LOAN AGREEMENT WITH EMI SCHEDULE AND SECURITY CHEQUES
This Loan Agreement (this "Agreement") is made at Chandigarh on 2 April 2026.
BETWEEN
Rajinder Kumar Sethi, of House No. 1451, Sector 33-D, Chandigarh 160020, PAN AFRPB2211J (the "Lender", which expression includes the Lender's heirs, legal representatives and permitted assigns);
AND
Vikram Sethi, of House No. 214, Phase 4, S.A.S. Nagar (Mohali) 160059, PAN AFRPB2212K (the "Borrower", which expression includes the Borrower's heirs and legal representatives).
The Lender and the Borrower are each a "Party" and together the "Parties". The Lender is the Borrower's elder brother.
BACKGROUND
A. At the Borrower's request, the Lender has agreed to lend the Borrower the sum of ₹3,00,000 (Rupees Three Lakh only) (the "Loan Amount"), to be repaid in monthly instalments, on the terms of this Agreement.
B. The Loan Amount is required by the Borrower for personal and family expenses.
C. The Lender confirms that this loan is a personal, one-off transaction made otherwise than in the course of any business of money-lending.
NOW THIS AGREEMENT WITNESSES AND THE PARTIES AGREE as follows:
- 1. THE LOAN
1.1 The Lender shall pay the Loan Amount to the Borrower by bank transfer (NEFT, RTGS or IMPS) to the Borrower's bank account on 1 April 2026 (the "Disbursement Date").
1.2 The Borrower's signature on this Agreement is an acknowledgement of receipt of the Loan Amount in full on the Disbursement Date.
- 2. INTEREST
2.1 interest-free — the Borrower shall repay only the Loan Amount, with no interest.
- 3. REPAYMENT BY EMI
3.1 The Borrower shall repay the Loan Amount in 12 monthly instalments (each an "EMI") of ₹26,500 (Rupees Twenty Six Thousand Five Hundred only) each. The first EMI falls due on 2 April 2026, and each later EMI falls due on the same day of each following month.
3.2 If the Loan Amount is interest-bearing under clause 2, each EMI is applied first towards interest accrued up to its due date and the balance towards principal. The final EMI is whatever balance of principal, interest and other sums is then outstanding, which may be more or less than the other EMIs.
3.3 The EMI schedule at the end of this Agreement forms part of it. If the schedule and clause 3.1 differ, clause 3.1 governs.
3.4 Each EMI shall be paid to the Lender's bank account stated below, or by such other bank mode as the Parties agree in writing, and not in cash. On request, the Lender shall give the Borrower a written receipt for each EMI.
3.5 The Lender's account for payment is: Rajinder Kumar Sethi, A/c 003456781234, State Bank of India, Sector 34 Branch, Chandigarh, IFSC SBIN0004321.
- 4. PREPAYMENT
4.1 The Borrower may prepay the Loan Amount, in full or in part, at any time without prior notice and without any prepayment charge. A part-prepayment is applied first towards any interest and other amounts then due, and the balance towards principal, and does not by itself change the due dates of the remaining EMIs unless the Parties agree otherwise in writing.