Fair Practices Code

OPPORTUNITY MICROFINANCE INDIA LIMITED
FAIR PRACTICES CODE

The Board of directors of Opportunity Microfinance India Limited have approved the Fair Practices Code, for integration in to the Policies and Procedures of the organization and implementation in the daily activities in carrying out the mission of the Company. The Fair Practices Code is based on directions from the RBI circular DBS (PD) CC No. 80-2.10.042 2005-06 dated September 28, 2006 and in accordance with the best practice prevailing in the microfinance institutions in India and other parts of the world.

Application Process:

  1. Application forms with provision to furnish all relevant information affecting the interest of the borrower and consisting of list of the documents required to be submitted, be provided to the clients.
  2. Clients to be presented with a clear statement of the terms and conditions of the loan offered to them and acknowledgement of receipt of application to be noted and documented.
  3. Upon Sanction of Loan by the competent authority, a written term sheet consisting of the sanctioned loan amount, terms and conditions of the loan, annualized rate of interest etc., be provided to the clients and his/her acceptance is obtained thereto.
  4. Any change in loan terms and conditions of loan, such as disbursement schedule, rate of interest, service fees, pre-payment conditions etc., to be intimated to the client with an update on these changes.

Post Disbursement:

  1. Provide constructive interactions and interventions to the client by conducting the work within the policy guidelines and procedures of the Company.
  2. Post disbursement changes in terms and conditions of Loan intimated suitably to the clients prior to such change being affected.

Recovery:

  1. Clients are provided with Proper notice of all claims made. Adequate time and understanding be provided prior to initiation of claim process.
  2. On unfortunate event of recovery process becoming necessary, management and staff to take all reasonable efforts to work in liaison with the client to ensure mutually beneficial outcome.
  3. Refrain from taking coercive recovery measures amounting to harassment with the clients for the recovery of the dues.

Grievance:

  1. Grievances of clients to be viewed seriously and reviewed by the management of the next level. Appropriate corrective measures to be taken within a reasonable time to ensure client satisfaction and they are treated fairly with respect and dignity.
  2. Company’s Board to review the customer grievances/their disposal, on quarterly basis and issue necessary directions required if any.

General:

  1. Refrain from unnecessary and unwanted interference in the affairs of the Client that negatively impacts the functioning of their normal business.
  2. Implement Fair Practices Code and the Credit Policies in conformity with the Core values of the Company to provide services to the clients, focusing on effective client services, outreach, profitability, and market orientation.
  3. Board of directors to review the Fair Practices Code and the Credit Policies from time to time to ensure the compliance with the changes in RBI policies and Industry Standards/Best Practices.

PRIVACY POLICY:

OMI prioritizes protecting personal data of its micro-borrowers. This is an obligation on our part as per the master direction circular of RBI. Each of our micro-borrowers is allotted a unique project number which makes it easy to access the entire data of any individual borrower by OMI. OMI keeps verified information of the borrowers who are members of Self Help Groups (SHG). Purpose of collecting personal data is to fulfill the regulatory requirements, OMI uses the borrowers data and ensures its safety.

RISK MANAGEMENT:

Risk management adds value by continuously improving systems and processes, integrating into governance and strategic planning. It supports informed decisions by identifying and addressing risks through structured, timely, and consistent methods. Grounded in a defined framework, it considers internal and external environments, human factors, and cultural influences. Transparent and inclusive, it engages stakeholders and adapts to change by identifying new risks and retiring obsolete ones. Ongoing monitoring and improvement ensure it supports long-term organizational goals.

WHISTLEBLOWER:

The Company is committed to fairness, transparency, and the highest standards of professionalism, integrity, and ethical conduct. It promotes a culture where employees and Directors can safely report concerns about misconduct or unethical practices. A Code of Conduct has been adopted to guide the behavior of all Directors and Employees. Any violation or perceived breach of the Code is treated with seriousness. The Vigil/Whistle Blower Policy provides a secure channel for employees to report concerns to the Vigilance Officer or, in exceptional cases, to the Chairman of the Audit Committee. Directors may report concerns directly to the Chairman, with protection ensured against any form of retaliation.