Fair Practices Code

1. Objective

This Fair Practices Code ("FPC") sets minimum standards to ensure transparency, integrity, and ethical conduct in all dealings by 1financep2p.com ("Platform"), its employees, outsourced agents, lenders, borrowers, and representatives. This code complies with the Master Directions – NBFC – Peer to Peer Lending Platform (Reserve Bank) Directions, 2017 and subsequent amendments.

2. Scope & Applicability

This code applies to:

  • All employees and representatives of 1financep2p.
  • All Lenders and Borrowers using the Platform.
  • Communication, marketing, KYC, risk disclosure, grievance redressal, and recovery procedures.

3. General Principles

The Platform adheres to the following core principles:

  • Transparency: Clear communication of terms, fees, and risks.
  • Accountability: Fair conduct by all stakeholders.
  • Non-discrimination: No bias based on gender, caste, religion, or other personal characteristics.
  • Privacy: Strict confidentiality and data protection protocols.
  • Grievance Redressal: Time-bound and accessible resolution of complaints.
  • Compliance: Adherence to all applicable laws, including RBI guidelines.

4. Fair Practices Code for Lenders

Lenders using the platform agrees to:

  • Read and understand the Terms of Use and Risk Disclosure before registering.
  • Not borrow money to lend on the platform.
  • Honor loan offers once made; no withdrawals post-listing.
  • Not harass borrowers directly, including for recoveries or personal verification.
  • Engage only with Platform-authorized legal advisors in case of defaults.
  • Comply with income tax regulations and declare income earned from P2P lending.

5. Fair Practices Code for Borrowers

Borrowers using the platform agrees to:

  • Provide accurate and complete information during registration and loan application.
  • Use borrowed funds only for the stated purpose.
  • Make timely repayments as per the agreed schedule.
  • Inform the Platform immediately of any changes in financial circumstances.
  • Not engage in fraudulent activities or misrepresentation.
  • Cooperate with the Platform's recovery processes in case of default.

6. KYC & Documentation

  • All users must complete KYC verification before using the platform.
  • Documents will be verified through authorized agencies.
  • Physical verification may be conducted for high-value transactions.
  • All documentation will be maintained as per regulatory requirements.

7. Risk Disclosure

  • All risks associated with P2P lending are clearly disclosed to users.
  • The Platform does not guarantee returns or recovery of principal.
  • Users acknowledge understanding of credit risk, liquidity risk, and operational risk.
  • Risk disclosure documents are provided in English and local languages.

8. Communication Standards

  • Loan terms shall be shared in English and borrower's preferred language.
  • All changes to interest rates, repayment schedules, or terms will be communicated in advance via email.
  • Sanction letters, agreements, and enclosures will be provided electronically.
  • 'No objection certificates' will be issued within 15 working days of loan closure.

9. Interest Rates and Charges

  • Interest rates and charges are transparently disclosed on a case-by-case basis.
  • All fees and charges are shared prior to finalizing the loan transaction.

10. Privacy & Confidentiality

All borrower and lender data will be treated confidentially, except:

  • As required by law or regulatory authorities.
  • When authorized by the user.
  • To prevent fraud or criminal activity.
  • For group company purposes (with explicit consent).

11. Grievance Redressal

The platform provides a transparent, time-bound grievance redressal mechanism:

  • Complaints must be resolved within 30 days.
  • Contact details of the Grievance Redressal Officer (GRO) are available on the website.
  • Escalation contacts of the RBI's regional office are also provided.

12. Periodic Review & Amendments

  • The Board and senior management will periodically review this Fair Practice Code.
  • Amendments to this Code will be effective from the date the revised Code is published on the Website.

13. Declaration by Lenders

All lenders must provide explicit acknowledgment that:

  • They understand the risk of lending through a P2P platform.
  • Returns are not guaranteed.
  • The platform does not assure recovery of principal or interest.

Contact & Communication

For more information or clarifications, please contact:care@1financep2p.com

Website:www.1financep2p.com