Loan Agreement

A loan agreement is a contract between a borrower and a lender which regulates the mutual promises made by each party.It is a formal document that evidences a loan. There are many types of loan agreements, including “facilities agreements,” “revolvers,” “term loans,” “working capital loans.”

The object of loan agreement is that it determines the terms and condition between the lender and borrower. The agreement is binding on both the parties and  is enforceable by law

 

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      DRAFT OF LOAN AGREEMENT
      LOAN AGREEMENT BETWEEN

      ________________________

      AND ______________________

      THIS AGREEMENT made and entered into at _______ this ____ day of_______, ______ BETWEEN __________________ hereinafter called “the Lender” AND ________________________ hereinafter called “the Borrower” and reference to the parties hereto shall mean and include their respective heirs, executors, administrators and assigns;

      WHEREAS the Borrower is in need of funds and hence has approached the Lender to grant her an interest-free loan of Rs.________/- (Rupees ____________________ only) for a period of ____ years;

      AND WHEREAS the Lender has agreed to grant a loan to the Borrower, free of interest, as the Lender and the Borrower have known each other since several years;

      AND WHEREAS the parties hereto are desirous of recording the terms and conditions of this loan in writing;

      NOW THIS AGREEMENT WITNESSETH and it is hereby agreed by and between the parties hereto as under:-

      1.     The Borrower hereto, being in need of money, has requested the Lender to give her an interest-free loan of Rs.___________/- (Rupees _________________________ only) to enable her to purchase a residential flat, to which the Lender has agreed.

      2.     The said loan is required by the Borrower for a period of ____ years, commencing from __/__/___ and terminating on __/__/_____.

      3.     The Borrower hereby agrees and undertakes to return the loan of Rs.___________/- (Rupees ____________________only), in instalments, within the aforesaid period of ____ years and gives her personal guarantee for the same.

      4.     The terms and conditions of this Agreement are arrived at by the mutual consent of the parties hereto.

      IN WITNESS WHEREOF the parties hereto have hereunto set and subscribed their respective hands the day and year first hereinabove written.

      SIGNED AND DELIVERED by the Within-

      named Lender in the presence

      SIGNED AND DELIVERED by the Within-

      named Borrower in the presence of

  • Disclaimer: The information contained in the sample document is general legal information and should not be construed as legal advice to be applied to any specific factual situation. Any use of the Site or document format DOES NOT create or constitute a solicitor-client relationship between LawRato or any employee of or other person associated with LawRato and a user of the Site. The information or use of documents on the Site is not a substitute for the advice of a lawyer.

Deed of Hypothecation HP

Deed of Hypothecation” means a particular joint deed of hypothecation executed by the Borrower in favour of the particular Consortium of Lenders for the purpose of securing the Assets for the Facility and includes the Standard Terms as applied thereto, and all schedules and amendments to such Deed of Hypothecation.

The main purpose of hypothecation is to mitigate the creditors’s credit risk.If the debtor cannot pay, the creditor possesses the collateral and therefore can claim its ownership or sell it and thus compensate the lacking cash inflows.

 

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      DRAFT OF DEED OF HYPOTHECATION

      THIS DEED OF HYPOTHECATION executed at ________ on this the ___________ day of _________ between

      Mr.________________, son of_____________, aged about ___________ years, residing at _____________________, hereinafter called the CREDITOR (which expression shall, unless it is repugnant to the context mean and include his legal representatives, executors, administrators, and assigns)

      And

      Mr.________________, son of_____________, aged about ___________ years, residing at _____________________, hereinafter called the BORROWER (which expression shall, unless it is repugnant to the context mean and include his legal representatives, executors, administrators and assigns);

      WHEREAS

      The BORROWER has placed an order for the purchase of, a ___________, namely________________, {valued at Rs.____________ (Rupees ____________), (Details of the same are set out in the schedule ‘A’ hereunder) (hereinafter referred to as the asset), with the ________________, namely ________________, having its office at __________, and has remitted an amount of Rs.______________(Rupees _____________only}, with the said _________________ as advance towards the sale consideration.

      The BORROWER has approached the CREDITOR for a loan of Rs.______________, (Rupees _____________only), for the payment of the balance price of the schedule ‘A’ mentioned asset. The CREDITOR and BORROWER have agreed that the CREDITOR shall finance the purchase of the schedule ‘A’ mentioned asset, on the condition that the BORROWER hypothecates the schedule mentioned asset with the CREDITOR as security for the due repayment of the said loan. The parties have agreed to reduce their agreement to writing

      NOW THEREFORE IN CONSIDERATION OF THE MUTUAL OBLIGATIONS AND UNDERTAKINGS CONTAINED HEREIN THIS AGREEMENT WITNESSETH AS FOLLOWS:

      Payment by the CREDITOR

      The CREDITOR shall pay to the said manufacturer, on behalf of the BORROWER, a sum of Rs. ____________/-, (Rupees _______), towards the balance price of the said asset and shall retain possession of the original invoice of the said asset till the debt is fully discharged by the BORROWER.

      HYPOTHECATION

      The BORROWER hereby hypothecates and creates a charge on the asset more fully described in the schedule ‘A’ hereunder to and in favour of the CREDITOR as security for the repayment of the loan with interest.

      Obligations of the BORROWER

      The BORROWER hereby undertakes to repay the loan amount within a period of ______ months commencing from________ along with interest. The BORROWER shall pay interest at the rate of ______________ on the principal per month, at Rs._____________/-, (Rupees ____________only). The Interest and principal are payable in monthly instalments as per schedule-B hereto.

      Rights of the CREDITOR

      If the BORROWER defaults in payment of the amount as per schedule-B hereto then such defaulted instalment will carry interest as if the defaulted instalment is the principal, until it is paid. If the BORROWER fails to pay any ______ instalments then the CREDITOR shall be entitled to claim the principal and interest amount due, and the same shall become payable forthwith, on the CREDITOR calling upon the BORROWER to make payment of such defaulted principal amount.

      The BORROWER shall not remove or take the said asset, outside the State without prior intimation to the CREDITOR.

      The BORROWER agrees and undertakes to insure the asset against all hazards, and shall produce the relevant receipts, and other documents, whenever called upon by the CREDITOR so to do.

      Any dispute arising under this Deed or any matter incidental thereto, shall be submitted to arbitration as per the provisions of the Arbitration and Conciliation Act 1996 and the venue of the arbitration shall be at ………

      IN WITNESS WHEREOF the parties hereto affixed their signatures on the day month and year mentioned hereinabove

      SCHEDULE ‘A’

      (Describe the Asset)

      SCHEDULE-B

      (Describe the payment schedule)

      CREDITOR

      BORROWER

      WITNESSES

      1.

      2.

  • Disclaimer: The information contained in the sample document is general legal information and should not be construed as legal advice to be applied to any specific factual situation. Any use of the Site or document format DOES NOT create or constitute a solicitor-client relationship between LawRato or any employee of or other person associated with LawRato and a user of the Site. The information or use of documents on the Site is not a substitute for the advice of a lawyer.

Lease Deed (for a term of years) Rent Agreement

A lease agreement is simply a contract between a landlord and a tenant that states what the tenant will pay monthly for rent and for how long. The lease agreement outlines and details the obligations and responsibilities of the landlord (lessor) and the tenant (lessee).

It determines the terms and condition between tenant and landlord.

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      Draft of Deed of Lease (for a Term of Years) Rent Agreement

      This Deed of Lease is made at ….. this ….. day of …… between A of ….. hereinafter called ‘The Lessor’ of the One Part and B also of ….. hereinafter called ‘The Lessee’ of the Other Part.

      WHEREAS the Lessor is absolutely seized and possessed of or otherwise well and sufficiently entitled to the land and premises described in the Schedule hereunder written.

      AND WHEREAS the Lessor has agreed to grant to the Lessee a lease in respect of the said land and premises for a term of …. years in the manner hereinafter appearing.

      NOW  This Deed Witnesseth as Follows:

      1.     In pursuance of the said agreement and in consideration of the rent hereby reserved and of the terms and conditions, convenants and agreements herein contained and on the part of the Lessee to be observed and performed the Lessor doth hereby demise unto the Lessee all that the said land and premises situated at………….…………..and described in the Schedule hereunder written (hereinafter for the brevity’s sake referred to as ‘the demised premises’) to hold the demised premises unto the Lessee (and his heirs, executors, administrators and assigns) for a term of ……. years commencing from the 1st day of ………….., 20___, but subject to the earlier determination of this demise as hereinafter provided and yielding and paying therefor during the said term the monthly ground rent of Rs …….. free and clear of all deductions and strictly in advance on or before the….. day of each and every calendar month. The first of such monthly ground rent shall be paid on the ___ day of ……. and the subsequent rent to be paid on or before the ___ day of every succeeding month regularly.

      2.     The Lessee hereby for himself, his heirs, executors, administrators and assigns and to the intent that the obligations herein contained shall continue throughout the term hereby created covenants with the Lessor as follows:

      a.     To pay the ground rent hereby reserved on the days and in the manner aforesaid clear of all deductions. The first of such monthly rent as hereinbefore provided shall be paid on the…. of ……. and the subsequent rent shall be paid on the…. day of every succeeding month regularly and If the-ground rent is not paid on the due dates the Lessee shall pay interest thereon at the rate of ……. % per annum from the due date till payment, though the payment of Interest shall not entitle the Lessee to make default in payment of rent on due dates.

      b.    To bear pay and discharge the existing and future rates. taxes and assessment duties, cess, impositions, outgoing and burdens whatsoever which may at any time or from time to time during the term hereby created be Imposed or charged upon the demised land and the building or structures standing thereon and on the buildings or structures hereafter to be erected and for the time being standing on the demised land and payable either by the owners, occupiers or tenants thereof and to keep the Lessor and his estate and effects Indemnified against all such payment. The annual Municipal and other taxes at present are Rs……………

      c.     To keep the buildings and structures on the demised premises ,in good and tenantable repairs in the same way as the Lessor is liable to do under the law provided that if the Lessee so desires he shall have power to demolish any existing building or structure without being accountable to the Lessor for the building material of such building and structure and the Lessee shall have also power to construct any new buildings in their place.

      d.    The Lessee shall be at liberty to carry out any additions or alterations to the buildings or structures at present existing on the demised premises or to put up any additional structures or buildings on the demised premises In accordance with the plans approved by the authorities at any time or from time to time during the subsistence of the term hereby created.

      e.     Not to sell or dispose of any earth, gravel or sand from the demised land and not to excavate the same except so far as may be necessary for the execution of construction work.

      f.     To use or permit to be used the buildings and structures to be constructed on the demised premises for any and all lawful purposes as may be permitted by the authorities from time to time.

      3.     The Lessor doth hereby covenant with the Lessee that:

      a.     the Lessor now has in himself good right full power and absolute authority to demise unto the Lessee the demised premises and the buildings and structures standing thereon In the manner herein appearing………..

      b.    that on the Lessee paying the said monthly ground rent on the due dates thereof and in the manner herein provided and observing and performing the covenants,conditions, and stipulations herein contained and on his part to be observed and performed shall and may peaceably and quietly hold, possess and enjoy the demised premises together with the buildings and structures standing thereon during the term hereby created without any eviction, interruption, disturbance, claim and demand whatsoever by the Lessor or any person or persons lawfully or equitably claiming by, from, under or in trust for him.

      4.     It is hereby agreed and declared that these presents are granted on the express condition that if the said monthly ground rent or any part thereof payable in the manner hereinbefore mentioned shall be an arrears for the space of …… months after the same shall have become due and payable on any of the said days wherein the same ought to be paid as aforesaid whether the same shall or shall not be legally demanded or If any of the covenants and stipulations herein contained and on the part of the Lessee to be observed and performed shall not be so observed and performed by the Lessee or If the Lessee shall raise an objection to the amount of the monthly ground rent hereby fixed for any reason whatsoever then and in such event it shall be lawful for the Lessor or any person or persons duly authorised by him in that behalf at any time hereafter to enter into and upon the land and premises and the buildings and structures constructed or to he constructed thereon or any part or parts thereof in the name of the whole and the same to have, possess and enjoy and thereupon this demise shall absolutely determine but without prejudice to the right of action of the Lessor in respect of any breach of any of the covenants by the Lessee herein contained PROVIDED ALWAYS that, no re-entry shall be made under the foregoing power for breach of the covenants and stipulations herein contained and on the part of the Lessee to be observed and performed (save and except the covenant for payment of rent) unless and until the Lessor shall have given to the Lessee a notice in writing specifying the covenants and conditions or stipulations which require to be complied with or carried out and the Lessee shall have failed to comply with or carry out the same within ….. month from the date of the receipt of by such notice.

      5.     And it is hereby expressly agreed and declared between the parties as follows-

      a.     On the expiration of the term hereby created or earlier determination under the provisions hereof all the buildings and structures standing on the demised land shall automatically vest in the Lessor without payment of any compensation therefor by the Lessor to the Lessee.

      b.    The Lessee shall not be entitled, without obtaining In writing the permission of the Lessor, to assign mortgage, sublet (except to the extent of creating monthly tenancies) or otherwise part with possession of the demised premises or any of them or any part thereof and the buildings and structure standing thereon though such permission shall not be unreasonably withheld.

      IN WITNESS WHEREOF the Lessor and the Lessee have put their respective hands on the original and duplicate hereof the day and year first herein above written.

      THE SCHEDULE ABOVE REFERRED TO

      Signed and delivered by the

      Withinnamed Lessor …….. in the presence of ……..

      Signed and delivered by the

      Withinnamed Lessee …….. in the presence of ……..

  • Disclaimer: The information contained in the sample document is general legal information and should not be construed as legal advice to be applied to any specific factual situation. Any use of the Site or document format DOES NOT create or constitute a solicitor-client relationship between LawRato or any employee of or other person associated with LawRato and a user of the Site. The information or use of documents on the Site is not a substitute for the advice of a lawyer.