Fair Practice Code for Lenders

Acknowledgement for Loan Applications

Written acknowledgement for all Loan Applications received will be issued immediately on receipt of loan application and if additional information/documents are needed, the applicant would be advised to submit the same within 15 days of the receipt of the communication from VTB Bank.

Processing of Loan Applications

  1. Preliminary examination of the proposal for financing or otherwise would preferably be completed within 15 days from the date of receipt of the proposal or receipt of such additional information/ documents sought from the borrower.
  2. All new fund-based and non-fund based proposals are to be referred to the Management Committee for taking preliminary decision on the proposal after examining it
  3. Cases approved, in-principle, by Management Committee will be taken up for further processing including site visit/detailed appraisal. After completion of appraisal /site visits and finalization of the appraisal reports, proposals which are found technically feasible and financially viable will be placed before the Sanctioning Authority for consideration generally within 30 days from the date of site visit/furnishing of such additional information/ documents, as might be required. The LOI giving the details of terms and conditions would be issued immediately after the sanction is made by the competent authority.
  4. JSC VTB Bank shall keep the borrower's acceptance of LOI on record wherein all the terms and conditions are given.

Disbursement of Loan

The request of the borrower for disbursement of loan will be processed immediately and disbursement would be made after execution of documents and creation of stipulated security within 15 days after receipt of request along with necessary documents/papers. A copy of the loan agreement executed would be handed over to the borrower concerned.

As desired by RBI, the loan agreement stipulates that financial assistance to the borrower is solely at the discretion of the lender and lender does not have any obligation to meet further requirements of the borrower on account of overrun or any other reason as well as an undertaking is taken from the borrower/ promoter to meet any overrun/ shortfall in funds without looking to the lender.

Change in Terms and Conditions

Borrower would be given due notice, if terms and conditions or covenants of the loan agreement are proposed to be amended and the same would be effected only thereafter/ prospectively.

Post Disbursement Supervision

Supervision by VTB Bank would be constructive with a view to take care of any lender related genuine difficulty i.e. borrower may face. Before taking a decision to recall /accelerate payment or performance under the agreement or seeking additional securities, VTB Bank would give notice to borrowers, as specified in the loan agreement or a reasonable period.

Lending under Consortium Arrangement

In case of Consortium Finance, Letter of Intent/ rejection for our share would be issued within 15 days of the receipt of request from the borrower along with complete information.

Release of Securities on Receipt of Payment

Securities provided for availing the assistance would be released normally within 15 days from the date of request of the borrower provided there is no legitimate claim against Borrower or its group accounts . In case of joint mortgage, release of documents would be done after obtaining "NOC" from the other lenders/ charge holders.

Transfer of Account

Consent or otherwise for Transfer of borrower account to another Bank/ Fl is to be issued normally within 21 days from the date of request from borrower/ Bank/ Fl, subject to payment of premium, if applicable, for foreclosure of the outstanding facilities and compliance of other terms and conditions.


  1. VTB Bank would restrain from interference in the affairs of the borrowers except for what is provided in the terms and conditions of the loan sanction documents unless new information, not earlier disclosed by the borrower, has come to the notice of the VTB Bank.
  2. VTB Bank would not discriminate on grounds of sex , caste, creed and religion in the matter of lending. However, this does not preclude VTB Bank from participating in credit-linked schemes framed for weaker sections of the society.
  3. In the matter of recovery of loans, VTB Bank would not resort to undue harassment viz. Persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans, etc

Grievances - Redressal Mechanism

As advised by RBI to lay down grievances redressal mechanism to resolve disputes between lenders and the borrower, it is proposed that the borrower/ applicant can approach directly the Chief Executive Officer of Management Committee of VTB Bank will conduct Half Yearly review preferably in March and September every year of the fair practices code and the functioning of grievances redressal mechanism. Half Yearly report of such review would be placed before Management Committee of JSC VTB Bank New Delhi.

Contact Information

JSC VTB Bank New Delhi Branch:

+ 91-11-66221000

+ 91-11-66221024

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