KYC, Anti-Money Laundering and CFT Policy
We are required by the Prevention of Money-Laundering Act, 2002 and the RBI's KYC Directions to verify the identity of every customer. Before a loan is sanctioned we will ask for an officially valid document (such as Aadhaar, passport, voter ID or driving licence), your PAN, and a recent photograph. For companies and firms we also ask for constitutional documents and the KYC of beneficial owners and authorised signatories.
Under the policy, Shri Rajesh Singhvi, Director, is the Principal Officer, and Shri Abhay Kumar Mehta, Director, is the Designated Director, as communicated to FIU-India.
Download the full policy (PDF)
Return of original documents to legal heirs
If the sole borrower, or all joint borrowers, pass away, the original documents held by us (such as the RC copy, invoice, insurance papers and any title documents) and the NOC for removal of hypothecation will be released to the legal heirs as follows.
- The legal heir or nominee informs us in writing at our registered office or by email.
- They submit a copy of the death certificate and proof of their own identity and address.
- They submit proof of legal heirship: a legal heir certificate, succession certificate, probate of will or letter of administration. Where the outstanding amount is nil and the heirs agree, a notarised affidavit and indemnity signed by all legal heirs may be accepted.
- Any outstanding dues on the loan are settled, or arrangements for settlement are agreed.
- We verify the documents and release the originals and the NOC, against acknowledgement, within 30 days of receiving the complete documents and settlement of dues.
If there is a delay attributable to us beyond the period above, we will inform the legal heirs of the reasons in writing.
Recovery and repossession
We follow the recovery provisions of our Fair Practices Code. Recovery calls and visits take place only between 8 a.m. and 7 p.m. We do not use threats, abusive language or force, and we do not contact your relatives, friends or employer to shame you.
A vehicle is repossessed only as provided in the loan agreement. Before repossession you will receive a written notice. After repossession you will be given a final opportunity to repay the dues before the vehicle is sold, and you will be told the sale price and how it has been adjusted against your loan.
Recovery agents, if engaged, carry an authorisation letter and identity card issued by us. The current list of empanelled recovery agencies: None engaged.
Interest Rate and Charges Policy
Introduction
At Sunask Finance Limited, we believe in transparency and fairness in the charges and fees associated with our financial products. Our fee structure is designed to be clear, reasonable and compliant with the Reserve Bank of India (Non-Banking Financial Companies – Responsible Business Conduct) Directions, 2025. This policy sets out how interest rates are determined and the charges and fees that may apply to our loans.
Interest rate model
- The Board of Directors has adopted an interest rate model that determines the rate of interest on loans and advances from the Company's cost of funds, margin and risk premium.
- The risk premium reflects the gradation of risk of each borrower, taking into account factors such as loan type, creditworthiness and repayment capacity, the type, age and use of the vehicle, the tenure and security offered, and prevailing market conditions. Borrowers in different risk categories may therefore be charged different rates of interest.
- The rate of interest is an annualised rate, so the borrower is aware of the exact rate charged to the account.
- The rate of interest, the approach for gradation of risk and the rationale for charging different rates to different categories of borrowers are disclosed in the loan application form and communicated explicitly in the sanction letter.
- The applicable rate of interest and the Annual Percentage Rate (APR) are communicated in the Sanction Letter, the Key Fact Statement (KFS) and the loan agreement before disbursement.
- Any change in interest rates or charges is notified to the borrower in advance and takes effect only prospectively.
Processing fees
Processing fees may be levied to cover the administrative costs of loan approval and disbursement. The fee varies with the loan type and amount. The borrower is informed of the exact processing fee at the time of loan application, and it is stated in the KFS.
Penal charges
- A penal charge may be levied for delayed payment beyond the due date, or for other non-compliance with material terms and conditions of the loan agreement.
- Late payment charges are calculated as a percentage of the overdue amount only, as specified in the loan agreement. They are levied as penal charges and not as penal interest added to the rate of interest.
- Penal charges are not capitalised: no further interest is computed on them, and no fresh penal charges are levied on penal charges already outstanding.
- Penal charges are reasonable, commensurate with the non-compliance, and not discriminatory within a loan or product category. Penal charges on loans to individuals for purposes other than business are not higher than those for non-individual borrowers for similar non-compliance.
- The quantum of and reason for penal charges are disclosed in the loan agreement and the KFS. Reminders for non-compliance state the applicable penal charges, and every levy is communicated with its reason.
Prepayment and foreclosure charges
- Borrowers may prepay or foreclose their loans before the end of the tenure.
- Prepayment charges may apply depending on the loan type and tenure. Where levied on a term loan, they are calculated on the amount being prepaid.
- Applicable foreclosure charges are clearly stated in the sanction letter, the KFS and the loan agreement. No prepayment charge that has not been so disclosed will be levied.
- No charge is levied where prepayment is made at the instance of the Company, and no charge waived earlier is levied retrospectively at the time of prepayment.
Documentation charges
A nominal fee is charged for document processing, verification and execution of the loan agreement, to ensure that all legal and procedural requirements are met.
Cheque bounce charges
If a repayment cheque or mandate is dishonoured for insufficient funds or any other reason, a charge is levied to cover the administrative and processing costs incurred by the Company.
Loan cancellation charges
- If a borrower cancels the loan after approval but before disbursement, a minimal administrative charge may apply.
- If the loan has already been disbursed, applicable processing charges and interest for the period of use are recovered before cancellation.
Legal and recovery charges
If legal action is required to recover a loan because of non-payment, the borrower is liable for the legal and recovery expenses actually incurred by the Company, as provided in the loan agreement. Recovery is carried out in line with the Company's Fair Practices Code.
Other charges
Other charges, such as stamp duty, insurance premium and applicable taxes, are communicated to the borrower in advance and set out in the loan agreement. Charges collected on behalf of third parties are recovered at actuals, form part of the APR, and are disclosed separately in the KFS. No fee or charge that is not mentioned in the KFS is levied without the borrower's explicit consent.
Review
This policy is reviewed by the Board of Directors periodically and is updated on this website whenever the interest rate model or charges change.
Sunask Finance Limited is committed to transparency and to ensuring that borrowers are fully informed of all applicable charges before availing of any financial service.
Privacy notice
We collect your personal and financial information only to assess, sanction, service and recover your loan and to meet our legal obligations. It is shared only with credit information companies, the RBI, CERSAI, FIU-India and other authorities as required by law, and with service providers working on our behalf under confidentiality. We do not sell your information. To see or correct the information we hold about you, write to sunask@rediffmail.com.