1. Introduction

Abrus Krishna Finance operates as a licensed and legally compliant money-lending institution under the Kerala Money-Lenders Act, 1958 (KML Act) and the Kerala Money-Lenders Rules, 1960.
All lending activities—including product structuring, documentation, interest charging, pledge handling, collections, and customer interactions—strictly follow the provisions mandated by the Government of Kerala.

Our commitment to compliance ensures transparent operations, responsible lending, lawful recovery practices, fair treatment of customers, and proper statutory reporting to the concerned authorities.

2. Statutory Registration

Abrus Krishna Finance is authorised to conduct lending operations only after securing the mandatory:

• KML Money Lending License issued by the respective District Authorities (as applicable)
• Renewal of License on an annual basis before the statutory deadline
• Display of License at the registered branch premises as required under Section 6 of the KML Act

Every branch display:

• The original Money Lending License
• Validity period
• Name and address of the licensee
• Government seal and issuing authority details

This ensures complete transparency for all customers entering our premises.

3. Regulatory Framework We Follow

Our financial services and operational processes adhere to:

Applicable Laws

• Kerala Money-Lenders Act, 1958
• Kerala Money-Lenders Rules, 1960
• Kerala Stamp Act
• Indian Contract Act, 1872
• Indian Penal Code provisions applicable to fraud, misrepresentation, and forgery
• Consumer Protection Act, 2019
• Guidelines issued by local authorities from time to time

Core Compliance Principles

• Legal KYC verification
• Proper execution of stamped, KML-compliant loan agreements
• Transparent display of interest rates and charges
• Statutory maintenance of registers, ledgers, and pledge records
• Safe custody and proper sealing of pledged assets (for Gold Loans)
• Mandatory issuance of receipts for every transaction
• Ethical and lawful recovery practices

4. Interest Rates & Charges (KML-Compliant)

Under the KML Act, lenders must follow strict rules regarding:

• Mode of charging interest
• Maximum permissible rates (as notified by the State Government)
• Transparent disclosure of applicable interest
• Prohibition of compound interest in certain cases
• No hidden or unauthorized charges

Abrus Krishna Finance adheres to:

• Fair and reasonable interest structures
• Clearly disclosed terms in the loan agreement
• Written display of interest rates within the branch
• Providing interest calculation details upon customer request

We do not levy:

• Hidden processing charges
• Unauthorized penalties
• Unapproved service fees

5. Documentation & Loan Agreements

Every loan disbursed by Abrus Krishna Finance is supported by:

• KYC Verification
  – Aadhaar, PAN, Voter ID, Driving License, Passport, or other accepted ID proof
  – Proof of residence
• Signed Loan Agreement
  – Mandatory branch visit for signing
  – Document executed on applicable stamp paper
  – Contains all statutory disclosures

Mandatory Branch Visit (KML Rule)

Even if loan initiation happens online or at doorstep, the customer must visit the branch once for:

• KYC verification
• Signature in the agreement
• Completion of contract formalities

This ensures compliance with Kerala’s physical-signing requirement under money lending laws.

6. Registers, Records & Audit Compliance

Abrus Krishna Finance maintains all statutory registers as required under the KML Act, including:

• Loan Register
• Receipt Register
• Pledge Register (for Gold Loans)
• Interest Register
• Daily Collection Register

All entries are:

• Made contemporaneously
• Preserved for audit
• Produced upon request during inspection by government officials

Periodic statutory audits ensure that every loan disbursed complies with State norms.

7. Safe Custody of Pledged Gold (As Applicable)

Gold pledged for loans is stored following industry-leading security standards:

• Tamper-proof sealing
• Itemized classification and documentation
• High-security vault storage
• CCTV surveillance
• Dual-control access protocols
• Fire & disaster-proof infrastructure
• Insurance coverage as applicable

Every movement of pledged gold is recorded in:

• Vault movement logs
• Pledge registers
• Customer acknowledgement receipts

No pledged asset is ever removed, accessed, or handled without authorised dual verification.

8. Recovery & Collection Practices

Abrus Krishna Finance follows ethical, non-coercive, and lawful recovery standards:

• No harassment or intimidation
• No unauthorised visits to customers
• No use of external recovery agents without consent
• No verbal or physical pressure
• Only written and telephonic reminders within permissible hours

We strictly follow:

• Consumer Protection norms
• KML restrictions
• Responsible lending and recovery guidelines

9. Customer Rights & Transparency

We ensure customers receive:

• Complete clarity on loan terms
• A copy of the signed loan agreement
• Receipts for payments
• Clear schedules for interest & repayment
• Access to loan statement upon request
• Transparent process for renewal or closing of loans

Customers are educated on:

• Their rights
• Their responsibilities
• Do’s and Don’ts under KML
• Safe borrowing practices

10. Periodic Compliance Review

Our compliance team conducts regular inspections covering:

• Branch level auditing
• Accounting & document verification
• Gold handling protocol checks
• Loan agreement compliance
• KYC correctness
• Register maintenance
• Display of statutory notices

This ensures ongoing conformity to KML requirements.

11. Commitment to Ethical & Legal Lending

Abrus Krishna Finance is built on values of:

• Transparency
• Fairness
• Compliance
• Responsible lending
• Customer-first operations

We ensure every transaction is:

• Legally documented
• Ethically executed
• Fully aligned with Kerala’s money-lending laws