CONSUMER LOAN AGREEMENT

 

 

THIS AGREEMENT (hereinafter referred to as the "Agreement") made and executed at [Place] this [Date], by and between [Borrowers Name], Indian Inhabitant residing at [address](hereinafter referred to as the "Borrower", which expression shall, unless it be repugnant to the context or meaning thereof, be deemed to mean and include its successors and assigns) of the ONE PART AND [Lenders Name](viz: NBFC/Financial Institution) a company incorporated under the Companies Act, 1956 and having its registered office at [address](hereinafter referred to as the "Agency", which expression shall, unless it be repugnant to the context or meaning thereof, be deemed to mean and include its successors and assigns) of the OTHER PART.

WHEREAS the Borrower has approached the Lender for a loan of Rs.___ to purchase a flat situated at___ and the LENDER has agreed to give the said loan to the Borrower.

IT IS HEREBY AGREED BY THE PARTIES AS UNDER:

1. Promise to Pay: Within _____months from today, the Borrower promise to pay to the Lender Rs._________ , and interest and other charges stated hereinunder.

 

2. Responsibility: The Borrower accepts the responsibility for paying back the full amount with interest to the Lender.

 

3. Breakdown of Loan: The Borrower agrees to repay the loan amount as under

1. Amount of Loan: Rs__________

2. Other (Describe) Rs__________

3. Amount financed:Rs__________

(Add 1 and 2)
4. Finance charge: Rs__________

5. Total of payments:Rs__________

(Add 3 and 4)
ANNUAL PERCENTAGE RATE________________%

 

4. Repayment: The Borrower agrees to repay the amount of loan with interest in _____equal uninterrupted monthly installments of Rs______each on the _____ day of each month starting on the_____day of_______,20____, and ending on _________, 20____.

 

5. Prepayment: The Borrower reserves his right to prepay the whole outstanding amount at any time on the terms ___

 

6. Late Charge: Any installment not paid by the Borrower within ten (10) days of its due date shall be subject to a late charge of 5% of the payment, not to exceed Rs_____for any such late installment.

 

7. Security: To protect the Lender the Borrower hereby give the Lender a security interest or mortgage : (Describe the property) and also the aforesaid flats original documents until receipt of full repayment from the Borrower

8. Default: If for any reason the Borrower fail to make any payment on time, the borrower shall be in default. The lender can then demand immediate payment of the entire remaining unpaid balance of this loan, without giving anyone further notice. If the borrower have not paid the full amount of the loan when the final payment is due, the lender will charge interest on the unpaid balance at______ percent ( %) per year.

 

9. Right of Offset: If this loan becomes past due, the lender will have the right to pay this laon from any deposit or security the borrower have with this lender without notice to me. If the lender gives the borrower an extension of time to pay this loan, the borrower still must repay the entire loan.

 

10. Collection fees: If this note is placed with an Legal Service Provider for collection, then the borrower agree to pay an Legal Service Provider's fee of fifteen percent (15%) of the unpaid balance. This fee will be added to the unpaid balance of the loan.

 

_______________________________
Lender


______________________________
Borrower

 

 

 

_______________________________

Witness

 

ABSOLUTELY NO WARRANTIES ARE MADE REGARDING THE SUITABILITY OF THESE FORMS FOR ANY PARTICULAR PURPOSE. IT IS ADVISABLE THAT IMPORTANT DOCUMENTATIONS ARE PREPARED OR VETTED BY EXPERT. LEGAL ADVICE OF ANY NATURE SHOULD BE SOUGHT FROM COMPETENT, INDEPENDENT, LEGAL EXPERT IN THE RELEVANT JURISDICTION.