7.2 List of Forms - Based On External Benchmark : Linked To REPO RATE

 Formats of Forms
7.2 List of Forms – Based on External

Benchmark (Linked to REPO RATE)
D.No List of Forms Page No

F-44 Form of Counter Guarantee 7.2-2
F-44C Counter Guarantee for DPGs / Usance Bills Acceptance 7.2-7
facilities
F-44D Counter-guarantees to be obtained for Bid Bond Guarantees 7.2-13
F-63 Covering letter for loans and advances for which there are 7.2-16
no special agreements
F-107 Letter of undertaking for advance against uncleared effects 7.2-21
F-117 Letter from borrower and guarantor for Conversion loan 7.2-24
7.2-1
 Documentation Manual
Special
Adhesive
F44 Stamp as
payable for
Indemnity
Counter Guarantee
(The Stamp duty as applicable to the State in which the document is executed)
Place .............................
Date ..............................
From
..............................................................
..............................................................
To
Indian Bank
........................................... Branch
Dear Sirs
In consideration of Indian Bank ............................................................ branch at my/our request
signed and/or agreed to sign, as and when required by me/us guarantee in favour of various authorities
and departments of the Central and State Governments, Semi-Government Bodies, Local or Public Bodies
or Authorities or various other persons, Companies, Corporations or Corporate Bodies whom I/we may
specify from time to time so that the total amount of the liabilities outstanding under all such guarantees
does not at any one point of time exceed a sum of ` ..................... and subject to your right to refuse to
issue any guarantee of which you do not approve or to refuse to issue any further guarantees at any time,
the expression ''such guarantees" shall unless repugnant to the context or meaning thereof be deemed to
include any renewals or extensions or modification of all or any such guarantees, I/We hereby agree and
undertake
1. That the Bank shall be entitled to act in accordance with the guarantees executed and/or to be
executed by it within the sanctioned limit of `.......................... (Rupees ...............................................
......................................only) as aforesaid and to make payment thereunder without any further consent
and in spite of any directions or contrary directions given by me/us or any of us.
2. That I/we agree to pay commission at ............ % per annum on the above guarantee. I/We further
agree and undertake to pay any revised/enhanced commission charges with effect from the date of
issuance of the guarantee or for any subsequent period and the bank is hereby authorised to
revise/enhance the commission as per their policy from time to time without further notice to me/us.
3. That I/We shall pay on demand and without demur pay to the Bank all amounts which the Bank may
be called upon to pay from time to time under the said guarantees executed and/or to be executed and all
other moneys arising out of the said guarantees or any of them with interest thereon and all costs, charges
(including Bank Charges) and expenses of the Bank.
4. That I/We shall indemnify, on demand and without demur and keep indemnified the Bank from and
against all actions, losses, claims, demands, duties, penalties, damages, costs, charges, expenses
fees/charges towards Information Utilities for electronic storage of financial information and other
liabilities whatsoever which may be brought or made against or sustained or incurred by the Bank (and
whether paid by the Bank or not) in consequence of the Bank having executed the said guarantees or any
of them or otherwise howsoever in relation thereto.
7.2-2
5. That the Bank shall at its sole discretion and without reference to me/us admit or compromise and
pay or submit to arbitration or dispute or resist any claim or demand made against the Bank under or in
respect of the said guarantees, my/our counter-guarantee being available to the Bank in respect of any
action which may be taken against the Bank. Submitting to arbitration may be considered as an additional
remedy and it does not preclude the right of the bank to seek redressal/ other recourse.
6.1 I/We hereby authorise the Bank to charge and debit the said account with interest at the rate of
.........……..... (factoring in as spread**) per cent per annum over the Repo Rate* (The current Repo rate
being .............. %, the effective rate of interest shall be ............... % per annum) on the daily balance with
…………………………………. rests, such interest being added to the balance outstanding on the last
working day of every financial/calendar………….........………............ (Mention here month/quarter/half-
year/year as the case may be) and the said interest, if unpaid, will become part of the amount advanced
and bear interest at the same rate as I/we may be liable to pay under this counter-guarantee and that the
Bank may proceed against and recover from any of my/our property as including any credit balance held
by the Bank or any security for the time being held by the bank on our account by sale or otherwise and to
allocate and apply the net proceeds of sale and realisation thereof and any other moneys in the Bank's
hands standing to my/our credit/belonging to me/us on any account whatsoever independently the one or
the other in such order and in such manner as the Bank may think fit in or towards payment of any amount
payable by me/us to the Bank in terms of this deed.
* Repo Rate : Revision in RBI Policy Repo rate will be effected from 1st of succeeding month.
** Spread : Prime Spread ............%+ Credit Risk Premium............%+Business Strategy
Premium............%
6.2 I/We agree that the Bank is entitled to charge a higher rate of interest than the rate stated above as
per Reserve Bank of India policy directives/ Bank rules and agree to pay interest at such enhanced rate of
interest.
I/We agree that the Bank shall have the right to revise prime spread once in three years starting
01.10.2019.
I/We agree that the Bank is entitled to revise the credit risk premium annually upwards or
downwards based on the change in the risk profile of the Borrower as per sanction terms and conditions.
6.3 I/We further agree that in the event of default in payment of interest/instalments on the respective
due dates or any irregularity in the account or non-complying with any of the terms and conditions
contained herein, the bank is entitled to charge overdue interest on the defaulted amount at ....................%
over and above the contractual/maximum interest rates or at such rates with ................................... rests
as per the Reserve Bank of India / Bank’s rules in force from time to time.
6.4 I/We shall be deemed to have received notice of change in the rate of interest whenever the
changes in the Repo rate / Spread are displayed/notified at/by the branch / published in newspaper/made
through entry of interest charged in the pass book/statement of accounts sent to me/us. Individual notice
regarding the change of interest is expressly waived by me/us.
7.2-3
6.5 In case of loans with floating rate of interest, I/We shall abide by the option exercised by me/us and
sanctioned by the Bank with regard to reset dates which is linked either to the date of first disbursement of
the loan / credit limit or to the date of review of Repo rate.
6.6 I/We agree that the Repo rate prevailing on the date of first disbursement, whether partial or full,
shall be applicable till the end of the month during which the RBI policy rates are revised.
7. I/We do hereby put on record and confirm that on demand from the beneficiary under the said
guarantees the bank will be entitled in its absolute and unfettered discretion except in the event of the
Bank being restrained by an order or injunction to make payment of whole or part of the amount of the said
guarantee or any of them as it may be called upon to do by such beneficiary without going into the question
of validity propriety or legality of the said demand and without any reference to me/us and that I/we shall
not have any right to question in any way whatsoever the Bank's making such payment and I/we shall
always be bound by it. Any request of demand made to or upon you by the beneficiary or beneficiaries of
all or any of such guarantees for payment/s of any sum or sums of money shall be sufficient authority from
me/us to the Bank for making such payment/s.
8. I/We agree that in case the invocation of the guarantee and/or payment of the amount thereof is
stayed by any Court of Law, I/we shall pay commission to the bank on the amount of the guarantee in
question at the rates as applicable for issue/extension of bank guarantees for the period for which the bank
is restrained from making payment of the guaranteed amount, irrespective of whether ultimately the Bank
has to pay the guaranteed amount or not.
9. This counter guarantee will extend to any extension of the guarantee/s for which I/we may from time
to time and which the Bank may agree to grant at my/our request subject to the Bank's absolute right and
discretion whether to extend the guarantee/s or not and without casting any obligations on the Bank for
extending the said guarantee/s.
10. This guarantee shall be continuing security binding on me/us, our successors and assigns and shall
remain valid until all the guarantees issued hereunder are duly cancelled and returned to the Bank and
further that it shall not be considered as wholly or partially satisfied or exhausted by any payment/s made
by me/us from time to time to the beneficiary of the guarantees.
11.. This counter-guarantee is without prejudice to and in addition to any other security or securities held
or which may be held by the Bank hereafter on account or in relation to the said guarantees.
12. The giving or granting of time or any extension thereof to me/us or the neglect, omission or
forbearance on the part of the Bank in requiring or enforcing payment of any moneys due hereunder or any
other variations, modifications or amendments to any agreement between me/us and the Bank shall not in
any way prejudice limit, restrict or affect this guarantee as we shall be considered as principal debtors in
respect of all the guarantees covered herein above.
7.2-4
13. This counter guarantee and indemnity shall be irrevocable and shall be binding on me/us and each
of us jointly and severally and also on my/our respective heirs, executors, administrators, estates and
effects jointly and severally/our successors and assigns (whether statutory or contractual).
14. I/We and each of us shall be liable hereunder to you jointly and each severally. On the death of any
one or more of us, our heirs, executors, administrators, legal representatives, estates and effects (as the
case may be) shall be liable jointly and severally with the survivor or survivors.
15. The liability incurred by us and each of us hereunder shall not in any way be prejudiced or affected
by and change in our partnership firm whether by death or retirement or insolvency of any partner or by
admission of any new partner or partners or otherwise howsoever even though the firm may become a
sole proprietary concern and all the partners for the time being of the firm or the sole proprietor and
his/their respective heirs, executors, administrators, legal representatives, estates and effects, as the case
may be, shall be liable to you hereunder, jointly and severally.
16. I/We hereby agree as a precondition of the loan/advance given to me/us by the Bank that in case
I/We commit default in the repayment of the loan/advances or in the repayment of interest thereon or any
of the agreed instalment of the loan on due date/s, the Bank and/or Reserve Bank of India will have an
unqualified right to disclose or publish my/our name/s or the name of our company/firm/unit and its
directors/partners/proprietor as defaulter in such a manner and through such medium as the
Bank/Reserve Bank of India in their absolute discretion may think fit.
17. I / We hereby undertake and covenant that the Bank may avail the services of the statutory auditors
engaged by me / us from time to time for the purpose of obtaining Stock Audit / Balance Sheet/ A&L
Statements / Certification of end use of funds / Progress Reports / Operating Statements/ Inspection
Reports and other such financial statement(s) duly certified on quarterly basis. In the event of any of these
certification / statement(s) turning out to be incorrect / fudged / false, Bank is at liberty to initiate all / any
kind of legal action against me / us and as well as the Auditors, after giving prior due notice of 7 days. I/we
specifically undertake that all extant Reserve Bank of India guidelines, modified from time to time would be
binding upon me / us and my / our Auditors.
18. ** The borrower Company agrees and undertakes that No Director / Partner / Member / Trustee, as
the case may be, of the borrower has been declared to be a wilful defaulter and neither the name of the
Borrower nor its Director(s) figure in any list of defaulters circulated by RBI or any Bank and financial
institution or any Credit Information Companies and if such a person is found to be in the Board of the
Borrower Company, expeditious and effective steps will be taken for his / her removal from the Board.
19. The Borrower hereby gives specific consent to the Bank/Lender for disclosing / submitting the ‘financial
information’ as defined in Section 3 (13 ) of the Insolvency and Bankruptcy Code, 2016 ( ‘Code’ for brief )
read with the relevant Regulations/ Rules framed under the Code, as amended and in force from time to
time and as specified there under from time to time, in respect of the Credit/ Financial facilities availed
from the Bank/ Lender, from time to time, to any ‘Information Utility’ ( ‘IU’ for brief ) as defined in Section 3
( 21 ) of the Code, in accordance with the relevant Regulations framed under the Code, and directions
issued by Reserve Bank of India to the banks from time to time and hereby specifically agree to promptly
7.2-5
authenticate the ‘financial information submitted by the Bank/Lender, as and when requested by the
concerned ‘IU’
20. I/We hereby agree and consent to the Bank for the disclosure of all or any such
i. information and data relating to me/us
ii. information or data relating to my/our obligations as borrower/s in any credit facility granted/to be
granted by the Bank and availed by me/us and
iii. default if any, committed by me/us in discharge of my/our obligations

as the Bank may deem appropriate and necessary, to disclose and furnish to Credit Information Bureau
(India) Ltd., and any other agency authorised by Reserve Bank of India in this behalf.
21. I/We further agree and consent that the
i. Credit Information Bureau (India) Ltd., and any other agency so authorised may use, process the
said information and data disclosed by the Bank in the manner as deemed fit by them and
ii. Credit Information Bureau (India) Ltd., and any other agency so authorised may furnish for
consideration, the processed information and data or products thereof prepared by them, to Banks /
Financial institutions and other credit grantors or registered users, as may be specified by RBI in this
behalf.
*** The common seal of M/s. ................................................................................. was hereunto affixed

pursuant to a resolution passed by the Board of Directors at their meeting held on .......................... in the
presence of ................................................................. a director of the company who has affixed his
signature hereto.
Yours faithfully
Signature
Note: * strike out whichever is not applicable
** applicable only for non individual borrowers.
*** applicable in case of counter-guarantee given by a limited company and Obtention of
Common Seal is optional and
not a mandatory requirement unless it is stipulated in the Memorandum and Articles
of association of the Company.
7.2-6
F44C Special
Adhesive
Stamp as
payable for
Counter Guarantee Indemnity
( to be executed by parties in case of
Deferred Payment Guarantee facility/
Usance Bills Acceptance facility )
Place: ...............................
Date ................................
From
..........................................................................
..........................................................................
..........................................................................
To
Indian Bank
.......................................
1 Whereas we .................................................................................. have made arrangements with

............................................................................................................................... (Name and address of the
seller) for purchase of ..........................................................................................................................
(details of machinery etc.) at a cost of ` .................................
2 And whereas ............................................................................................ (Name of the seller) have

agreed to grant us deferred payment terms towards the cost of the machinery.
3 And whereas as per the terms ` ................................ is payable by us as advance and the balance
of ` ........................ together with interest of ................ Totalling `................................ is payable in
instalments of .............................. months.
4 And whereas ....................................................................................... (Name of the seller) have

required us to give a Bank Guarantee for the amount of the instalments due and payable by us towards the
cost of the machinery.
7.2-7
or
$
And whereas ................................................................................... (Name of the seller) have
agreed to draw bills of exchange, for the amount of instalments due and payable by us, on us/our bankers
and required us to accept such bills/get the bills accepted by our bankers.
5 And whereas we have required you to issue a Deferred Payment Guarantee thereby guaranteeing
due payment of the instalments on the due dates to ....................................... ............................................
on our behalf.
or
$
And whereas we have required you to accept the bills of exchange to be drawn on you by
...................................................................................... for the amount of instalments payable as aforesaid.
6. And whereas you have agreed to issue a Deferred Payment Guarantee for payment of instalment
amounts more detailed in Schedule I annexed hereto
or
$
And whereas you have agreed to accept usance bills drawn on you as more fully detailed in
Schedule II annexed hereto and on the execution of a guarantee in your favour by me/us/our Managing
Director ............................................................................ in his personal capacity.
7. And whereas we have agreed to the above conditions.
8. Now this guarantee witnesseth that we .......................................................................... through

@
................................................................................ Managing Director/Director(s)/ Secretary of the
company, who has been duly authorised to issue this guarantee as per resolution dated ................... and
@
Shri ............................................................................ Managing Director/Directors/Director of the
company in his personal capacity, jointly and severally guarantee the due payment of all sum or sums of
money that may be paid by you at any time or times in respect of the Deferred Payment Guarantee
issued/Usance bills accepted by you on our behalf.
9. We undertake to indemnify you at all times and keep you harmless from all claims and demands
made and all actions and proceedings taken against you under the guarantee/bills referred to above.
10 We further undertake to furnish to you such securities as may be demanded by you at any time in
future either when the guarantee/acceptance in force or a claim is received under the guarantee/accepted
bills.
11. We agree to pay commission at ............ % per annum on the above guarantee. We further agree
and undertake to pay any revised/enhanced commission charges with effect from the date of issuance of
the guarantee or for any subsequent period and the bank is hereby authorised to revise/enhance the
commission as per their policy from time to time without further notice to us.
7.2-8
12. We further agree that this counter guarantee shall be irrevocable and continuing guarantee for any
sum of balance that may be due at any time upon the said amount in respect of above referred
guarantee/acceptance given by you.
13. It shall be open to the Bank to make the payment to the party in whose favour the Bank has given
the guarantee/accepted the bills on our behalf and at our instance as and when it is demanded by the said
party and any dispute whatsoever between us and the said party in regard to the quantum of the amount
payable or the liability to pay, will not affect the right of the Bank to call upon us to reimburse it with the
amount so paid by the Bank under the terms of the guarantee/usance bills.
13.1 I/We agree that in case the invocation of the guarantee and/or payment of the amount thereof is
stayed by any Court of Law, I/We shall pay commission to the bank on the amount of the guarantee in
and bear interest at the same rate. or at such other rates/rests/spread as may be prescribed by the Bank
from time to time, on all such moneys as I / we may be liable to pay under the counter-guarantee and that
the Bank may proceed against and recover from any of the property as including any credit balance held
by the Bank or any security for the time being held by the Bank on our account by sale or otherwise and to
allocate and supply the net proceeds of sale and realisation thereof and any other moneys in the Bank and
standing to our credit or belonging to us on any account whatsoever independently the one or the other in
such order and in such manner as the Bank think fit in or towards payment of any amount payable by us to
the Bank in terms of this deed
Premium............%
interest.
01.10.2019.
7.2-9
the loan / credit limit or to the date of review of Repo rate
17. ** The borrower Company agrees and undertakes that No Director / Partner / Member / Trustee, as the
case may be, of the borrower has been declared to be a wilful defaulter and neither the name of the
7.2-10
concerned ‘IU’
ii. information or data relating to my/our obligations as borrower/s in any credit facility granted/to be
granted by the Bank and availed by me/us and
as the Bank may deem appropriate and necessary, to disclose and furnish to Credit Information Bureau
said information and data disclosed by the Bank in the manner as deemed fit by them and
behalf.
Schedule I
Deferred payment scheme
Cost Price
Advance against order
Balance amount payable
Interest on the above
Instalment payable
Number of instalments
7.2-11
Schedule II
Particulars of usance Bills Accepted
Number of instalments
Discount charges
Principal amount covered by the bills
S.No. Period (months) Instalment amount (`.) Discount rate(`.) Discounting Total amount of
Charges Usance Promissory
Notes (`.)
Signature
$- Delete whichever is not applicable

@- Use appropriate designations as applicable
** Applicable only for non individual borrowers.
 Note: Document not to be attested
7.2-12
F44D
Special Adhesive
Counter-guarantee Stamp as
(to be obtained for Bid Bond Guarantees) payable for
Indemnity
Place .............................
Date .............................
Indian Bank
.........................................
Dear Sirs
1. In consideration of the Indian Bank, agreeing at our request to execute a guarantee (as per copy
attached) for ` .................................... (Rupees ...................................................................) favouring
.............................................. we, M/s. ............................................................................................... do
hereby agree and undertake to indemnify and keep indemnified the Indian Bank, of from and against all
losses, actions, costs consequences, charges, expenses, claims and demands which the Indian Bank may
sustain by reason or on account of its agreeing as above or howsoever in the premises.
2. We further agree and undertake not to prefer any claim of whatsoever nature against the Bank
pertaining to any act or action the Bank may adopt in its sole discretion in connection with the aforesaid
guarantee.
3. We agree that in case the invocation of the guarantee and/or payment of the amount thereof is
stayed by any Court of Law, I/we shall pay commission to the bank on the amount of the guarantee in
4. This counter-indemnity will extend to any extension or extension of the guarantee bond referred to
herein for which we may apply from time to time and which the Bank may agree to grant at our request
subject to the Bank's absolute right and discretion whether to extend the guarantee bond or not and
without casting any obligation on the Bank for extending the said guarantee bond.
5. We covenant with the Indian Bank that in the event of any adverse fluctuations in the foreign
exchange rate for any reason whatsoever, including devaluation of the Indian Rupee, the higher cost of
foreign currency in terms of the Indian Rupee, shall be borne and paid by us, the intention being that all
foreign exchange risk will be on account of us.
7.2-13
6 We agree to pay commission at ............ % per annum on the above guarantee. We further agree
and undertake to pay any revised/enhanced commission charges with effect from the date of issuance of
the guarantee or for any subsequent period and the bank is hereby authorised to revise/enhance the
commission as per their policy from time to time without further notice to us.
7.1 I/We hand you herewith my/our DPN/Joint and Several Demand Promissory Note of date for
`.............................. (Rupees ...................................................................................................................) as
cover for the above facility allowed to me/us.
I/We hereby authorise the Bank to charge and debit the said account with interest at the rate of
and bear interest at the same rate or at such other rates/rests as may be prescribed by the Bank from time
to time, on all such moneys as I / we may be liable to pay under this counter-.guarantee and that the bank
may proceed against and recover from and of our property as including any credit balance held by the
bank or any security for the time being held by the bank on our account by sale or otherwise and to
allocate and apply the net proceeds of sale and realisation thereof and any other moneys in the bank's
hands standing to our credit or belonging to us on any account whatsoever independently the one or the
other in such order and in such manner as the bank may think fit in or towards payment of any amount
payable by us to the bank in terms of this deed.

Premium............%
interest.
01.10.2019.
7.2-14
the loan / credit limit or to the date of review of Repo rate.
7.7 I / We hereby undertake and covenant that the Bank may avail the services of the statutory auditors
7.8. The Borrower hereby gives specific consent to the Bank/Lender for disclosing / submitting the
‘financial information’ as defined in Section 3 (13 ) of the Insolvency and Bankruptcy Code, 2016 ( ‘Code’
for brief ) read with the relevant Regulations/ Rules framed under the Code, as amended and in force from
time to time and as specified there under from time to time, in respect of the Credit/ Financial facilities
availed from the Bank/ Lender, from time to time, to any ‘Information Utility’ ( ‘IU’ for brief ) as defined in
Section 3 ( 21 ) of the Code, in accordance with the relevant Regulations framed under the Code, and
directions issued by Reserve Bank of India to the banks from time to time and hereby specifically agree to
promptly authenticate the ‘financial information submitted by the Bank/Lender, as and when requested by
the concerned ‘IU’
7.9 ** The borrower Company agrees and undertakes that No Director / Partner / Member / Trustee, as
Yours faithfully,
7.2-15
F63
Covering letter for loans and advances Special Adhesive
for which there are no special agreements Stamp as
payable for
Indemnity
Place ......................................
Date ......................................
From
..........................................................................
..........................................................................
To
The Branch Manager, Indian Bank
.......................................................... Branch
Dear Sir,
...........................................................facility of `..............................allowed/sanctioned to me/us.
# 1. I/We hand you herewith my/our DPN/Joint and Several Demand Promissory Note of date for
`.............................. (Rupees ...................................................................................................................) as
cover for the above facility allowed to me/us.
2.1. I/We hereby authorise the Bank to charge and debit the said account with interest at the rate of
and bear interest at the same rate.
Premium............%
interest.
01.10.2019.
7.2-16
sanctioned by the Bank with regard to effective dates for change in interest rate which is linked either to
the date of first disbursement of the loan / credit limit or to the date of review of Repo rate
2.7 Notwithstanding anything contained herein, in the event of myself/ ourselves remitting any
instalment of principal or interest or any part of the dues, after the default, within the limitation period of
three years from the date of default, such remittance shall give a fresh life on limitation and in such
instances the original terms of sanction would get re-inducted without necessitating fresh documentation.
3. I/We further agree to pay all expenses and charges such as service charges, processing charges,
incidental charges, godown charges, godown inspection charges, typing and postage expenses, legal
notice expenses, fees/charges towards Information Utilities for electronic storage of financial information
etc., which the bank may incur.
4. In case of cash credit/overdraft account, I/We agree that the demand promissory note for
`............................. executed by me/us in bank's favour for the amount of cash credit/overdraft granted to
the extent of `............................ and this agreement are to operate as a continuing security for the ultimate
balance with interest thereon that may be payable to the Bank upon the said cash credit/ overdraft account
and the said account is not to be considered to be closed for the purpose of this security and the security is
not to be considered as exhausted merely by reason of the said account being brought to credit at any time
or from time to time.
5.1* The Term loan and any loan under non-equated monthly/quarterly/half-yearly instalments scheme
(under this scheme apart from instalment towards principal, interest is payable as and when debited and/or
charged) will be repayable in ................ monthly/quarterly/half-yearly instalments (with or without holiday
period of ............. months) commencing from ............................. and provided that in case of default in
payment of any one instalment or any part thereof or any other irregularity on the part of the Borrower(s),
the entire balance then outstanding with interest, costs, commissions and charges shall, if the bank so
chooses, at once become due and payable.
7.2-17
5.2* The Term loan and any loan under equated monthly/quarterly/half yearly instalments (EMI) scheme
will be repayable in ................. equated monthly/quarterly/half-yearly instalments (with or without holiday
period of ............. months) commencing from .................................................................. and provided that
in case of default in payment of any one instalment or any part thereof or any other irregularity on the part
of the Borrower(s), the entire balance then outstanding with interest, costs, commissions and charges
shall, if the bank so chooses, at once become due and payable. However, for the convenience of the
borrower(s), Equated Monthly Instalment (EMI) including interest component is arrived at
`........................... I/We confirm that my/our liability to the bank will be extinguished only when the
outstanding in the cash credit/overdraft/..................................................... loan account become nil on
payment of residual amount, if any. In case the amount of loan availed/disbursed is less than
`.......................…….., then the amount of instalment payable shall be reduced pro-rata. Wherever
specifically permitted, interest for the holiday period shall be added with the principal amount and EMI will
be calculated for the remaining repayment period of the loan. I/We further agree that in case of floating
rate of interest, the bank has the option to reduce or increase the amount of EMI or extend the repayment
period consequent upon changes in the bank's MCLR/Spread.
6. I/We agree to maintain sufficient balance in my/our Savings Bank/ Current account
No........................................... and I/We hereby irrevocably authorise you to debit the account for monthly
instalments, interest, other charges due and credit the said loan account.
7. I/We agree that when there is a default by me/us in repayment of loan instalment and/or servicing of
interest beyond ninety days or any other period stipulated by Bank under the directives of RBI, all my/our
borrowal accounts shall be categorised as Non-Performing Asset (NPA) and such categorisation entails
disqualification of me/us from seeking
i. additional/adhoc credit facilities (fund based or non-fund based)
ii. waiver of overdue interest charges
iii. softening recovery measures by the Bank, etc.
8. On Demand, I/We agree to deliver to the Bank post-dated cheques for the Equated Monthly
Instalments and warrant that the cheques will be honoured on first presentation. Any non-presentation of a
cheque due to any reason will not affect the liability of me/us to pay the monthly instalments or any other
sum. I/We agree to forthwith replace the cheques/issue fresh cheques, if required by the Bank. I/We shall
not be entitled to call upon the Bank to refrain from presenting any cheque for payment and if I/We do so,
the Bank shall nevertheless be entitled to present the cheques for payment and in the event of dishonour,
the provisions under Chapter XVII of the Negotiable Instruments Act, 1881, shall apply.
9. I/We declare and confirm that on my/our/any one's retirement, the outstanding amount of the loan
sanctioned to me/us will become repayable at once. The Bank may, at its discretion, continue the loan
provided satisfactory arrangement for repayment acceptable to the Bank has been made by me/us.
10. In the event of cessation of my/our/any one's business/service with my/our employers by way of
resignation or otherwise (except as a result of death or retirement), I/We undertake to repay the Bank
7.2-18
forthwith on demand, the balance principal amount of the loan, or the balance then outstanding, whichever
is higher.
11. In the event of my/our/any one ceasing to be in business/service of my/our employers whether by
retirement, resignation, death or by operation of law or for any other reason or cause whatsoever and
howsoever, the Bank shall be entitled at its discretion, to write to my/our employers to appropriate and set
of (i) any amount which may then be payable by the employers to me/us whether by way of salary,
allowances, bonus, other remuneration of any payment (whether ex-gratia or otherwise) whatsoever and
(ii) any amount that may be standing to the credit of any account which I/We may have with my/our
employers or with the Bank, either singly or jointly, towards repayment of the balance that may be then
remaining due and payable by me/us in my/our said loan account together with interest thereon at the
applicable rates up to the date of such repayment. Any such appropriation made by the Bank or by the
employers shall be conclusive and binding on me/us and on my/our estate both in and out of court. In any
event, my/our liability to make repayment of the entire dues immediately shall remain valid till the entire
amount with applicable interest as up to the date of payment has been realised by the Bank whether by
way of recovery from me/us or from my/our employers or otherwise.
12. The undertakings, authority and agreements herein contained shall be irrevocable as long as I/We
continue to be liable to the Bank in the said loan account..
13. I/We also agree that the Bank shall also be entitled to transfer the loan account to any of the
branches of the Bank after giving due notice to me/us.
14. I/We declare that I/We have understood all the terms and conditions for the sanction of this loan
including the terms and conditions as mentioned in the sanction letter which forms part of this agreement
and agree to abide by the same and also to the rules and regulations which are now in force and also
those which may be altered, revised, amended, added from time to time by the Bank/The Reserve Bank of
India/ Central Government/ State Government. I/We further agree that in the event of failing to do so, the
Bank will have a right to recall the advance without prejudice the Bank's right to take such appropriate
action as the Bank may deem it fit and proper. I/We shall be deemed to have received notice of change in
the terms and conditions whenever the changes are displayed/notified by the Bank in the notice board kept
in the branch premises and/or published in newspaper. Individual notice regarding the changes in the
terms and conditions is expressly waived by me/us.
engaged by me / us from time to time for the purpose of obtaining Stock Audit / Balance Sheet / A&L
7.2-19
concerned ‘IU’
18. I/We hereby agree and consent to the bank for the disclosure of all or any such
ii. information or data relating to my/our obligations in any credit facility granted/to be granted, by
the bank and availed by me/us and
as Indian Bank may deem appropriate and necessary, to disclose and furnish to Credit Information Bureau
i. Credit Information Bureau (India) Ltd., and any other agency so authorised may use, process
the said information and data disclosed by the bank in the manner as deemed fit by them and
consideration, the processed information and data or products thereof prepared by them, to
Banks / Financial Institutions and other credit grantors or registered users, as may be
specified by RBI in this behalf.
Yours faithfully,
(Signature/s of borrower/s)
 Note : * Strike out whichever is not applicable

# Not applicable for Term Loans
Chartered Accountants
7.2-20
F107
Letter of undertaking for advance against uncleared effects
Place .............................
Date .............................
To
The Manager
Indian Bank
...........................................................
Dear Sir,
Withdrawal against local uncleared cheques
I/We confirm having requested you to allow me/us withdrawals in my/our .....................................
account with you against local uncleared cheques to the extent of ` .......................... (Rupees ..............
......................................................................................................) outstanding at any one time provided
such local uncleared cheques do not include cheques drawn by myself/ourselves.
2. I/We further confirm that in case of any of the cheques or other effects against which withdrawals
are allowed are returned unpaid for whatever reason, I/we would be prepared to adjust the account
immediately and pay interest at the applicable rate on the temporary overdrafts so created.
3. I/We further confirm that this facility allowed to us on account of our above request, is in your
absolute discretion and may be discontinued at any time without any previous intimation to us.
4. I/We agree and confirm that it is on the faith of this undertaking that you have granted us the facility
as aforesaid. I/We declare that the cheques which we shall deposit for clearance will be out of genuine
commercial transactions obtained for value.
and bear interest at the same rate.
* Repo Rate Revision in RBI Policy Repo rate will be effected from 1st of succeeding month.
Premium............%
7.2-21
interest.
01.10.2019.
the date of first disbursement of the loan / credit limit or to the date of review of Repo rate.
7.2-22
concerned ‘IU’
ii. information or data relating to my/our obligations in any credit facility granted/to be granted by
the Bank and availed by me/us and
iii. default, if any, committed by me/us in discharge of my/our obligations
to Credit Information Bureau (India) Ltd., and any other agency authorised by Reserve Bank of India in this
behalf, as the Bank may deem appropriate and necessary
11. I/We further agree and consent that
said information and data disclosed by the bank in the manner as deemed fit by them and
behalf.
Yours faithfully
7.2-23
F117
Letter from borrower and guarantor for Conversion loan

(Separate letters to be obtained for each facility)
Place .............................
Date .............................
To
The Manager
Indian Bank
............................................................. Branch
Dear Sir,
In respect of the Cash Credit/Overdraft/loan to the extent of ` ..................... availed by me/us and
secured, inter alia, by the guarantee of Shri ....................................................................................... Shri
.................................................................................................... etc, and/or by the hypothecation
agreement/Mortgage deed/Statutory declaration dated ..................... dated ..................... respectively, a
sum of ` ............................. exclusive of interest from ....................... (date) is remaining outstanding and
overdue. In this connection, as agreed by you at my/our request, I/we undertake to repay the above debt in
instalments and on the dates listed hereunder, against the continuance of the above securities and on the
conditions contained in the aforesaid deed of hypothecation/mortgage deed/statutory declaration together
with interest at the rate of .........……..... (factoring in as spread**) per cent per annum over the Repo Rate*
(The current Repo rate being .............. %, the effective rate of interest shall be ............... % per annum) on
the daily balance with …………………………………. rests, such interest being added to the balance
outstanding on the last working day of every financial/calendar………….........………............ (Mention here
month/quarter/half-year/year as the case may be) and the said interest, if unpaid, will become part of the
amount advanced and bear interest at the same rate.
** Spread : Prime Spread ............%+ Credit Risk Premium............%+Business Strategy Premium............%
I/We agree that the Bank is entitled to charge a higher rate of interest than the rate stated above as
interest.
7.2-24
01.10.2019.
. I/We further agree that in the event of default in payment of interest/instalments on the respective
I/We shall be deemed to have received notice of change in the rate of interest whenever the
In case of loans with floating rate of interest, I/We shall abide by the option exercised by me/us and
the date of first disbursement of the loan / credit limit or to the date of review of Repo rate.
I/We agree that the Repo rate prevailing on the date of first disbursement, whether partial or full,
I / We hereby undertake and covenant that the Bank may avail the services of the statutory auditors
** The borrower Company agrees and undertakes that No Director / Partner / Member / Trustee, as
7.2-25
Sl.No. Instalments
Amount Date
Yours faithfully, I/we agree to the above arrangement
7.2-26

7.2 List of Forms - Based On External Benchmark : Linked To REPO RATE

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7.2 List of Forms - Based On External Benchmark : Linked To REPO RATE

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 Formats of Forms

7.2 List of Forms – Based on External

D.No List of Forms Page No

i. information and data relating to me/us

iii. default if any, committed by me/us in discharge of my/our obligations

*** The common seal of M/s. ................................................................................. was hereunto affixed

1 Whereas we .................................................................................. have made arrangements with

2 And whereas ............................................................................................ (Name of the seller) have

4 And whereas ....................................................................................... (Name of the seller) have

7. And whereas we have agreed to the above conditions.

8. Now this guarantee witnesseth that we .......................................................................... through

i. information and data relating to me/us

iii. default if any, committed by me/us in discharge of my/our obligations

20. I/We further agree and consent that the

$- Delete whichever is not applicable

** Spread : Prime Spread ............%+ Credit Risk Premium............%+Business Strategy

i. additional/adhoc credit facilities (fund based or non-fund based)

ii. waiver of overdue interest charges

iii. softening recovery measures by the Bank, etc.

 Note : * Strike out whichever is not applicable

Letter of undertaking for advance against uncleared effects

iii. default, if any, committed by me/us in discharge of my/our obligations

11. I/We further agree and consent that

** Applicable only for non individual borrowers.

Letter from borrower and guarantor for Conversion loan

Yours faithfully, I/we agree to the above arrangement

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