Professional Code of Conduct

INTEGRITY

We agree to—

⦿ Act honestly, fairly and reasonably in conducting microfinance activities.

⦿ Conduct our microfinance activities by means of fair competition, not seeking competitive advantages through illegal or unethical microfinance practices. No officer, employee, agent or other person acting on our behalf shall take unfair advantage of anyone by manipulation, concealment, abuse of privileged information, misrepresentation of material facts or any other unfair practice.

⦿ Ensure that our staff and any person acting for us or on our behalf, are trained or oriented to put these values into practice.

TRANSPARENCY

We agree to—

⦿ Disclose to clients all the terms and conditions of our financial services offered in the language understood by the client.

⦿ Disclose the source of funds, costs of funds and use of surpluses to provide truthful information to clients.

⦿ Provide information to clients on the rate of interest levied on the loan, calculation of interest (monthly/quarterly/half-yearly), terms of repayment, and any other information related to interest rates and other charges.

FAIR PRACTICES

• ⦿ We are committed to follow fair practices built on dignity, respect, fair treatment, persuasion and courtesy to clients.
• ⦿ We agree to provide micro finance services to low income clients irrespective of gender, race, caste, religion or language.
• ⦿ Ensure that the services are provided using the most efficient methods possible to enable access to financial services by low income households at reasonable cost.
• ⦿ Interact with the clients in an acceptable language and dignified manner and spare no efforts in fostering clients’ confidence and long-term relationship.
• ⦿ Maintain decency and decorum during the visit to the clients’ place for collection of dues.
• ⦿ Avoid inappropriate occasions such as bereavement t in the family or such other calamitous occasions for making calls/visits to collect dues.
• ⦿ Scrupulously avoid any demeanor that would suggest any kind of threat or violence.

GOVERNANCE

We agree to—

• ⦿ Observe high standards of governance, ensuring fairness, integrity and transparency by inducting persons with good and sound reputation, as members  of Board of Directors. We shall ensure that the majority of the directors are independent directors and/or duly elected representatives of the community we serve, and that we will involve the Board in all policy formulation and other important decisions.
• ⦿ Ensure transparency in the maintenance of books of accounts and reporting/ presentation and disclosure of financial statements by qualified auditor/s.
• ⦿ Place before the Board of Directors, a compliance report indicating the extent of compliance with this Voluntary Mutual Code of Conduct, specifically indicating any deviations and reasons therefore, at the end of every half financial year.

FEEDBACK/ GRIEVANCE MECHANISMS

We agree to—

• ⦿ Establish effective and efficient feedback mechanism
• ⦿ Take steps to correct any errors and handle complaints speedily and efficiently.