iii.    To promote a fair and cordial relationship between the customer and SFSPL.



IV.   Application for Loans and their processing:


i.     Loan application forms will include necessary information which affects the interests of the
       borrower, so that a meaningful comparison with the terms and conditions offered by other
       NBFCs can be made and an informed decision can be taken by the borrower. The loan
       application form may indicate the list of documents required during submission of the application
       form


ii.    SFSPL shall acknowledge the receipt of completed application forms. The time frame within
       which loan applications will be disposed of will also be indicated in the acknowledgement.


iii.  The Company will process finance applications based on information received in writing, in order
       to ensure a fast and accurate processing service.


iv.   Information typically required by SFSPL to process a finance application will depend on the type
      of business and / or organization applying for finance and will also include details such as the
      applicant’s name, address, business, years of operation, financial details (the extent dependent
      on the financing value required) and any applicable business or practice registration number etc.


v. SFSPL will:


    a. Provide clear information with regards to interest and fees (if any) charged on an individual
        contract basis.
 

    b. Process the application within the reasonable timeframe of receipt of the necessary details,
        provided all required information is available to SFSPL at the time of submission by the customer.
 

    c. Provide written confirmation of its decision to the customer, including the amount of the finance
        sanctioned, the terms and conditions of the finance, including the annualized rate of interest (and
        method of application thereof), and any terms of acceptance – including the period for which the
        acceptance is valid.
 

    d. Issue Sanction letter/term sheet describing the terms and conditions, to all customers whose
        financial facility has been sanctioned, after due diligence
 

    e. Ensure that all finance agreements and enclosures provided to customers contain the terms &
        conditions, and the rate of interest, which shall be enclosed with the finance agreement.
 

    f. Keep on record for a reasonable time all details relating to the finance application decisions.

 


V.    Loan Appraisal and Terms & Conditions


i.     The Loan applications shall be assessed in accordance with SFSPL's credit policy.
 

ii.    Upon apprapproval of the loan, a sanction letter/term sheet indicating the amount of loan sanctioned,
       annualised rate of interest applicable (including method of application thereof), penal interest or
       delayed payment charges (in case of delay in payments of installments beyond due dates) along
       with the terms and conditions, shall be conveyed to the loan applicant in writing. A written
       acceptance of such terms and conditions shall be retained by SFSPL.
 

iii.   The basis of the rate of interest charged to customers will be as per the Company’s Interest Rate
       Policy and will be agreed in advance with customers by way of finance contract documentation.
 

iv.   A copy of the loan agreement along with a copy each of all enclosures quoted in the loan
       agreement shall be provided to all the borrowers at the time of sanction / disbursement of loans.
 

 

VI.  Disbursement of Loans, including changes in terms & conditions


i.     In the event that a customer’s agreement is subject to any changes in its terms and conditions,
       including variations in its disbursement schedule, interest rates, service charges, prepayment
       charges etc. A notice in writing will be provided to the customer in advance by SFSPL. Changes
       in interest rates and charges will be applied as of the effective date of such a change and not
       retrospectively.
 

ii.   Any decision to recall or accelerate payment due to customer performance under the finance
      agreement will be in accordance with the terms permissible under the finance agreement.


iii.  SFSPL will, subject to the contractual terms in accordance to the prevailing law, release all
      securities associated with a customer finance agreement on repayment of all dues, or on the
      realization of the outstanding amount of the loan subject to any legitimate right or lien for any
      other claim the Company may have against the customer. If such right of set off is to be
      exercised, the borrower shall be given notice about the same with full particulars about
      the remaining claims and the conditions under which SFSPL is entitled to retain the
      securities till the relevant claim is settled.
 

 

VII.   General Provisions

 

i.      SFSPL shall not interfere in the affairs of the customer except for the purposes set out in the
        terms and conditions of the finance agreements (unless new information that was not earlier
        disclosed by the customer, comes to the notice of the Company).
 

ii.     In the event that the customer expresses a request to transfer its obligations under the agreement
        to another party, SFSPL will give its decision (consent or otherwise) within 21 days from the date
        of receipt of the request. Any transfer of a customer’s agreement to another party shall be subject
        to the contractual terms in accordance to the prevailing law.
 

iii.    In the event that it is necessary to recover overdue payments from customers, SFSPL will not
        unduly harass or persistently bother the customer at inconvenient hours, or use undue pressure
        for the recovery of overdue payments. SFSPL shall ensure that the staff is adequately trained in
        handling collection activity in a professional manner by adopting a due legal process as per the
        law of the land.
 

iv.   SFSPL charges interest only as per the terms of the Finance Agreement/Sanction Letter. Any
       delay in payment of installments as per the repayment schedule will attract penal interest at such
       rate as has been communicated to the customer in the Sanction Letter and Loan Agreement.


v.    SFSPL may arrange for enforcing security charged to it of the delinquent borrower, if required,   
       with an aim only to recover dues and will not be aimed at whimsical deprivation of the property.


vi.   SFSPL shall ensure that the entire process of enforcing its security, valuation and realization
       thereof be fair and transparent.

 

 

VIII. Grievance Redressal Mechanism

 

SFSPL has an established complaints and grievance procedure (see below), for which the Company’s
Finance and Operations Director is accountable. Any grievance or complaint raised by a customer will be
treated in accordance with the established processes and policies of the Company.


SFS shall display the following information prominently, for the benefit of its customers, at the branches /
places where business is transacted:

 

i.     The name and contact details (Telephone / Mobile nos. and email address) of the Regional
       Grievance Redressal Officer and Nodal Grievance Redressal Officer who can be approached by
       the public for resolution of complaints against the Company. The Regional Sales Head shall act
       as the Regional Grievance Redressal Officer and shall be responsible to address the Complaints
       of the Customers.
 

ii.    If the complaint / dispute is not redressed within a period of 15 days from the date of receipt of
       Complaint by the Regional Grievance Redressal Officer, the customer may approach the Nodal
       Grievance Redressal Officer of SFSPL. Mr. Harsh Nangalia has been appointed as the Nodal
       Grievance Redressal Officer.
 

iii.   If the complaint / dispute is not redressed within a period of 15 days from the date of receipt of
      Complaint by the Nodal Grievance Redressal Officer, the Customer may appeal to the Officer-in-   
      Charge of the Regional Office of Department of Non-Banking Supervision (DNBS) of Reserve
      Bank of India, Department of Non- Banking Supervision, Mumbai Regional Office, 3rd Floor, Opp.
      Mumbai Central Station, Byculla, Mumbai - 400 008, under whose jurisdiction the registered office
      of the NBFC falls.


Customer can also contact the Company at the details mentioned below:
 

Compliance Officer               
Siemens Financial Services Private Limited
Plot No. 2, Sector 2, Kharghar Node, Navi Mumbai - 410 210
 

Tel:  +91(22) 3362 7000
Fax: +91(22) 3362 7500 

Email: sfs.compliance.in@siemens.com

 

 

IX.  Issuance of No Due Certificate

 

SFSPL shall issue NOC/ NDC after 30 days of settlement of all dues by the Customers.

 

 

X.  Review of Policy on Fair Practices Code

 

The Board of SFSPL will periodically review its compliance to this Fair Practices Code through accurate recording,
analysis and review complaints and customer feedback records. The Board will also take steps to address any
deficiencies where required and appropriate.

 

Interest Rate Policy

 

The rate of interest is determined as per interest rate policy of Siemens Financial Services Private
Limited’s, which takes into consideration elements such as market borrowing (cost of funds), upfront
margin and risk premiums.


Our approach to the gradation of risk is not intended to discriminate between classes of borrowers but
instead customize the interest rate to correspond with the loan amount. The decision to offer a loan, and
the interest rate established are thus carefully assessed, and applied on a deal-by-deal basis and
consideration of the associated level of risk.


Besides market conditions, the interest rate offered is also based on the obligor’s probability of default ,
their past, present and projected cash flows, the borrower’s credit record, the security of the loan as
represented by underlying assets or other financial guarantees.


This information is collated through data provided by the customer, market intelligence and information
available in public domain. Please note that additional charges (e.g. processing fees, late payment fees,
prepayment fees) may be levied during the life cycle of a contract.


Based on the above, our Lending Rates will generally be in between 6% – 23% per annum* which would
differ based on the credit worthiness of the obligor, tenure of financing, economic life of asset being
financed etc.

 


* in certain cases, interest rate may fall outside the indicated range, subject to necessary approval from
the authority holders which is dependent on the vintage & size of the obligor and the market
competitiveness.

Scope of SFSPL’s Fair Practice Code

This Fair Practices Code (FPC) is applicable to customers and their dealings with SFSPL in placing and thereafter managing their financing agreements at SFSPL. It is based on the guidelines on the Fair Practices Code as set out by the Reserve Bank of India.

Application Management

  • The company will process finance applications based on information provided in writing, in order to ensure a fast and accurate processing service
  • Information typically required by SFSPL to process a finance application will depend on the type of business and/or organisation applying for finance but will typically include details of the applicant’s name, address, trading style, length of time trading, financial details (the extent dependent on the financing value required) and any applicable business or practice registration number, in addition to the details of the financing required – type of financing, term and value of the finance and details of the asset (if any) to be financed.
  • SFSPL will subject to relevant laws and regulations:
  1. Provide clear information with regards to interest and fees (if any) charged on an individual contract basis.
  2. Acknowledge in writing receipt of all finance applications, within a reasonable timeframe of their receipt from the customer.
  3. Assuming all required information is available to SFSPL at the time of submission by the customer, process the application within a reasonable timeframe of receipt of the necessary details.
  4. Provide written confirmation of its decision to the customer, including the amount of the finance sanctioned, the terms and conditions of the finance, including the annualised rate of interest (and method of application thereof), and any terms of acceptance – including the period for which the acceptance is valid.
  5. Ensure that all finance agreements and enclosures provided to customers contain the terms and conditions and the rate of interest, which shall be annexed to the finance agreement.

Finance Agreement Set Up & Maintenance

  • SFSPL will provide all customers with a copy of their finance agreements, together with any necessary enclosures at the time the finance is sanctioned and the agreement is set up.
  • The basis of the rate of interest charged to customers will be at the discretion of the company’s management and will be agreed in advance with customers by way of finance contract documentation.
  • In the event that a customer’s agreement is subject to any changes in its terms and conditions, including variations in its disbursement schedule, interest rates, service charges, prepayment charges etc. notice in writing will be provided in advance by SFSPL. Changes in interest rates and charges will be applied as of the effective date of such a change and not before this date.
  • Any decision to recall or accelerate payment or customer performance under the agreement will be in accordance with the terms permissible under the finance agreement.
  • SFSPL shall not interfere in the affairs of the customer except for the purposes set out in the terms and conditions of the finance agreement (unless new information comes to light, that was not earlier disclosed by the customer, comes to the notice of the company).
  • In the event that the customer expresses a request to transfer its obligations under the agreement to another party, SFSPL will give its decision (consent or otherwise) within reasonable time frame of receipt of the request.   Any transfer of a customer’s agreement to another party shall be subject to the contractual terms in accordance to the prevailing law.

Recovery of Overdue Payments

In the event that it is necessary to recover overdue payments from customers, SFSPL will not unduly harass or persistently bother customers at inconvenient hours, nor use undue pressure for the recovery of overdue payments.

Finance Agreement Ending Procedures

SFSPL will, subject to the contractual terms in accordance to the prevailing law, release all securities associated with a customer finance agreement on repayment of all dues, or on the realisation of the outstanding amount of the loan subject to any legitimate right or lien for any other claim the company may have against the customer.

If the company has any other claim against the customer, this right of set off shall be exercised only after the customer has been given a notice about the same, subject to the contractual terms in accordance to the prevailing law, with full particulars about the remaining claims and the conditions under which the company is entitled to retain the securities till the particular claim is settled or paid.

Complaints and Grievances

At Siemens Financial Services Pvt Limited, we believe in providing the best of services to our Customers. We provide customers with easy access to information, products and services, as well as the means to get their grievances redressed.

Complaints Procedure

Western Region:

If you have a grievance, please feel free to contact the Regional Head (West) Sales at:

 

Mr. Vijay Venkatraman

+91 (22) 33264657 

vijay.venkatraman@siemens.com 


Siemens Financial Services Pvt Ltd 
Plot No. 2, Sector 2, Kharghar Node, Navi Mumbai - 410 210

Southern Region

If you have a grievance, please feel free to contact the Regional Heads(Sales) at:

 

Mr. Raghunanda Gupta (Karnataka and Kerala)

+91 (80) 33422038 

raghunanda.gupta@siemens.com 


Siemens Financial Services Pvt Ltd 
49, St. Marks Road Bengaluru - 560001 

Mr. Prakash P (Tamil Nadu, Andhra Pradesh and Telangana)

+91 (44) 66784051 

prakash.p@siemens.com 


Siemens Financial Services Pvt Ltd 
272/688, Anna Salai Service Lane, Anna Salai, 
Chennai - 600006

Northern Region:

If you have a grievance, please feel free to contact the Regional Heads(North)- Sales at:

 

Ms. Sangeeta Shinde / Mr. Adil Mohd. (Healthcare)

+91 (124) 6216014 

sangeeta.shinde@siemens.com 
adil.mohd@siemens.com 


Siemens Financial Services Pvt Ltd 
Plot No. 78, JIL Building, Tower-B, Sector-18, Near SBI Academy, Gurgaon-122015 

You will receive a response within 15 calendar days of our receiving your communication.

If the resolution you receive does not meet your expectations, please write to our Nodal Grievance Redressal Officer at:

 

Mr. Harsh Nangalia

+91 (22) 3967 2671 

harsh.nangalia@siemens.com 


Company Secretary & Compliance Officer 
Siemens Financial Services Pvt Ltd 
Plot No. 2, Sector 2, Kharghar Node, Navi Mumbai - 410 210

You will receive a response within 15 calendar days of our receiving your communication.

If your Compliant/ dispute is not redressed with a period of 15 days, you may appeal to the Officer-in-Charge of the Regional Office of DNBS of RBI at:

 

+91 (22) 24939930-38 
+91 (22) 24939938 

dnbs@rbi.org.in 


Dr. Annie Besant Road, Worli 
Department of Non Banking Supervision , Mumbai Regional Office 3rd Floor, Garment House 
Mumbai- 400018

Review of Policy on Fair Practices Code

The Board of SFSPL will periodically review its compliance to its Fair Practices Code through accurate recording, analysis and review of complaints and customer feedback records, and  where appropriate take steps to address any deficiencies.

Statements of Charges

At Siemens Financial Services Private, we believe in offering tailored financial solutions, to meet the requirements of our customers and ensure that we can consistently provide the most competitive interest rates.

Interest Rate Policy

The rate of interest is determined as per interest rate policy of Siemens Financial Services Private
Limited’s, which takes into consideration elements such as market borrowing (cost of funds), upfront
margin and risk premiums.


Our approach to the gradation of risk is not intended to discriminate between classes of borrowers but
instead customize the interest rate to correspond with the loan amount. The decision to offer a loan, and
the interest rate established are thus carefully assessed, and applied on a deal-by-deal basis and
consideration of the associated level of risk.


Besides market conditions, the interest rate offered is also based on the obligor’s probability of default ,
their past, present and projected cash flows, the borrower’s credit record, the security of the loan as
represented by underlying assets or other financial guarantees.


This information is collated through data provided by the customer, market intelligence and information
available in public domain. Please note that additional charges (e.g. processing fees, late payment fees,
prepayment fees) may be levied during the life cycle of a contract.


Based on the above, our Lending Rates will generally be in between 6% – 23% per annum* which would
differ based on the credit worthiness of the obligor, tenure of financing, economic life of asset being
financed etc.


* in certain cases, interest rate may fall outside the indicated range, subject to necessary approval from
the authority holders which is dependent on the vintage & size of the obligor and the market
competitiveness.

To Apply

Eligibility & Documents Required

KYC (Know Your Customer) Documents

KYC Documents are required documents required to confirm one’s Identity, address and signatures. Our KYC policy is driven by RBI guidelines. We accept all RBI recommended ID proofs, address proofs and signature IDs. The list of KYC Documents required for funding depends upon RBI guidelines, deal structure and applicant entity. Our Local Relationship Manager will assist you to confirm the exact list of KYC documents required as per your funding requirement.

Financial Documents

To design the best possible solution for your funding requirements, we analyze the financial condition of your organization in depth. We follow industry specific rating models and analysis tools to design customized solutions for our customers. Our Relationship Manager will visit you to understand your financial requirement and your entity structure. Accordingly, they will convey to you the list of financial documents required for providing you with the best possible solution.