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AGFCPL is a non banking finance company registered with RBI and is In the business of financing to schools and SME sector, Company is following "FAIR PRACTICE CODE" as prescribed by RBI. Board of Directors has confirmed to RBI that company is adhering to guidelines set by RBI in this regard.


  1. Ensuring that the company is following fair practices as prescribed by RBI.

  2. Ensuring that company's product's are well compliant with regulatory norms.

  3. To strengthen the grievance redressal system of the company.

Policy Guidlines on Fair Practice Code

The Reserve Bank of India (RBI) has issued guidelines on Fair Practices Code for Non Banking Finance Companies (NBFCs) thereby setting standards for fair business and corporate practices while dealing with their customers (Circular No. RBI/2006-07/138 DNBS (PD) CC No. 80 / 03.10.042/ 2005-06).The Company shall adopt all the best practices prescribed by RBI from time to time and shall take appropriate modifications if any necessary to this Code to conform to the standards so prescribed. It is, and shall be, the policy of Alwar General Finance Company Pvt Ltd (AGFC) to make available to all eligible qualified applicants, without discrimination on the basis of race, caste, colour, religion, sex, marital status, age or handicap all financial products, either directly or through subsidiaries and /or associates.The Company's policy is to treat all the clients consistently and fairly. The employees of the Company will offer assistance, encouragement and service in a fair, equitable and consistent manner. The Company will also communicate its Fair Practices Code (FPC) to its customers by uploading the FPC it on its website.The Company will ensure that the implementation of the FPC is the responsibility of the entire organisation. The Company's fair lending practices shall apply across all aspects of its operations including marketing, loan origination, credit underwriting, processing, and servicing and collection activities. Its commitment to FPC will be demonstrated in terms of employee accountability, training, counseling, and monitoring, Management Information Systems, auditing programs and internal controls, and with optimal use of technology.The Company's Board of Directors and the management team are responsible for implementing the fair practices hereinafter detailed, and also to ensure that its operations reflect its strong commitment to all the stakeholders for offering in a fair and equitable manner, the various financial services and products especially, lending and that all the employees are aware of this commitment.

This Fair Practices Code applies to the following categories of products and services offered by us (currently offered or which will be introduced at a future date).
1. Loans, guarantees and other products in the nature of financial assets.
2. Products offered through a network consisting of the branches of the Company, its subsidiaries and associates. The FPC is applicable to the above irrespective of whether the same is provided physically, over the phone, on the internet or by any other method whatsoever, existing or futuristic.

Key Commitments: - The key commitments, which the Company promises to follow in its dealings with its customers, are:
a. To act fairly and reasonably in all dealings with its customers by ensuring that:
Its products, services, procedures and practices will meet the commitments and standards in this FPC.
Its products and services will meet relevant laws and regulations in letter and spirit as applicable.
Its dealings with its customers will rest on ethical principles of honesty, integrity and transparency.b. The Company will assist customers in understanding how its financial products and services work by:
Providing information about them in simple Hindi and/or English and/or the local language.
Explaining their financial implications and
Helping the customer choose the one that meets his / her needs.c. The Company will make every attempt to ensure that its customers have a trouble-free experience in dealing with it; but in the case of errors or commissions and omissions, the Company will deal with the same quickly and sympathetically.
Mistakes will be corrected quickly.
Complaints will be handled quickly.
In case a customer is not satisfied with the way a complaint is handled, the Company will guide the customer on how to take the complaint forward.
The Company will reverse any charges including interest applied to a customer's account due to an error or oversight on its part. Sales Origination The Company will guide its customers in choosing products and services which meets his/her requirements.d. Before the customer relationship is established, the Company will:
Give the customer information explaining the key features of the services and products the customer has shown interest in.
Give information on accounts, products and services which will suit the customer's needs.
Clearly state the information that the Company requires to collect from the customer to fulfill its "Know Your Customer" norms and to comply with legal and regulatory requirements in force from time to time.
Request for additional information about the customer and his / her family to build a database; but this information will be furnished by the customer only if she / he wish to do so.e. The Company will provide information on the various channels that can be used to access its products and services. The customer will also be informed on where further information on this is
available.f. Once a customer has chosen a product, the Company will tell the customer how it works.g. The Company will guide its customer on rights and responsibilities specific to the mode of operation under which the product is taken.

Loans and Advances
Before offering any kind of fund based or non fund based non-banking facility the Company will assess the ability of the customer (prospective borrower) to repay.

Application for loans and their processing
1. Loan application forms of the Company will include necessary information which are likely to affect the interests of the prospective borrower, so that a meaningful comparison with the terms and conditions offered by other Non Banking Finance Companies can be made and an informed decision taken by the
prospective borrower.
2. The loan application form shall indicate the documents required to be submitted along with the application form.
3. The Company shall provide to the prospective borrower an acknowledgement for receipt of all loan applications. An indicative time frame within which loan applications will be disposed of will be mentioned in such acknowledgement.
4. All communications to the borrower shall be in the vernacular language or a language as understood by the borrower.

Loan Appraisal & terms/ conditions

1. AGFC shall convey in writing to the borrower in the vernacular language as understood by the borrower by means of sanction letter or otherwise, the amount of loan sanctioned along with the terms
and conditions including annualised rate of interest and method of application thereof and keep the acceptance of these terms and conditions by the borrower on its record.
2. As complaints received against NBFCs generally pertain to charging of high interest / penal interest, AGFC shall mention the penal interest charged for late repayment in bold in the loan agreement.
3. Appropriate internal principles and procedures for determining interest and other charges shall be laid down and be subjected to review keeping in view the business exigencies, regulatory and customer sentiments, market practices etc. As part of record keeping, the Company shall preserve the acceptance of the terms and conditions communicated by the borrower.
4. AGFC shall furnish a copy of the loan agreement preferably in the vernacular language as understood by the borrower along with a copy each of all enclosures quoted in the loan agreement to all the borrowers at the time of sanction / disbursement of loans.

Disbursement of loans including changes in terms & conditions
1. The Company shall give notice to the borrower in the vernacular language as understood by the borrower of any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges etc.
2. The Company shall ensure that changes in interest rates and other charges are effected only prospectively. The loan agreement shall contain a specific clause to this effect.
3. The decision of the Company to recall / accelerate payment or performance shall be in consonance with the terms of the loan agreement.
4. The Company shall release all securities upon repayment of all dues or on realisation of the outstanding amount of loan subject to any legitimate right or lien for any other claim it will have against
borrower. In case such right of set off is to be exercised, the borrower shall be given due notice with full particulars about the outstanding claims and the conditions under which the Company is entitled to retain the securities till the relevant claim is settled/paid.General
1. AGFC shall refrain from interfering in the affairs of the borrower except for the purposes provided in the terms and conditions of the loan agreement, unless new information, not earlier disclosed deliberately or otherwise by the borrower, has come to its notice.
2. In case of receipt of request from the borrower for transfer of a borrower account to other NBFC, Bank or Financial institution, the consent or otherwise shall be conveyed within 21 days from the date of receipt of such request. Such transfer shall be in accordance with the contractual terms entered into with the borrower and in consonance with the statutes, rules, regulations and guidelines as will be applicable from time to time.
3. In the matter of recovery of loans, the Company shall resort only to remedies which are legally and legitimately available to it and will avoid using recovery measures during odd hours of the day, undue harassment, use of muscle power for recovery of loans. As complaints from customers also include rude behavior from the staff of the companies, AGFC shall ensure that the staff are adequately trained to deal with the customers in an appropriate manner.
4. There shall be no discrimination in extending products and facilities including loan facilities to the physically / visually challenged applicants on grounds of disability (Ref: RBI Circular No. DNBS.CC.PD.No. 191/03.10.01/2010-11 dated July 27, 2010).

Terms and Conditions
a. When a customer accepts a product or service for the first time, the Company will provide the customer with the Rules and Regulations that are relevant to the product / service.
b. All Terms and Conditions will be fair and will set the customers rights and responsibilities clearly and in plain language, the Company will use legal or technical language only where necessary.
c. The Company will make available any charges applicable to products and services applicable.
d. If the Company increases any charges or introduces a new charge, the Company will notify the same to the customers.
e. The Company will provide the terms and conditions in respect of any product or service whenever a customer requests for the same.

Marketing and Product Synergy

a. The Company will ensure that all advertising and promotional material is clear, fair reasonable and not misleading.
b. The Company will provide the customers with a full range of financial products the customer is eligible for. Some of these products / services will be its own; some others will be the products of the companies with which the Company will have arrangements with.
c. It will be the endeavor of the Company to bring synergy between the various financial services, financial products, by cross selling these products to its clientele.

a. Unless authorized by the customer the Company will treat all personal information as private and confidential.
b. The Company will not reveal transaction details to any other entity other than the following exceptional cases: -
a. f the Company have to provide the information by statutory or regulatory laws,
b. If there is a duty to the public to reveal this information.
c. If its interest requires us to provide this information (e.g. fraud prevention). The Company will not use this reason for giving information about customers to anyone else (including companies where it has arrangements for various products and services) for marketing purposes.
d. If customer has given consent / concurrence to provide/share such information to its group / associate / entities or companies for providing other products or services.
e. Where the customer asks us to reveal such information to its group / associate / entities or companies for providing other services or products.

Grievance Redressal Mechanism
The Company shall also lay down the appropriate grievance redressal mechanism within the organization to resolve disputes arising in this regard. Such a mechanism shall ensure that all disputes arising out of the decisions of the Company's functionaries are heard and disposed of at least at the next higher level. The Board of Directors shall also provide for periodical review of the compliance of the Fair Practices Code and the functioning of the grievances redressal mechanism at various levels of management. A consolidated report of such reviews shall be submitted to the Board at regular intervals, as may be prescribed by it. To start with Company may provide the same on quarterly basis.a. The Company will guide customers who wish to lodge a complaint and also provide guidance on what to do in case the customer is unhappy with the outcome.
b. After examining the matter, the Company will send a response as soon as possible; the Company will also guide a customer on how to take the complaint further if the customer is not satisfied.
c. A nodal officer shall be appointed for the redressal of grievances of the customers including the borrowers, in connection with any matter pertaining to business practices, lending decisions, credit management and recovery. The name and contact details of the nodal officer shall be displayed in the website of the Company.
d. Internally constituted Customer Grievance Redressal Council comprising senior management officials, to review with the Nodal Officer and oversee the Grievance Redressal Mechanism.
e. As per RBI Circular No. RBI/2012-13/416 DNBS .CC.PD.No.320/03.10.01/2012-13, the Company shall display the following information prominently, for the benefit of the customers, at their branches / places where business is transacted: the name and contact details (Telephone / Mobile nos. as also email address) of the Grievance Redressal Officer who can be approached by the public for resolution of complaints against the Company.
f. If the complaint / dispute is not redressed within a period of one month, the customer may appeal to the Officer-in-Charge of the Regional Office of DNBS of RBI (complete contact details), under whose jurisdiction the registered office of the Company falls i.e. Jaipur, Rajasthan State Regional Office.
g. In short, the public notice shall serve the purpose of highlighting to the customers, the grievance redressal mechanism followed by the company, together with details of the grievance redressal officer and of the Regional Office of the RBI.

Repossession of vehicles/property
a. The Company shall have a built in re-possession clause in the contract/loan agreement with the borrower which shall be legally enforceable. To ensure transparency, the terms and conditions of the contract/loan agreement shall also contain provisions regarding:i. Notice period before taking possession;
ii. Circumstances under which the notice period can be waived;
iii. The procedure for taking possession of the security;
iv. A provision regarding final chance to be given to the borrower for repayment of loan before the sale / auction of the property;
v. The procedure for giving repossession to the borrower and+
vi. The procedure for sale / auction of the property.

Regulation of Excessive Interest Rate

1. AGFC shall adopt an interest rate model taking into account relevant factors such as, cost of funds, margin and risk premium, etc and determine the rate of interest to be charged for loans and advances.
2. The rate of interest and the approach for gradations of risk and rationale for charging different
rate of nterest to different categories of borrowers shall be disclosed to the borrower or customer in the application form and communicated explicitly in the sanction letter.
3. The rates of interest and the approach for gradation of risks shall also be made available on the web-site of the companies or published in the relevant newspapers. The information published in the website or otherwise published should be updated whenever there is a change in the rates of interest.
4. The rate of interest should be annualised rates so that the borrower is aware of the exact rates that would be charged to the account.Internal control system:
The company has resolved that a senior official of the Company be designated to ensure the adherence of the Fair practices code of the company by all the staff concerned. The Official so designated shall establish systems of internal control including audit and periodic inspection. The Official so designated shall prepare such periodical returns, which adequately reflect the implementation of the Fair practices adopted by the Company and shall submit its report to the Board of directors once in a quarter.


In view of the Outbreak of COVID-19 pandemic, RBI vide its circular No. DOR.No.BP.BC.472/21.04.048/2019-20 dated 27th March 2020, has issued instruction to mitigate the burden of debt servicing brought about by economic disruptions on account of COVID-19 pandemic and to ensure the continuity of viable businesses.

In accordance with RBI COVID-19 Regulatory Package, we at AGFC would like to offer our customers the option of moratorium of up to 3 months on the payment of Loan EMIs dues. You can now choose to defer your Loan EMIs dues falling between March 1, 2020 and May 31, 2020.


  1. Moratorium of three months on payment of all term loan installments falling due between March 1, 2020 and May 31, 2020 for all term loans. Installments include all principal and interest payments, bullet repayments, EMIs, and credit card dues falling due between these dates.
    The repayment schedule for such loans as also the residual tenor will be shifted across the board by three months after the moratorium period. Interest shall continue to accrue on the outstanding portion of the term loans during the moratorium period.
  2. Defer the recovery of interest applied in respect of all working capital facilities during the period from March 1, 2020 up to May 31, 2020 in respect of facilities sanctioned in the form of cash credit / over-draft (CC/OD).
  3. Recalculate the 'drawing power' by reducing the margins and/or by reassessing the working capital cycle for all the existing CC/OD borrowers. This relief shall be available in respect of all such changes effected up to May 31, 2020 and shall be contingent on the lending institutions satisfying themselves that the same is necessitated on account of the economic fallout from COVID-19.
  4. Since the moratorium/deferment/recalculation of the 'drawing power'/ reassessing the working capital cycle are being provided specifically to enable the borrowers to tide over economic fallout from COVID-19, the same will not be treated as concession or change in terms and conditions of loan agreements due to financial difficulty of the borrower. Hence, these reliefs will not result in downgrading of asset classification of the borrower.
  5. This also will not qualify as a default for reporting to Credit Information Companies and also under supervisory reporting.


This policy applies to the credit facilities granted and disbursed by the AGFC and outstanding as on March 1, 2020.

The AGFC would separately issue terms and conditions specific to different types of loans and facilities. Other terms and conditions contained in sanction letter of the loan/facility would remain unchanged.

The AGFC will offer to all borrowers the facility of moratorium (for term loan installments falling due between March 1, 2020 and May 31, 2020) and / or deferment of interest for the months of March 1, 2020 to May 31, 2020 to all borrowers who availed the term loan facilities. The AGFC would continue to accrue and will be charging the interest, at the original contracted rate, for the moratorium period on the outstanding amount of loan to all those who has been given the relief as provided in the RBI circular. This interest has to be paid by the customers as prescribed in this policy. However if any customer would like to pay the amounts during the moratorium period, it would be allowed.

Deferment will not be availed by any facility (ies) holder, where there is overdue even on/before March 01, 2020. Any facility(ies) where any legal is initiated by AGFC are not able to take advantage of deferment of EMI.


The repayment schedule of term loans will shift by up to three months and the tenor of the term loan will be commensurately extended. The installment amounts / EMIs will be appropriately recalculated, including interest during moratorium period.

If borrowers have already paid their installments or serviced their interest for March 2020, such borrowers can avail moratorium for installments falling due in April and May 2020.

How can I apply for Moratorium/Deferment of Installment?

You can apply for moratorium/Deferment of interest by writing to us on, alternatively you can also make a written application in AGFC format and shared us on whatsapp/Email.



RBI has permitted Bank's/NBFC to grant a moratorium of up to three months on payment of all installments falling due between March 1, 2020 and May 31, 2020 for loans booked BEFORE 01 MARCH 2020. Hence the Bank/NBFC will not raise the installment demand during this period and Borrowers are not required to pay the Installment during the period. Accordingly the residual tenor of repayment schedule will be extended.


Moratorium of three months on payment of all installments falling due between March 1, 2020 and May 31, 2020 for loans booked before 01 March 2020 will be offered and no installment demand will be raised to the loan account of the borrower. During the said moratorium period, Interest shall continue to accrue on the outstanding portion of the term loan. The Interest accrued during the moratorium period will be added to the outstanding loan amount and the loan will be extended for a revised tenor, keeping the EMI as the same.


The scheme will be uniformly applicable to all standard term loans under as on March 1, 2020 for loans booked before 01 March 2020. Wherever the March 2020 installment has already been paid by the borrower, the relief would be applicable for the EMI payable in April and May 2020.There is no separate request required from the borrower.


The scheme is uniformly applicable to all standard term loans under Retail Term Loans Program (Personal Loan, Business Instalment Loans, Medical Equipment Loans etc) as on March 1, 2020 for loans booked before 01st March 2020. However if you wish to make the EMI payment during this moratorium period as well, then the same can be remitted to your loan account as Installment paid and the same will be adjusted against the principal and interest amount of the loan. No pre-payment charges will be recovered.


Late payment charges will not be levied on your term loan during the moratorium period.


During the said moratorium period, Interest shall continue to accrue on the outstanding portion of the term loan. The Interest accrued during the moratorium period will be added to the outstanding loan amount and the loan will be extended for a revised tenor, keeping the EMI as the same




Since the relief is extended for instalments of loan which are due only between 1st March 2020 to 31st May 2020, the instalments/other amount overdue on or before 1st March 2020 in any of the loan accounts will have to be regularised in order to avoid penal charges, down-gradation of account and slippage in credit rating

9. Does the moratorium package means an Interest Free Period

No The Morotorium package is not a waiver of installment/Interest. The loan facility will Continue to accure Interest which shall be payable after 31st May 2020, as per the terms of package. The borrower will have to pay Installment/Interest Post moratorium/Deferment Period.

10. Do I need to submit Additional documents In case I Avail The Moratorium benefits?

In case your repayment is through PDC then:
1. Provide New PDC for the revise EMI/Repayment Amount or
2. Provide new NACH mandate

11. Can I Make payment after Availing the moratorium/Deferment of Interest Package?

Yes, You make Payment after availing the moratorium /Deferment of Interest package during the period of Moratorium. By doing so you will be able to reduce your additional interest burden In near future.

12. I Have a loan with another bank/NBFC and they have offered me a moratorium, will I get the same here?

It Is not necessary that if one bank /NBFC has granted moratorium , you will be eligible for same in another Bank/NBFC. Each Bank/NBFC has defined their criteria for customer to be eligible for the scheme.

13.Will there be an impact on my credit score if I don't pay the installment/Interest after opting for Moratorium/deferment?

If case you are eligible and applied for availing moratorium /deferment on your loan facility, AGFC will not report default to the credit bureaus for the moratorium/deferment period. Therefore your score will remain unaffected.

14. Will there be late payment charges/Default interest /Additional Interest for deferred Installment during the moratorium periods?

No Late late payment charges/Default interest /Additional Interest shall be levied during moratorium period.

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GST Registration Number : 08AABCA4988P1ZX

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