This document is the Bank’s Fair Practices Code for Lending, which is a voluntary code for dealing with customers in the course of the Bank’s lending business. Unless otherwise stated at relevant places in this code, the code is applicable to both Corporate Lending and Retail Lending. For the purpose of this Code, the term ‘credit’ will include all funded and non-funded credit facilities. RBI’s guidelines / directives, that may be issued from time-to-time, will override the Code where applicable. 2 Short title and commencement 2.1. This Code is called IDBI Bank Ltd. Fair Practice Code for Lending. 2.2. This Code is made pursuant to the Directives of Reserve Bank of India, vide Circular No:DBOD.Leg.No.BC.204/09.07.007/2002-03 dated May 5, 2003. 2.3. This Code is applicable to all members of staff of IDBI Bank Ltd. 2.4. The Board of Directors of the Bank may modify the Code from time to time. 3 Applications for Loan and its Processing 3.1. Application for loan in the loan application form/Loan related important document (LRID) shall be comprehensive to include information about rate of interest (fixed/floating) and manner of charging (monthly/quarterly/halfyearly/yearly), process fees and other charges, penal interest rates, pre-payment option and any other matter which materially affects of the interest of the borrower. The LRID would be retained with the applicant for his future reference and would also act as an acknowledgement for the applicant for having submitted
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Fair Practices Code for Lending
the application form. (A copy of the filled application form duly signed by the borrower would also be retained by the borrower). It is expected that credit application from borrower will be completed in all aspects and be accompanied by all supporting documents specified by the Bank. 3.2. The
