LOAN AGREEMENT WITH EMI SCHEDULE AND SECURITY CHEQUES
BETWEEN
__________, of __________, PAN __________ (the "Lender", which expression includes the Lender's heirs, legal representatives and permitted assigns);
AND
__________, of __________, PAN __________ (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 __________.
BACKGROUND
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
1.2 The Borrower's signature on this Agreement is an acknowledgement of receipt of the Loan Amount in full on the Disbursement Date.
- 2. INTEREST
- 3. REPAYMENT BY EMI
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.
- 4. PREPAYMENT
- 5. LATE PAYMENT
- 6. SECURITY CHEQUES
6.2 Each Security Cheque is drawn on an account held in the Borrower's own name. The Borrower shall keep enough money in that account to meet each Security Cheque on its date.
6.4 When every sum due under this Agreement has been paid in full, the Lender shall at once return to the Borrower every Security Cheque still held, and the Borrower shall sign a receipt for them. A Security Cheque that has already been presented and paid is not returned.
6.5 The Parties record that the dishonour of a cheque can have legal consequences for the person who issued it under the Negotiable Instruments Act, 1881, in addition to the Lender's rights under this Agreement. Take advice before taking any step on a dishonoured cheque.
- 7. DEFAULT
7.2 On an event of default, the Lender may by written notice declare the whole outstanding Loan Amount, accrued interest and late-payment interest immediately due and payable, and may recover it by civil suit or, if clause 13 provides for arbitration, by arbitration.
- 8. DEATH OF THE BORROWER
8.1 The Borrower's obligations under this Agreement do not end on the Borrower's death. They bind the Borrower's estate and are recoverable from the Borrower's legal heirs and representatives to the extent of the assets of the estate that come into their hands, and not further.
- 9. TAX AND PAYMENT MODE
9.1 Interest received by the Lender on this loan is the Lender's income and is taxable under the Income-tax Act, 1961. Income-tax law also restricts taking or repaying a loan in cash above a limit. The Parties shall each comply with the income-tax law that applies to them, and shall use a bank mode of payment for the Loan Amount and every EMI.
- 10. STAMP DUTY AND REGISTRATION
- 11. NOTICES
11.1 A notice under this Agreement is validly given if delivered by hand, sent by registered post with acknowledgement due, or sent by e-mail to the address stated for the Party concerned in this Agreement, and is treated as received: if by hand, on delivery; if by post, on the expiry of the ordinary course of post; and if by e-mail, on the next working day.
- 12. ASSIGNMENT
12.1 The Borrower shall not assign or transfer any obligation under this Agreement without the Lender's prior written consent. The Lender may assign the benefit of this Agreement on written notice to the Borrower, and the Borrower shall then pay the assignee as directed.
- 13. DISPUTE RESOLUTION AND GOVERNING LAW
13.3 This Agreement is governed by the laws of India as in force at the place where it is executed.
- 14. GENERAL
14.1 This Agreement is the entire agreement between the Parties about the loan and supersedes all prior discussions about it.
14.2 No amendment is effective unless made in writing and signed by all Parties to this Agreement.
14.3 A failure or delay by the Lender in enforcing a right under this Agreement is not a waiver of it, and a single or partial exercise does not prevent further exercise.
14.4 If any provision of this Agreement is held invalid or unenforceable, the rest of this Agreement continues in effect.
EMI SCHEDULE
RECORD OF EMIs PAID (the Lender initials each line when the EMI is received; continue on a separate sheet if more lines are needed)
EMI 1: due on ____________ amount ____________ paid on ____________ Lender's initials ______
EMI 2: due on ____________ amount ____________ paid on ____________ Lender's initials ______
EMI 3: due on ____________ amount ____________ paid on ____________ Lender's initials ______
EMI 4: due on ____________ amount ____________ paid on ____________ Lender's initials ______
EMI 5: due on ____________ amount ____________ paid on ____________ Lender's initials ______
EMI 6: due on ____________ amount ____________ paid on ____________ Lender's initials ______
EMI 7: due on ____________ amount ____________ paid on ____________ Lender's initials ______
EMI 8: due on ____________ amount ____________ paid on ____________ Lender's initials ______
EMI 9: due on ____________ amount ____________ paid on ____________ Lender's initials ______
EMI 10: due on ____________ amount ____________ paid on ____________ Lender's initials ______
EMI 11: due on ____________ amount ____________ paid on ____________ Lender's initials ______
EMI 12: due on ____________ amount ____________ paid on ____________ Lender's initials ______
SIGNED AND DELIVERED by the LENDER
__________
PAN: __________
Signature: ______________________________
SIGNED AND DELIVERED by the BORROWER
__________
PAN: __________
Signature: ______________________________
WITNESSES