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Bank
of Bahrain & Kuwait (the Bank) has adopted the following
Fair Practice Code in respect of its lending activities.
FAIR
PRACTICES :
Product
Information :
A
prospective customer would be given all the necessary information
adequately explaining the range of loan products available
with the bank to suit his needs.
The
customer would be explained the process involved for sanction
and disbursement of loan and would be informed of the timeframe
within which the bank would complete all the processes.
The
customer would be informed the procedure involved in servicing
and closure of the loan taken.
Application
for loans and their processing :
- For the
retail customers, the Bank would have the loan application
forms containing information about the fees/charges
payable for processing, repayment options so that a
meaningful comparison can be made by the prospective
borrowers to enable them to take an informed decision.
- For retail
loans while giving an acknowledgement for receipt of
all loan applications, the Bank would indicate the time
frame within which the loan application containing full
information / details / documents would be disposed
off.
- For Corporate
and SME borrowers, credit facilities are provided based
on customer selection and risk assessment for these
segments. Thus for this segment the Bank does not have
any prescribed standardized application forms to be
submitted by the prospective customers.
- After
verifying the documents, in case additional details
/ information / documents are required the Bank would
intimate the borrower immediately.
- The Bank
would convey to the borrower the credit limit sanctioned
along with the terms and conditions thereof and obtain
his specific acknowledgement for the same. While conveying
approval the Bank would request the borrower to specifically
inform the Bank in writing whether he would need a copy
of the loan agreement along with copies of all enclosures
quoted therein and wherever such requests are made the
same should be made available.
- The Bank
would convey in writing the reasons to all loan applicants,
which in the opinion of the Bank after due consideration,
have led to rejection of the loan application.
Disbursement
of loans including changes in terms and conditions :
- Drawing
beyond the sanctioned limit / honoring the cheques issued
for the purpose other than specifically agreed to in
the credit sanction / disallowing drawings on a borrowal
account on its classification as a non performing asset
or on account of non compliance with the terms and conditions
of sanction etc. would be solely at the discretion of
the Bank. Any enhancement of credit limits is at the
discretion of the Bank after taking a review of the
credit limits sanctioned.
- The
Bank would ensure timely disbursement of loans sanctioned
in conformity with the terms and conditions of the sanction.
- The
Bank would give notice of any changes in terms and conditions
to the borrower concerned. In respect of interest rates
and service charges etc., the Bank would give notice
to the borrowers in respect of any change in the interest
rates / service charges. The Bank would also ensure
that the changes in interest charges are effected only
prospectively.
- The
Bank would notify clearly about the default interest
/ penal interest rate to the customer.
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