We at ENCOT bind ourselves to the international protocol on the protection of microfinance clients. In all our business undertakings, we shall ensure to undertake concrete steps to protect our clients from potentially harmful financial products, poor business practices and ensure that they are treated fairly. We collectively guarantee to do this through appropriate policies, practices, and products.

Six Minimum Standards we commit to observe:

• (i) Avoidance of Over-Indebtedness

  We’ll take reasonable steps to ensure that credit will be extended only if borrowers have demonstrated an adequate ability to repay and that loans will not put borrowers at significant risk of over-indebtedness. Similarly, we’ll take adequate care to ensure that noncredit financial products (such as insurance) extended to low-income clients are appropriate.

• (ii) Transparent Pricing

  The pricing, terms, and conditions of financial products (including interest charges, insurance premiums, all fees, etc.) will be transparent and will be adequately disclosed in a form understandable to clients.

• (iii) Appropriate Collections Practices

  Our debt collection practices shall not be abusive and/or coercive. We’ll always endeavor to protect the dignity of the client and give first priority in exhausting available social means to debt collection before resorting to legal recourse to debt collection.

• (iv) Ethical Staff Behavior

  Our staff member and collaborating partners will comply with high ethical standards in their interaction with our clients and as an organization we’ll ensure that adequate safeguards are in place to detect and correct corruption or mistreatment of clients

• (v) Mechanisms for Redress of Grievances

  We’ll have in place timely and responsive mechanisms for complaints and problem resolution for our clients.

• (vi) Privacy of Client Data.

  The privacy of individual client data will be respected, and such data shall not be used for other purposes without the express permission of the client or as may be mandated by law in executing issues regarding this client (while recognizing that we play an important role in helping clients achieve the benefits of establishing credit histories).