Personal Loan Terms & Conditions

Definitions

Schedule 1 contains a list of defined terms for this Agreement. it also contains rules of construction.

Advance

The Facility is to be utilised by way of advances (each an Advance and together the Advances).

Amount

The maximum aggregate amount of the Advances shall not exceed the Facility Amount.

Purpose

Each Advance may only be used for the purpose set out in the Credit Application Form.

Repayment, prepayment and cancellation:

  1. The Borrower must repay each Advance, together with the accrued interest, on the dates and in the amounts as set out in the Credit Application Form.
  2. Any repayment under this Agreement at any time shall be made together with accrued interest on the amount repaid.
  3. The Borrower may not repay or prepay all or any part of the Advance or cancel all or any part of the Facility Amount.
  4. The Borrower agrees that the repayment of all amounts in respect of each Advance together with interest, further interest, additional interest, Default Interest and all such other sums due and payable by the Borrower to the Lender shall be payable at the place where the branch of the Lender is situated or such other place notified by the Lender to the Borrower by any of the following modes: (a) Cheque; (b) Electronic Clearing System; (c) Standing Instructions; (d) Debit notes/bills raised by the Lender; (e) ACH; or (f) such other mode(s) as may be specified by the Lender.
  5. The Borrower shall not be entitled to and shall not attempt to, cancel or issue stop-payment instructions or in any manner, postpone the presentation of the Cheques (if any) for any reason whatsoever. In the event the Borrower acts contrary to the provisions during the term of this Agreement, the same shall be automatically deemed to be null and void and the Lender shall not be liable to acknowledge any such communication. Any such act by the Borrower shall be deemed to have been committed with malafide intentions on the part of the Borrower and to avoid prosecution under the Negotiable Instruments Act, 1881, and the Lender shall be entitled to initiate appropriate criminal proceedings against the Borrower.
  6. The Borrower shall, if required by the Lender, for any reason whatsoever, promptly within 7 (seven) calendar days, replace the Cheques and/or any other instrument(s) executed by the Borrower towards payment/repayment of instalment(s) due to the Lender, and issue/execute fresh Cheques and/or the relevant instrument(s) (as may be applicable) in lieu thereof to the satisfaction of the Lender.
  7. The Borrower may, subject to prior written approval of the Lender, be permitted to swap/exchange the Cheques and/or such other instrument(s) executed in favour of the Lender in relation to the repayment of instalment(s) with alternative Cheques and/or such other instrument(s) drawn on another bank, which shall be approved by the Lender, subject to payment of “swap charges” to the Lender.

Interest

  1. Interest on each Advance will accrue at the percentage rate per annum as specified in the Credit Application Form, provided always that the Lender and subject to applicable directives of the RBI, shall be entitled to revise the interest rate and the Borrower hereby agree to be bound by such revised or modified interest rate.
  2. Accrued interest on an Advance is payable on each Interest Payment Date. If an Interest Payment Date would otherwise fall after the Maturity Date, it will be brought forward to fall on the Maturity Date.
  3. If the Borrower fails to pay on the due date any amount payable by it under a Finance Documents, interest shall accrue on the overdue amount from its due date up to the date of actual payment (both before and after judgment) at an additional rate of 2%. In such event, the Borrower shall also be liable to pay incidental charges and costs to the Lender .

Payments

  1. All payments by a Party under any Finance Document are to be made in immediately available funds on the due date to a designated account in the country of the relevant currency. Payments by the Borrower must be made without set-off or counterclaim and without any withholding or deduction.

Representations and warranties:

The Borrower(s) hereby represent and warrant that:

  1. The information and the details provided by the Borrower in the Credit Application Form, the Finance Documents and all other documents that may have been submitted by the Borrower to the Lender and, in particular, about the address, income, credit worthiness (including loans from other lenders), and/or the purpose(s) for which each Advance is to be utilized, are true and correct and nothing material has been concealed therefrom.
  2. The obligations expressed to be assumed by it in each Finance Document are, legal, valid, binding and enforceable obligations.

Information:

The Borrower must deliver to the Lender:

  1. its annual audited direct tax returns, if required by the Lender;
  2. information required by the Lender to enable it to carry out and be satisfied with the results of all customer due diligence requirements; and
  3. promptly when requested such further information regarding the financial condition and operations of the Borrower as the Lender may reasonably request.

General Covenants:

The Borrower hereby undertakes and covenants with the Lender as under:

  1. that the Borrower shall within two (2) days of change in its particulars as have been submitted to the Lender, including and not limited to the addresses, whether residential and/or office address, and change in the authorised signatories of the Borrower, inform the Lender, in writing of such modified details. The Borrower shall in such a case submit the KYC documents to the Lender.
  2. The Borrower understands that as a pre-condition, for the granting of the Facility to the Borrower pursuant to the Finance Documents, the Lender requires the Borrower’s consent for the disclosure by the Lender of information and data relating to the Borrower, of the Facility availed of/to be availed by the Borrower, obligations assumed/to be assumed, by the Borrower in relation thereto and default, if any, committed by the Borrower, in discharge thereof. Accordingly, the Borrower agrees and give consent for the disclosure by the Lender of all or any of such:
    1. information, documents and data relating to the Borrower and/or the Finance Documents to the RBI, the Income Tax Authorities, Credit Bureaus, Credit Rating Agencies, Courts and/or any such statutory or other authorities;
    2. the information and/or data relating to any credit facility availed of/to be availed, by the Borrower, and
    3. default, if any, committed by the Borrower, in discharge of the Borrower’s obligation, as the Lender may deem appropriate and necessary, to disclose and furnish to Credit Information Bureau (India) Ltd. (“CIBIL”) and/or any other agency authorized in this behalf by RBI.
  3. The Borrower agrees and gives consent that: (a) the CIBIL and any other agency so authorized may use, process the said information and data disclosed by the Borrower to the Lender in the manner as deemed fit by the them; and (b) the CIBIL and any other agency so authorized may furnish for consideration, the processed information and data or products thereof prepared by them, to the Lender, to the Lender’s authorized financial institutions and other credit grantors or registered users, as may be specified by the RBI in this behalf.
  4. The Borrower has, simultaneously with the execution of this Agreement, executed a promissory note dated on or about the date hereof (“DPN”), payable on demand which is duly signed and delivered by the Borrower to the Lender as collateral security for repayment of the Outstanding Amount to the Lender. Further, the Borrower hereby irrevocably and unconditionally agrees and confirms as follows:
    1. the DPN shall operate as continuing security to the Lender for repayment of the ultimate balance and/or all sums remaining unpaid now or hereinafter, including all interest which has become payable in respect of/under the Facility or which may in future be advanced; and
    2. till the Final Settlement Date, the Borrower shall remain liable on the DPN notwithstanding payment made from time to time or the Outstanding Amount being reduced or extinguished from time to time or even if the balance in the account may be in credit.
  5. The Borrower shall comply in all respects with all laws to which it may be subject, if failure so to comply would materially impair its ability to perform its obligations under the Finance Documents to which it is a Party.

Payments

  1. All payments by a Party under any Finance Document are to be made in immediately available funds on the due date to a designated account in the country of the relevant currency. Payments by the Borrower must be made without set-off or counterclaim and without any withholding or deduction.

Representations and warranties:

The Borrower(s) hereby represent and warrant that:

  1. The information and the details provided by the Borrower in the Credit Application Form, the Finance Documents and all other documents that may have been submitted by the Borrower to the Lender and, in particular, about the address, income, credit worthiness (including loans from other lenders), and/or the purpose(s) for which each Advance is to be utilized, are true and correct and nothing material has been concealed therefrom.
  2. The obligations expressed to be assumed by it in each Finance Document are, legal, valid, binding and enforceable obligations.

REMEDIES FOR THE LENDERS:

  1. If one or more of the Events of Default shall have occurred, then, the Lender, by a reasonable written notice to the Borrower, shall be entitled to recall the entire Outstanding Amount.
  2. Occurrence of any one or more of the following would be treated as an event of default ("Events of Default").
    1. The Borrower does not pay on the due date, any amount due and payable pursuant to the Finance Documents at the place at, and in the currency in which, it is expressed to be payable.
    2. Any representation or statement made or deemed to be made by any person (other than by the Lender) in the Finance Documents or any other document delivered by or on behalf of any person under or in connection with any Finance Document is or proves to have been incorrect or misleading in any respect when made or deemed to be made.
    3. Breach of any terms of the Finance Documents (other than those referred to in Clause 11(b)(i) (Non-payment) by the Borrower, which will be an Event of Default, if capable of remedy is not remedied within a period of 5 (five) Business Days of its occurrence.
    4. It is or becomes unlawful for the Borrower to perform any of its obligations under the Finance Documents.
    5. Any steps are taken with a view to make the Borrower insolvent or bankrupt or for protection against creditors or the Borrower, being a company, goes into liquidation or has a receiver appointed in respect of its/their assets.
    6. Any instruction is given by the Borrower for stop payment with respect to any of the repayment cheques (if any) and/or EDI for any reason whatsoever;
    7. any circumstances exists or arise which in the opinion of the Lender gives rise to an opinion that the Borrower may not be able to pay the Outstanding Amounts or the Parties may not be in a position to recover the same in future unless immediate remedial steps are taken; or
    8. the Borrower committing a default under any other loan/credit facility or agreement or contract availed/entered into by Borrower with the Parties, its affiliates and group companies or any third party and the same not being remedied to the satisfaction of the Lender within such time as the Lender may in its absolute discretion specify;

TERMINATION:

  1. The Lender reserves the right to terminate this Agreement without assigning any reason whatsoever, with a 10 (ten) days written notice forthwith and be entitled to recall Outstanding Amounts, as the case may be, together with all applicable charges as immediately payable to the Lender from the Borrower.
  2. On the occurrence of any of the Events of Default as detailed hereinabove or otherwise, the Lender shall have the right to terminate this Agreement, forthwith and be entitled to recall Outstanding Amounts together with all applicable charges as immediately payable to the Lender from the Borrower.

Miscellaneous Payments:

The Borrower must pay to and indemnify the Lender on demand:

  1. any stamp duties, registration duty or similar Tax or charge in connection with the entry into, performance or enforcement of any Finance Document;
  2. such amount as is necessary to indemnify the Lender against any cost, loss or liability arising as a result of:
    1. the occurrence of any Default;
    2. a failure by the Borrower to pay any amount due under a Finance Document on its due date;
    3. the Lender investigating any event which the Lender reasonably believe to be a Default;
    4. the Lender acting or relying on any notice which the Lender reasonably believe to be genuine, correct and appropriately authorised; or
    5. the Lender receiving an amount in respect of the liability of the Borrower under the Finance Documents, or that liability being converted into a claim, proof, judgment or order, in each case in a currency other than the currency in which the amount is expressed to be payable under the relevant Finance Document;
  3. all costs and expenses (including legal fees) incurred by the Lender:
    1. in connection with the preparation, perfection, enforcement of, or presentation of rights under, the Finance Documents or any Security Interest provided by the Borrower or any other person in respect of the obligations of the Borrower under this Agreement; and
    2. in responding to, evaluating, negotiating or complying with any request by the Borrower for an amendment, waiver or consent.
  4. The Borrower hereby authorizes the Lender to deduct any and all amounts payable towards stamp duty, legal fees, registration charges or other taxes/levies, in respect of the Facility and/or the Finance Documents, as may be applicable from time to time, from the Advances. The Borrower agrees to pay to the Lender all such other charges and fees as may be levied by the Lender from time to time, including but not limited to fees and charges for the services payable to the Lender such as cancellation of Advance, rebooking of the Advance, issuance of duplicate NOCs and/or Cheques. For avoidance of doubt, all amounts payable by the Borrower pursuant to this paragraph 15 shall be exclusive of any Taxes applicable thereon.

Calculations and evidence:

  1. Any interest, commission or fee under a Finance Document accrues from day to day and is calculated on the basis of the actual number of days elapsed and a year of 360 (Three Hundred Sixty) days or otherwise (depending on what the Lender determines is market practice).
  2. The Lender shall maintain in accordance with its usual practice, an account ("the Loan Account") of the Borrower, in its books, evidencing the amounts payable by the Borrower to the Lender till the Final Settlement Date.
  3. The Borrower hereby irrevocably agrees to accept the statement of account provided by the Lender, with respect to the Outstanding Amount and the entries thereof, as true and correct.
  4. Set-off: The Lender may (but is not obliged to) set off any matured obligation owed by the Borrower to the Lender (to the extent beneficially owned by the Lender) against any obligation (whether or not matured) owed by the Lender to the Borrower.

Disclosure of information:

The Lender may without the prior consent of the Borrower disclose to (a) any of its affiliates; or (b) any court, tribunal, supervisory, governmental or regulatory authority to which it is subject pursuant to a request by that court, tribunal or regulatory authority; or (c) any person with whom it is proposing to enter, or has entered into, any kind of transfer, participation or other agreement in relation to this Agreement; or (d) to its professional advisors; or (e) to any person as required by law, regulation or count order; or (f) in connection with any legal or arbitration proceedings in connection with the Finance Documents; or (g) to any other person who has entered into a confidentiality agreement with the Lender or otherwise owe a duty of confidentiality to the Lender:

  1. a copy of any Finance Document; and
  2. any information which the Lender has acquired under or in connection with any Finance Document (including, without limitation, information in relation to the Borrower).

Amendments:

The provisions of this Agreement may be amended in writing by agreement by all parties to this Agreement.

Law and Arbitration:

  1. Any and all disputes, claims, differences arising out of or in connection with this Agreement or the performance of this Agreement shall be settled by arbitration to be referred to a sole arbitrator to be appointed by the Parties and the award thereupon shall be binding upon the Parties. The place of the arbitration shall be in New Delhi and the arbitration shall be held in accordance with the provisions of the Arbitration and Conciliation Act, 1996 and any statutory amendments thereof, including under Section 29B of the Arbitration and Conciliation Act, 1996. The proceeding of Arbitration tribunal shall be conducted in English language. Each Party shall bear the cost of representing its case before the Arbitrator. Costs and charges of Arbitrator shall be shared equally unless otherwise provided for in the award.
  2. The Borrower agrees that all claims, differences and disputes, arising out of or in relation to dealings / transaction made in pursuance of this Agreement, including any question of whether such dealings, transactions have been entered into or not, shall be subject to the exclusive jurisdiction of the courts at New Delhi only.
  3. Nothing contained in this paragraph 17, shall limit any right of the Lender, to take proceedings in any other court or tribunal of competent jurisdiction, nor shall the taking of proceedings in one or more jurisdictions preclude the taking of proceedings in any other jurisdiction whether concurrently or not and the Borrower irrevocably submits to and accept, generally and unconditionally, the jurisdiction of such courts and tribunals.
  4. The Borrower hereby consents generally in respect of any proceedings arising out of or in connection with any of the Finance Documents to the giving of any relief or the issue of any process in connection with such proceedings including, without limitation, the making, enforcement or execution against any property whatsoever (irrespective of its use or intended use) of any order or judgment which may be made or given in such proceedings.

Waiver/Forbearance

Any waiver or forbearance or delay on the part of the Parties to insist upon the performance of any terms and conditions of the Finance Documents, or to exercise any right or privilege conferred in the Finance Documents, or to demand any penalties resulting from any breach of any of the terms or conditions of the Finance Documents shall not be construed as a waiver on the part of the Parties of any of the terms or conditions of this Agreement or of any of its rights or privileges or of any other default on the part of the Borrower, and all original rights and powers of the Parties under the Finance Documents will remain in full force, notwithstanding any such forbearance or delay.

Assignment And Succession

The Finance Documents shall be binding upon and shall inure to the benefit of the Parties hereto and their respective successors. The Borrower, its heirs, successors, legal representatives, executors, administrators and successors-in-interest, as the case may be, shall be bound by the terms of this Agreement. However, the Borrower shall not assign its rights and obligations under the Finance Documents without the prior written consent of the Lender. The Lender shall be entitled to transfer any Advance or part thereof or assign its rights and obligations under the Finance Documents without the Borrower’s consent and any such Person to whom the Loan or any part thereof is assigned or transferred to shall be referred to as a New Lender and shall be bound by the terms and conditions of the Finance Documents.

Acceptance

  1. The Borrower agrees and acknowledges that it has read the entire Agreement, the duly filled information in Schedules hereto and the Annexures thereto. The Borrower declares that the Borrower shall be bound by all the conditions mentioned herein.
  2. The Borrower further agrees and declares that this Agreement and other documents have been explained to the Borrower in the language understood by the Borrower and that the Borrower has understood the entire meaning of various clauses and schedules and Annexures forming part and parcel of this Agreement as well as of the other documents signed/executed by the Borrower.

SCHEDULE 1

Definitions and Construction

Advance has the meaning given to it in Clause 2.

Agreement means this Agreement and any other document designated as such by the Lender and the Borrower (together with any other document amending, varying, supplementing or replacing this Agreement).

Applicable Law means all laws, statutes, ordinances, regulations, guidelines, policies, rules, bye-laws, notifications, directions, directives and orders or other governmental restrictions or any similar form of decision of, or determination by, or any interpretation, administration and other pronouncements having the effect of law of the Republic of India or any other applicable jurisdiction by state, municipality, court, tribunal, government, ministry, department, commission, arbitrator or board or such other body which has the force of law in India.

Business Day means, subject to Clause 16, a day (other than a Saturday or Sunday) on which banks are open for general business in Mumbai and, in relation to any day for the payment or purchase of any currency, the principal financial centre of the country of that currency.

Cheques shall mean in relation to each Advance the separate cheques provided by each of the Borrower and the guarantor for (a) each Advance amount, and (b) the aggregate Interest due and payable under such Advance.

Default means an Event of Default or an event or circumstance which would be (with the expiry of any grace period, the giving of notice, or the making of any determination under this Agreement or any combination of them) an Event of Default.

Event of Default means any of the events specified in Clause 13.

Facility means the facility made available under the Credit Application Form.

Facility Amount means the amount specified in the Credit Application Form

Final Settlement Date means the date on which the Borrower has repaid all Outstanding Amounts.

Finance Document means this Agreement, any Request, the Security Documents, if any, Credit Application Form and any other document designated as such by the Lender.

INR or Rupees means the lawful currency of India.

Interest Payment Date means, in relation to an Advance, each date specified in the Credit Application Form.

Maturity Date means:

  1. in respect of an Advance, the date specified in the Credit Application Form; and
  2. in respect of an overdue amount, the date determined by the Lender in its absolute discretion (acting reasonably).

Outstanding Amounts means all amounts that are outstanding and includes each of the Advance, applicable, Interest, Default Interest at the Default Interest Rate (if any), and all other fees or payments payable under the Finance Documents to the Lender by the Borrower.

Person shall mean any individual, firm, company, joint venture, association, partnership, trust, or other entity (Whether having separate legal personality and identity or not);

Security means the security as may be acceptable to the Lender including but not limited to charge of any kind created with respect to the assets of the Borrower.

Security Documents means each of the Deeds of Guarantee, the Deed of Hypothecation undated cheques of an amount equivalent to the amount of each Advance, demand promissory notes of an amount equivalent to the amount of each Advance and such other document designated as such by the Lender, to the extent applicable.

Security Interest means any mortgage, pledge, lien, charge, assignment, hypothecation or security interest or any other agreement or arrangement having a similar effect.

Tax means any tax, levy, impost, duty or other charge or withholding of a similar nature (including any related penalty or interest).

Accreditations

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