Axis Bank|

CONFIRMATION LETTER

Date: _____________

To
<Customer Name>

<<Address >>

Dear Sir/Madam,

Sub: Confirmation for conversion of existing interest rate/spread for loan a/c
no._________________________________

You have availed ___________________ loan of Rs. __________________/-(“Facility”) from Axis

Bank Limited (the “Bank”) under the loan account number as mentioned above as per the Sanction
Letter ref no <_______________________________________>(“Sanction Letter”) / Loan Agreement
No. <_______________________________> Dated <______________> (“Loan Agreement”).

We have also received your request dated [________________] for conversion of existing interest
rate in respect of your abovementioned Facility and we hereby confirm that, we have decided to
convert the existing interest rate applicable on the Facility on the terms and conditions, as mentioned
below:

Please note Reserve Bank of India (RBI) vide its recent Circular/Guideline on External Benchmark
Based Lending dated September 4, 2019 (“RBI Guidelines”) has issued amendments to the
instructions contained in the Master Direction on Interest Rate on Advances dated March 3, 2016
whereby it has been decided to link all new floating rate personal or retail loans (housing, auto etc)
and floating rate loans to Micro & Small enterprises extended by banks w.e.f. October 1, 2019.

Accordingly, in terms of the said RBI Guidelines as aforesaid, for the accounts being opened on or
after 1st October, 2019, the interest rate to be charged, shall be linked to the Repo Rate.

A) Sanction Letter No. _____________ dated ___________:

Pursuant to the conversion of the existing interest rate applicable on the Facility to the REPO RATE,
the pricing details of your Facility shall undergo the following changes vis-à-vis what was already
conveyed/agreed by you vide the said Sanction Letter:

Parameters As per existing terms (Base As per Revised Terms

Rate/BPLR/MRR/MCLR/Rep linked to Repo Rate*
o Rate))
Benchmark Interest Rate ____% ____%
Markup ____% ____%
Applicable Rate of Interest ____% ____%
Equated Monthly Installment (EMI) INR*
Tenure (in Months)*

Note: * Revised EMI or Tenure is not applicable for Super Saver Home Loan & LAPOD cases. In
Super Saver Home Loan & LAPOD cases after Rate conversion there will be no change in EMI or
Tenure.
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Details of PLR Type

 REPO RATE as applicable on the date of disbursement.

 Bank shall publish REPO RATE on a monthly basis. Prevailing month REPO RATE will be
displayed on axis bank website http://www.axisbank.com/.
 It shall be the responsibility of the Borrower(s) to inquire or avail from Axis Bank the details
thereof on the reset date specified in the agreement.
 Your account repriced in a particular month shall be linked to the REPO RATE prevailing for
that month.
 Axis Bank will reset the rate once in three months for all accounts on predefined date. The ef -
fective rate of Interest will be REPO RATE + Spread.
 The REPO RATE prevailing on the day the account is repriced and the credit limit is set up by
the Bank for utilization will be applicable till the next reset date, irrespective of the changes in
the benchmark during the interim period.
 Bank is entitled to change the reset frequency at any point of time.
 Your rate of interest will change with the change in REPO RATE prevailing on the date of re-
set
 Bank shall have absolute right to decide and apply the spread over the REPO RATE,
”Spread” shall consist of credit risk premium (which is subject to change in case there is sub-
stantial change in the Borrower’s credit assessment as agreed in the Loan Agreement), oper-
ating costs and other costs.
 The same will be reset periodically once in three years from the date of disbursement.
 For Super Saver Home Loan (ODSSV) and , EMI or ODLAP, Tenure will not under go any
change due to change in ROI (Rate of Interest), as DP (Drawing power) reduction schedule
once drawn does not change with the change in ROI (Rate of Interest). Only interest charged
will change as per the limit utilization. In Super Saver Home Loan (ODSSV), the deduction ev-
ery month comprises of the pre-defined DP reduction schedule and the interest as per utiliza -
tion of the limit. The EMI depicts an indicative amount to be paid derived by considering the
limit is fully utilized

B) Loan Agreement No.______________________________ dated _____________:

Pursuant to the conversion of the existing interest rate applicable on the Facility to the REPO RATE,
the relevant clauses/ terms of Loan Agreement shall stand amended as per the following
amendments vis-à-vis what was already conveyed/agreed by you in the existing Loan Agreement:

I. The following clause in the Loan Agreement shall stand modified as follows:

INTEREST AND OTHER CHARGES:

 The Borrower(s) agrees to pay interest on the loan as per the Schedule to this Agreement
and which shall be determined at all times in relation to and linked to the REPO RATE and
the Interest rate at monthly rest calculated on the daily balance of the loan amount. The
Borrower(s) is aware that the above said rate i.e. REPO RATE, is as defined hereinabove in
this Agreement and declared from time to time by the Bank.

 The Borrower(s) understands and confirms that the Bank shall at any time and from time to
time be entitled to change the rate of interest depending on the changes in the REPO RATE,
and such revised rate of interest shall always be construed as agreed to be paid by the
Borrower(s) and hereby secured. Borrower(s) shall be deemed to have notice of change in
the rate of interest whenever the change in the Interest Rate are displayed/notified in Bank’s
website and also at/by the branch as per the Scheme of the Bank.

 Axis Bank will have a right to (reset date decided for REPO RATE reset the interest rate on all
disbursed loans on a predefined date. The reset dates and frequency shall be displayed on
the Axis Bank Website.
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 The REPO RATE prevailing on the day the facility is repriced and the credit limit is set up by
the Bank for utilization will be applicable till the next reset date, irrespective of the changes in
the REPO RATE during the interim period.”

II. The following clause in the Loan Agreement shall stand inserted as follows:

Spread under REPO RATE:

The effective rate of interest will be REPO RATE + Spread. The Bank is free to decide the spread
over the external benchmark. Borrower understands and agrees that this, credit risk premium may
undergo change when Borrower’s credit assessment undergoes a substantial change. Further, other
components of spread including operating cost could be altered once in three years.”

The Borrower consents, agrees and confirms that Bank should be entitled to reset the Spread once in
three years and Borrower undertakes to pay interest at the rate as is fixed by the Bank on and from
such reset date from time to time.

Save and except the changes in the REPO RATE and Spread clauses mentioned herein above that
are applicable to your facility account, all other terms and conditions contained in the Sanction Letter
and the facility documents executed/to be executed by you shall remain unchanged and continue to
be applicable and binding upon you and this letter shall form a part and parcel of the Sanction Letter
and the facility documents executed by you and shall always be read in conjunction with the Sanction
Letter and facility documents.

In case of any further clarification/query please contact our below mentioned Asset Sales Center
(ASC)/Branch/Area office.

o The Borrower and the Mortgagor(s)/Guarantor(s) understand and agree that the said Repo
rate is subject to change from time to time and that the interest rate chargeable to the credit
facilities granted to the Borrower shall stand modified in accordance with the changes or
modifications introduced in the REPO RATE of the Bank from time to time and that the
Borrower shall be liable to pay interest to the Bank at such revised/modified rate as may be
applicable from time to time in relation to the REPO RATE of the Bank.

o The Borrower and the Mortgagor(s)/Guarantor(s) agree and confirm that pursuant to the
change in the reference rate of the Interest to the REPO RATE, the security remains
unchanged. The security created in favour of the Bank for the total loan of
Rs.____________________ Lakhs made available to the Borrower shall remain unchanged
and shall be available in favour of the Bank irrespective of the change in terms in the Rate of
Interest for the facilities.

o The Parties hereby agree and accept the terms and conditions specified as mentioned in this
letter and state that all the other terms and conditions as contained in the master loan
agreement shall remain unchanged and shall continue to be applicable and shall be binding
on the Borrower and the Mortgagor(s)/Guarantor(s).

o That all the terms and conditions, covenants, stipulations, clauses including all the provisions
contained in the Principal Deeds executed by the Borrower and the
Mortgagor(s)/Guarantor(s) shall remain unchanged and shall apply mutatis mutandis to the
modification viz. the change in the Rate of Interest applicable for the facilities as stated above.
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The Borrower and the Mortgagor(s)/Guarantor(s) confirm and agrees that this letter will always
be considered in conjunction with the agreement already executed in inception.

The Borrower also agrees that he/she will be sending this via email through his/her registered
email id and the same will be taken as a consent for proceeding with the ROI conversion/re -
duction request.

Administrative Charges

o The Bank has charged Rs __________ (including GST) administrative fees for conversion
from the existing rate of interest to the revised rate of interest as per the details tabulated
above.
o Please provide us an acknowledged copy of this letter for having accepted the above
modifications to this Sanction Letter (and Loan Documents) and agrees and undertake that
these modifications stated in this letter should form part of the Sanction Letter (and Loan
Document) and Binding on me/us as if these were incorporated in the Sanction Letter (and
Loan Document).

NOTE:

1. Any ROI conversion requests submitted at the service desk till 4:30 pm by 30 th/ 31st of a month will
be processed as per the above agreed rate. For requests submitted on or after 29 th of a month, will
have the applicable rate as per the rates declared by the bank on 3rd of the month.
2. The ------------------ is subject to change on the ‘Reset Date’ of every month and any such change is
at the sole discretion of the bank.

*The processing of the rate change request is subject to all documents received in order and
clearance of administrative fees.

Please Note: The next reset date of your loan account is _______. The ROI agreed to in this let-
ter is based on your current Repo rate and is subject to reset on the reset date.

*FOR AN INDIVIDUAL/

Name of Borrower / Co-Borrower Signature

Signed and delivered by

AXIS Bank Ltd by the hand
of its authorized signatory : Mr./Ms.___________________

Date:

Acknowledgement
______________________________________________________________________________
_______
I/We have read the terms & conditions mentioned in this confirmation letter & accept the same
unconditionally
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* IN CASE OF A COMPANY (if not applicable can be deleted)

IN WITNESS WHEREOF the common seal of the Company has been hereunto affixed the day and
year first hereinabove mentioned at................................

The Common Seal of.......... Ltd. has been affixed hereunto pursuant to the Resolution of the Board
of Directors dated.............in the presence of :
1.
2.
the Director/s and /or the..........., who have in token thereof , subscribed their signature hereto.

Signed and delivered by

AXIS Bank Ltd by the hand
of its authorised signatory : Mr./Ms.___________________

Date :

* IN CASE OF PARTNERSHIP FIRM (if not applicable can be deleted)

IN WITNESS WHEREOF the Partners of the Firm have set and subscribed their respective hands
hereto, the day and year first hereinabove mentioned at.................................

For................( Name of the Partnership Firm)

(Partners)

Signed and delivered by

AXIS Bank Ltd by the hand
of its authorised signatory : Mr./Ms.___________________

Date:

* IN CASE OF PROP. CONCERN (if not applicable can be deleted)

IN WITNESS WHEREOF the said Proprietor has set and subscribed his/her hand hereto, the day and
year first hereinabove mentioned at...........................................

For................ (Name of the Prop. Concern)

Proprietor

Signed and delivered by

AXIS Bank Ltd by the hand
Of its authorized signatory : Mr./Ms.___________________

Date: