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Fair Practice Code

Last updated: March 2026  ·  Reference: RBI Master Direction DNBS.PPD.01/66.15.001/2016-17 (Fair Practices Code for NBFCs)

This Fair Practice Code ("Code") is adopted by the Board of Directors of NetZero Finance Pvt Ltd in accordance with the Reserve Bank of India's guidelines on Fair Practices Code for Non-Banking Financial Companies (Master Direction DNBS.PPD.01/66.15.001/2016-17, as amended). The Code sets out the minimum standards of conduct to be followed by the Company in its interactions with borrowers.

Section 1: Loan Applications and Processing

  1. 1.1 All loan applications are acknowledged in writing (or by email/SMS) within one working day of receipt.
  2. 1.2 The Company will communicate its decision on a loan application -- whether sanctioned, conditionally sanctioned, or rejected -- within seven (7) working days of receipt of a complete application with all required documents.
  3. 1.3 Where a loan application is rejected, the Company will provide the reason for rejection in writing. The Company is not required to provide reasons for rejection where disclosure of such reasons would adversely affect the Company's credit assessment methodology, but will disclose the primary basis for rejection (e.g., CIBIL score below threshold, income insufficient for requested loan amount).
  4. 1.4 The application process will not discriminate on the basis of religion, caste, gender, or region of origin. Loan decisions are based solely on creditworthiness and product eligibility.

Section 2: Loan Appraisal and Terms

  1. 2.1 Before disbursement of any loan, the Company will issue a loan sanction letter to the borrower. The sanction letter will contain, in plain language:
    • The approved loan amount
    • The applicable interest rate (percentage per annum)
    • The loan tenure
    • The EMI amount
    • The loan disbursement schedule
    • Any applicable fees (processing fee, documentation fee)
    • Prepayment terms
    • Consequences of default
  2. 2.2 The borrower has a right to review the sanction letter and may decline the loan within the acceptance period stated in the letter without incurring any charge.
  3. 2.3 The Company will not modify the terms of the loan sanction after it has been accepted by the borrower, except with the borrower's written consent.
  4. 2.4 All loan documents will be provided in a language understood by the borrower, or a translation will be offered.

Section 3: Disbursement of Loans

  1. 3.1 Loans will be disbursed in accordance with the terms stated in the sanction letter.
  2. 3.2 Disbursement of solar loans is typically made directly to the installer partner upon confirmation of installation completion, rather than to the borrower. This is to ensure that funds are applied to the purpose for which the loan was sanctioned.
  3. 3.3 Any change in disbursement terms from what was communicated in the sanction letter will be communicated to the borrower at least 14 days in advance.

Section 4: Interest Rate Policy

  1. 4.1 Interest rates are board-approved and based on the Company's cost of funds, credit risk of the borrower, and applicable RBI guidelines.
  2. 4.2 The Company does not charge penal interest or compound interest on any solar loan. Any overdue amount accrues simple interest at the contracted rate only.
  3. 4.3 The maximum interest rate charged by the Company will not exceed 26% per annum on any loan product.
  4. 4.4 Interest rates are disclosed on the Company's website (aerem.co/legal/nbfc-disclosures/) and in every loan sanction letter. Borrowers are entitled to request the basis for the applicable rate.

Section 5: Prepayment

  1. 5.1 Borrowers may repay the full outstanding loan amount at any time before the scheduled tenure end without penalty.
  2. 5.2 Partial prepayment is permitted. There is no minimum prepayment amount.
  3. 5.3 No prepayment charges are levied by NetZero Finance Pvt Ltd on any solar loan.
  4. 5.4 On receipt of a prepayment request, the Company will provide a pre-closure statement within 3 working days showing the amount required to close the loan.
  5. 5.5 A No Objection Certificate (NOC) will be issued within 7 working days of full loan repayment.

Section 6: Conduct of Recovery Agents

  1. 6.1 Recovery activities are conducted only during 8:00 AM to 7:00 PM on any day.
  2. 6.2 Recovery agents employed by or on behalf of the Company will identify themselves clearly, provide their name, the company they represent, and the loan reference number.
  3. 6.3 Recovery agents will not use abusive language, threaten violence, make false statements, or contact borrowers at their workplace in a disruptive manner.
  4. 6.4 Recovery agents will not contact any person who is not the borrower or guarantor, except for the purpose of serving a legal notice.
  5. 6.5 Borrowers who experience conduct by recovery agents that violates this Code may report the conduct to the Company's Grievance Redressal Officer (grievance@aerem.co). Verified complaints will result in the suspension of the relevant agent and, where warranted, termination.

Section 7: Privacy and Confidentiality

  1. 7.1 Customer financial information will be treated as strictly confidential and will be shared only as follows:
    • With credit bureaus (CIBIL), as required for all RBI-licensed NBFCs
    • With RBI and other regulatory bodies, when required by law or regulatory direction
    • With the customer's appointed installer partner (limited to loan sanction status, not financial details)
    • With technology vendors under data processing agreements that restrict use to service delivery
  2. 7.2 The Company will not share customer financial information with third parties for marketing purposes without the customer's explicit consent.
  3. 7.3 Customer data is governed by the Company's Privacy Policy, available at aerem.co/legal/privacy/.

Section 8: Grievance Redressal

  1. 8.1 The Company has established a Grievance Redressal Mechanism in accordance with RBI guidelines. Details of the mechanism, including the Grievance Redressal Officer's contact information, are available at aerem.co/legal/grievance-redressal/.
  2. 8.2 Complaints may be submitted by:
    • Email: grievance@aerem.co
    • WhatsApp: [number]
    • Post: Grievance Redressal Officer, NetZero Finance Pvt Ltd, Mumbai, Maharashtra
  3. 8.3 The Company acknowledges grievances within 3 working days and resolves within 30 working days.
  4. 8.4 If the Company does not resolve a grievance within 30 working days, or if the borrower is unsatisfied with the resolution, the borrower may approach the Reserve Bank of India's Integrated Ombudsman Scheme at cms.rbi.org.in. This escalation is free of charge and does not require a lawyer.
  5. 8.5 The Company will not penalise any customer for submitting a grievance or for approaching the RBI Ombudsman.