Notice to a borrower shall be provided in vernacular language as understood by him of any alteration in terms and conditions such as interest rates, disbursement schedules, prepayment charges, service charges etc., and it shall also be made sure that modifications in charges and interest rates are affected only prospectively. The suitable situation in this view shall be comprised of a loan agreement.
The post-disbursement supervision of all the loans shall be as per the normal business practice, the guidelines and terms of sanction issued by the RBI from time-to-time.
The decision to accelerate/recall performance or payment under an agreement shall only be carried by the loan agreement.
All the securities on the repayment of every due amount or on the realization of an outstanding aggregate of the loan that is subject to the lien or legitimate right, for another claim which the company might have against the borrower, shall be released. If any such right of set-off needs to be used, the borrower will be offered a notice regarding the same along with complete details about remaining conditions and claims under which the NBFCs are authorized to retaining securities until the important claim is paid/settled.