Lexus Financial Services is a sub-division of Toyota Financial Services India Ltd. a registered NBFC in India.


    The Reserve Bank of India (“RBI”) has drafted guidelines on Fair Practice Code for Non Banking Finance Companies (“NBFC”) which sets out the fair practices standards when dealing with customers and to serve as a part of best corporate practice. Pursuant to the RBI circular number DNBS (PD) CC No. 80/03.10.042/2005-06 dated 28 September 2006 further complemented by RBI Master Circular DNBS (PD) CC No. 232/03.10.042/2011-12 dated 1 July 2011 and revised guidelines issued vide circular No.RBI/2011-12/470 DNBS. CC. PD. No.266/03.10.01/ 2011-12 dated March 26, 2012 , No.RBI/2012-13/416DNBS.CC.PD.No.320/03.10.01/2012-13 and No RBI/2014-15/34/DNBS (PD) CC No.388/03.10.042/2014-15 dated July 01, 2014,Toyota Financial Services India Limited (referred to as “TFSIN”) has formulated this Fair Practices Code (“Code”) to lay down the procedures/practices in in relation to its lending activities.This Code shall apply across all aspects of TFSIN’s operations including all products and services currently offered by us and those that may be introduced at a later date.


    • It is, and shall be, our policy to make financial products available to all qualified applicants without discrimination on the basis of race, caste, colour, religion, sex, marital status, age or handicap. Our policy is to treat all our clients consistently and fairly.
    • Our employees will offer assistance, encouragement and service in a fair, equitable and consistent manner. We will also communicate the Code to the public by publishing it on TFSIN’s website.
    • We shall ensure that charges/fees which affect the interest of the prospective borrowers are appropriately informed to the borrowers by including the same in the loan agreement and also providing clear information to them regarding the same in person.
    • Terms and conditions pertaining to the loan will be conveyed to the prospective borrowers. We commit that disputes arising out of the lending decisions will be appropriately resolved by a grievance redressal mechanism set up by us
    • We will ensure that the Code is implemented at all levels within TFSIN. TFSIN’s fair lending practices shall apply across all aspects of our operations including marketing, loan origination, processing, servicing and collection activities. Our commitment to the Code would be demonstrated in terms of employee accountability, monitoring and auditing programs, training and technology.
    • TFSIN’s Board of Directors and the management team is responsible for establishing practices designed to ensure that the products and services offered reflect our strong commitment to fair lending and that all employees are aware of that commitment.
    • The Code will be available on our website and copies will be made available on request.
    • We will ensure that all advertising and promotional material is clear, fair, reasonable and not misleading.
    • The practice which TFSIN promises to follow in its dealings with its customers are:
      • TFS shall act fairly and reasonably in all dealings with its customers by ensuring that:
        • Its products, services, procedures and practices meet the commitments and standards set out in this Code.
        • Its products and services will comply with relevant laws and regulations as applicable.
        • Its dealings with its customers will rest on ethical principles of honesty, integrity and transparency.
      • TFS will assist customers in understanding the manner in which its financial products and services work by
        • Providing information about the products and services in simple Hindi and/or English and/or the local language
        • Explaining the terms and conditions applicable to the products and services; and
        • Helping the customer choose a product/ service that meets his / her needs. TFS will make every attempt to ensure that its customers have a smooth experience in dealing with it; TFS will deal with any complaint that the customer may have quickly. In case a customer is not satisfied with the way a complaint is handled, TFS will guide the customer on how to take the complaint forward.

    This Code applies to products and services currently offered or which may be introduced at a future date: The products/ services presently offered by TFS include:

    • Retail financing and leasing.
    • Dealer inventory financing
    • Hire Purchase, Installment sale, asset credit

    The Code is applicable to the above irrespective of whether the product/ service is provided at the Branch, on the internet or by any other method we may be currently using or may introduce at a future date.

    • Applications for Loans and their processing
      • All communications to the borrower shall be in the vernacular language or a language as understood by the borrower
      • Loan application forms/ explanations to be provided at the Dealership will include necessary information, which affects the interest of the borrower, so that a meaningful comparison with the terms and conditions offered by other NBFCs can be made and informed decision can be taken by the borrower
      • The loan application form will indicate the documents required to be submitted with the application form.
      • TFS will devise a system of giving acknowledgement for the receipt of all loan applications and will also indicate a time frame within which loan applications will be processed in the acknowledgement.
      • Loan Application form will clearly state the information that TFSIN requires to collect from the customer to fulfill the KYC norms and to comply with legal and regulatory requirements. Additional information may be requested about the customer and his /her family to build a database; but this information is furnished by the customer only if she /he wish to do so
      • In the case of rejection of such applications, TFSIN will convey in writing the main reason / reasons which, in the opinion of TFSIN after due consideration, have led to the rejection of the loan application.
    • Loan appraisal and terms/conditions
      • Before lending money, or any other borrowing, we will assess the ability of the customer (borrower) to repay
      • TFSIN will convey in writing to the borrower in the vernacular language as understood by the borrower by means of sanction letter or a loan agreement, the amount of loan sanctioned along with the terms and conditions including annualized rate of interest and method of application thereof, whether repayable on demand or otherwise, procedure for repossession of vehicle in case of default etc.
      • TFSIN will provide a copy of the loan agreement along with a copy each of all enclosures quoted in the loan agreement to all the borrowers at the time of sanction / disbursement of loans. TFSIN will keep the acceptance of these terms and conditions by the borrower on its record. All terms and conditions of the loan agreement will be fair and will set out the customer’s rights and responsibilities clearly and in plain language. A copy of the loan agreement along with a copy each of all enclosures quoted in the loan agreement in the vernacular language as understood by the borrower shall be provided to all borrowers at the time of sanction/ disbursement of loans. TFSIN shall make sure that the borrowers at the time of sanction of loans are fully aware of the terms and conditions of the loans including rate of interest.
      • The Company shall make sure that the penal interest to be charged on late repayment shall be indicated in the loan agreement in bold
    • Disbursement of Loans including changes in terms and conditions
      • TFSIN will give notice to the borrower of any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges, cheque bounce charges, swap charges, late payment penalty etc. which are applicable to the loan availed by the borrower. Such changes in interest rates and charges shall be effected prospectively. A suitable condition in this regard will be incorporated in the loan agreement.
      • Decision to recall / accelerate payment or performance under the agreement will be in consonance with the loan agreement and shall be suitably communicated to the borrower.
      • TFSIN will release all securities on repayment of all dues or on realization of the outstanding amount of loan subject to any legitimate right or lien for any other unsettled claim which TFSIN may have against the borrower. If such right of set off is to be exercised, the borrower will be given a notice about the same with full particulars about the remaining claims and the conditions under which TFSIN is entitled to retain the securities till the relevant claim is settled/ paid.
    • General
      • TFSIN will refrain from interference in the affairs of the borrower except for the purposes provided in the terms and conditions of the loan agreement (unless new information, not earlier disclosed by the borrower, has come to the notice of the lender).
      • In case of receipt of request from the borrower for transfer of borrowal account, the consent or otherwise i.e. objection of the company, if any, will be conveyed within 21 days from the date of receipt of request. Such transfer shall be as per the terms set out in the loan agreement and in consonance with law
      • TFSIN’s collection policy will be based on fair treatment, courtesy and persuasion. Under no circumstances, will TFSIN resort to undue harassment of the customer viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans etc.
      • The Company will make sure that its staff are well trained to adequately deal with the customers in an appropriate manner
    • Complaints / Grievance Redressal Mechanism:

      A complaint will mean an expression of dissatisfaction made to TFSIN by any borrower or someone legally representing their interests, about our products, services or our complaint-handling process, where a response or resolution is explicitly or implicitly expected. All complaints/disputes arising out of the decisions of the functionaries in relation to the products and services shall be heard and disposed off at least at the next higher level. The Board of Directors shall also provide for periodical review of the compliance of this Code and the functioning of the grievance redressal mechanism at various levels of management. A consoli report of such reviews may be submitted to the Board at regular intervals, as may be prescribed by it.

      In case of any complaint/grievance, the applicant/borrowers may, in writing, inform TFSIN, the nature of their complaint/ grievance. TFSIN shall then immediately take up the matter for redressal.

      Mr. Akihiko Sekiguchi, CFO & Senior Vice President (Business Strategy), Toyota Financial Services India Limited, No.21, Centropolis, First Floor, 5th Cross, Langford Road, Shanti Nagar, Bangalore, Karnataka, 560025,Tel: 080-43442856, Emailaddress:grievanceredressalofficer@tfsin.co.in is the Grievance Redressal Officer under the Fair Practice Code who can be approached by the public for resolution of complaints against the Company.

      If the complaint / dispute is not redressed within a period of one month, the customer may appeal to the Officer-in-Charge of the Regional Office of Department of Non-Banking Supervision (DNBS), Reserve Bank of India, 10/3/8, Nrupathunga Road, Bangalore -560 001, Karnataka, Tel:080 2221289, under whose jurisdiction the registered office of the Company falls.

      For the benefit of our customers, the above information on “grievances” is also displayed at our branches / places where business is transacted.

      The hierarchy of the officials who shall redress any complaint/ grievance shall be as follows:

      Decision Level Redressal Level
      Relationship Manager Zonal Head
      VP/AVP Zonal Head Senior VP, Sales & Marketing or Senior VP, Operations
      All Others MD & CEO
    • Interest Rates
      • TFSIN shall lay down the appropriate internal principles and procedures in determining interest rates and processing and processing charges;
      • TFSIN will adopt an interest rate model taking into account relevant factors such as, cost of funds, margin and risk premium etc for determining the rate of interest to be charged for loans and advances;
      • At the time of availing of a loan, TFSIN will provide the customer with information on when the interest will be debited to the account. The rate of interest charged will be annualized, and will be informed to the borrowers so that the borrowers are aware of the exact rates that would be charged to the account. The rates of interest and the approach for gradation of risks and rationale for charging different rate of interest to different categories of borrowersshall be disclosed to the borrower or customer in the application form and shall also be made available on the website of TFSIN or published in the relevant newspaper;
      • In case of change in the interest rate, the rate shall be published on the website of the Company;
      • The loan agreement shall contain sufficient information about interest, charges etc. The borrower shall be informed regarding any change in the charges or introduction of a new charge etc;
    • Charges

      Details regarding the charges applicable to products and services chosen by the customer shall be made available on the website of the Company

    • Repossession of vehicles financed by TFSIN
      • TFSIN will have built in re-possession clauses in the contract/loan agreement with the borrower which will be legally enforceable.
      • TFSIN will incorporate the following terms and conditions relating to repossession in the contract/loan agreement:
        • notice period before taking possession
        • circumstances under which the notice period can be waived
        • the procedure for taking possession of the security
        • a provision regarding final chance to be given to the borrower for repayment of loan before the sale / auction of the property.
        • the procedure for taking repossession from the borrower
        • the procedure for sale / auction of the property
      • A copy of such terms and conditions must be made available to the borrowers in the loan agreement
    • Confidentiality
      • Unless authorized by the customer we will treat all personal information of the customer as private and confidential
      • Unless authorized by the customer, we will not reveal transaction details to any other entity including other than the following exceptional cases:
        • If we have to provide the information under statutory or regulatory laws
        • If there is a duty to the public to reveal this information
        • If our interest requires us to provide this information (eg fraud prevention) to Banks / Financial Institutions/ our Group and Associate companies/ service providers/ companies with which TFSIN has tie up arrangements
    • Feedback and Suggestions

      We request our customers to provide feedback on our service to help us to improve our services. Please feel free to provide your comments and valuable suggestions to customerfirst@lexusfinance.co.in

    • Monitorings

      We have a Compliance Officer to ensure compliance of the Code. Our internal control procedures make sure that we meet the Code.