LOAN AGREEMENT
This Agreement is made on [Date] between [Lender] and [Borrower]
- Parties. This Loan Agreement is executed between [Lender Name], R/o [Address] (the "Lender") and [Borrower Name], R/o [Address] (the "Borrower").
- Recitals. The Borrower has requested a loan and the Lender has agreed to advance the same on the terms recorded herein.
- Loan Amount & Consideration. The Lender shall advance a principal sum of Rs. [Amount] ([Amount in words]) to the Borrower on the Effective Date [Effective Date].
- Interest. The principal shall carry simple interest at [__]% per annum, computed from the date of disbursement until full repayment.
- Repayment & Obligations. The Borrower shall repay the loan in [__] equated monthly instalments of Rs. [Amount] each, or in one bullet payment on [Due Date], together with accrued interest.
- Prepayment. The Borrower may prepay the whole or part of the loan without penalty upon [__] days notice, with interest adjusted to the date of prepayment.
- Security. The loan is [secured by [Security/Collateral] / unsecured] and the Borrower shall not create any further charge over the said security without the Lender's consent.
- Representations & Warranties. The Borrower represents that it has full authority to borrow, that the loan shall be used for lawful purposes, and that no insolvency proceedings are pending against it.
- Confidentiality. The parties shall keep the commercial terms of this Agreement confidential save as required by law or regulatory authority.
- Events of Default. Non-payment of any instalment, breach of covenant, or insolvency of the Borrower shall constitute default, entitling the Lender to recall the entire outstanding with interest.
- Term & Termination. This Agreement remains in force until the loan with interest is fully repaid, whereupon it stands automatically discharged.
- Governing Law & Jurisdiction. This Agreement is governed by the laws of India and subject to the exclusive jurisdiction of courts at [City].
- Dispute Resolution. Disputes shall first be attempted to be settled amicably, failing which they shall be referred to arbitration under the Arbitration and Conciliation Act, 1996, seated at [City].
IN WITNESS WHEREOF the parties have signed this Agreement on the date first written above.
___
[Lender]
[Lender]
___
[Borrower]
[Borrower]
___
Witness 1: [Name & Address]
Witness 1: [Name & Address]
___
Witness 2: [Name & Address]
Witness 2: [Name & Address]