Personal guarantee for a housing loan, given under the Indian Contract Act, 1872
Loan account / sanction reference: HHLDEL00098234512
Borrower: Aarav Ramesh Sharma and Priya Aarav Sharma
Lender: HDFC Bank Limited, Baner Road, Pune
Guarantor: Sunita Devi Verma and Rakesh Kumar Verma
Loan amount: ₹55,00,000 (Rupees Fifty Five Lakh only)
This Deed of Guarantee is made at Pune, Maharashtra on 2 April 2026.
BY
Sunita Devi Verma, wife of Rakesh Kumar Verma, aged about 52 years, Government service by occupation, resident of X, PAN ABCPV1234K
AND
Rakesh Kumar Verma, son of Late Shri Mohan Lal Verma, resident of X, PAN ABCPV5678M
(the "Guarantor". In this Deed "I", "me" and "my" mean the Guarantor. Where two persons sign as Guarantor, those words mean each of us, and our liability to the Lender is joint and several.)
IN FAVOUR OF
HDFC Bank Limited, a banking company, acting through its Baner Road, Pune branch at X (the "Lender").
A. By its sanction letter dated 1 April 2026, the Lender has sanctioned to the Borrower a housing loan of ₹55,00,000 (Rupees Fifty Five Lakh only), repayable over 240 months, carrying interest at 8.75% per annum floating, linked to the repo rate (the "Loan"), in respect of the property described in the Schedule to this Deed (the "Property").
B. The Borrower is my younger brother, residing at X. Priya Aarav Sharma is a co-borrower under the Loan, and in this Deed the expression "Borrower" includes the co-borrower.
C. The Lender has required a personal guarantee as a condition of sanctioning the Loan.
D. At the Borrower's request, and knowing that the Lender is acting on the strength of this Deed, I have agreed to give that guarantee, on the terms set out below and on no other terms.
E. I have been given a copy of the sanction letter, I have had the opportunity to take independent legal advice, and I am signing with an understanding of what clause 3 of this Deed means.
1.1 "Guaranteed Obligations" means everything the Borrower owes the Lender under the Loan from time to time — principal, contracted interest, penal charges levied in accordance with the Reserve Bank of India's directions on penal charges in loan accounts, insurance premia properly debited to the loan account, and the Lender's reasonable and documented costs of recovery. My liability for the Guaranteed Obligations is subject to any monetary limit expressly stated in this Deed.
1.2 "Loan Documents" means the sanction letter dated 1 April 2026, the loan agreement, and the security documents executed for the Loan.
1.3 "the Act" means the Indian Contract Act, 1872.
2.1 I guarantee to the Lender the due payment of the Guaranteed Obligations. If the Borrower fails to pay any amount when it falls due, I will pay that amount to the Lender on written demand made in accordance with clause 4.
2.2 This is a continuing guarantee within the meaning of section 129 of the Act. It extends to the Loan as a whole and to every amount outstanding from time to time (subject to any monetary limit stated in this Deed), and it is not discharged by any intermediate payment or by the loan account standing at nil at any point in time. It remains in force until the Guaranteed Obligations are paid in full, subject to clause 12.
2.3 This guarantee is in addition to, and not in substitution for, any security the Lender holds or later takes for the Loan.
3.1 Under section 128 of the Act, my liability as surety is co-extensive with that of the Borrower. In plain terms: I owe what the Borrower owes, except to the extent this Deed limits it.
3.2 The Lender is not required to make a demand on the Borrower first, to sue the Borrower first, to obtain a decree against the Borrower first, or to enforce or sell the Property first, before it demands payment from me. It may proceed against the Borrower and against me at the same time.
3.3 Where the Loan is secured by a mortgage of the Property and the Lender takes action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, I acknowledge that section 13(11) of that Act entitles the Lender to proceed against me as guarantor without first taking any of the measures specified in clauses (a) to (d) of section 13(4) in relation to the secured asset. I record that I am a "borrower" within the meaning of section 2(1)(f) of that Act, and that I am accordingly entitled to the notices that Act requires to be given to a borrower, including the notice under section 13(2). The Lender will serve those notices on me at the address in clause 15.
3.4 Subject to any limit stated in this Deed, the Lender may demand from me the whole of the amount then due under the Loan or any part of it, and may make more than one demand.
3.5 I understand that a demand under this Deed may be met out of any of my assets and my income, and is not confined to the Property.
3.6 Limit on my liability. Notwithstanding anything else in this Deed, my total liability to the Lender under this Deed is limited to ₹20,00,000 (Rupees Twenty Lakh only), together with interest on that sum at the rate applicable to the Loan from the date of the Lender's written demand on me, and the Lender's reasonable and documented costs of enforcing this Deed against me. This limit does not reduce the Borrower's own liability to the Lender.
4.1 A demand on me must be in writing, must be served in the manner set out in clause 15, and must state the loan account number, the total amount claimed, and a working of how that amount is arrived at.
4.2 I will pay the amount demanded within 15 days of receiving the demand.
4.3 A statement of the loan account signed by an authorised officer of the Lender will be accepted by me as evidence of the amount due, unless it is shown to be wrong.
4.4 The Lender will give credit against my liability for every amount it recovers from the Borrower, from the Property, or from any other guarantor, and will inform me of any such recovery within 30 days.
This clause is the substance of the bargain from my side.
5.1 I do not waive, and this Deed does not exclude, sections 133, 134, 135, 139 or 141 of the Act, except as expressly provided in clause 5.3.
5.2 Variance in terms (section 133). The Lender will not make any change in the terms of the Loan that increases or extends my exposure — an increase in the sanctioned amount, a fresh or top-up facility on the same security, a change from a floating rate arrangement to a fixed one or the reverse, or a restructuring of the repayment terms — without my prior written consent. If it does so without my consent, I am discharged as to transactions subsequent to the change, as section 133 provides.