PRASAC Client Protection Principles

The Client Protection Principles describe the minimum protection clients should expect from PRASAC. These Principles are adopted from the CGAP’s Client Protection Principles. These principles are used to protect the clients and as well as PRASAC’s image, therefore, PRASAC’s staff of all levels should adhere to the following the Client Protection Principles.

1.No Discrimination in Operation.

PRASAC and its staff will give loan based on the repayment capacity of the particular client by not depending on any race or any tendency.

2.Avoidance of Over-Indebtedness:

PRASAC will take reasonable steps to ensure that credit will be extended only if borrowers have demonstrated an adequate ability to repay and loans will not put borrowers at significant risk of over-indebtedness.

3.Transparent Communication:

The pricing, terms, and conditions of financial products (including interest charges, penalty, all fees, etc.) will be transparent and will be adequately disclosed in a form understandable to clients. PRASAC will educate and clearly communicate to the clients about the consequences of the over-indebtedness.

4.Appropriate Collections Practices:

Debt collection practices will not be abusive or coercive. Debt collection process must follow the collection procedures which are legally correct and binding.

5.Ethical Staff Behavior:

PRASAC will comply with high ethical standards in their interaction with clients and ensure that adequate safeguards are in place to detect and correct corruption or mistreatment of clients.

6.Mechanisms for Redress of Grievances:

PRASAC has to be in place timely and responsive mechanisms for complaints and problem resolution for its clients

7.Privacy of Client Data:

The privacy of individual client data will be respected, and such data cannot be used for other purposes without the express permission of the client.