Policy ID: PCI/POL/27/2026-27 • Version 1.0 Owner: Legal / Credit / Operations • Approver: Board of Directors Sources: RBC, CF, STR • Review: Annual / regulatory change
Purpose and application
Approved loan agreements, schedules, sanction letters and borrower consent.
1. Standard documentation:- Legal shall maintain approved product templates with borrower/lender identity, sanctioned amount, net disbursement, purpose, tenure, interest basis, EMI dates, security and total charges. Product-specific underwriting remains in the relevant separate lending policy.
2. Pre-contract explanation:- Provide KFS where applicable and explain the agreement in the borrower’s understood language. Obtain genuine signature/e-consent, furnish copies and preserve audit trails. Do not obtain signatures on blank schedules or leave material fees unstated.
3. Servicing terms:- State payment appropriation, reset options, reminders, reasonable penal charges, prepayment, cancellation and refunds. Changes shall be prospective and lawful. Digital fund flows, cooling-off and data permissions shall follow applicable RBI requirements.
4. Default and security:- Define material default, notice/cure and lawful enforcement, including repossession safeguards. Set out security release and grievance routes. Contract clauses cannot waive mandatory borrower rights or authorize coercive recovery; settlement status shall be accurate.
5. Review and control:- Only Legal-approved versions may be used. Record borrower-specific deviations with competent approval and ensure KFS/agreement consistency. Audit shall sample executed documents; review templates on regulatory change and at least annually.
Source codes are linked to the Reference Register. Read with the common implementation controls and relevant annexes. Applicable law and RBI Directions prevail.