1

LOAN AGREEMENT

This LOAN AGREEMENT made herein on this ______________________________:

BETWEEN
Mr. _______________ (Aadhar No. ________________________), S/o. _______________,
aged about _______________ years, having an address at No. _______________
_______________ _______________ _______________ _______________ _______________ hereinafter
called the Party of the FIRST PART or the “LENDER”.
AND
Mr. _______________ (Aadhar No. ________________________), S/o. _______________, aged
about _______________ years, having an address at No. _______________ _______________
_______________ _______________ _______________ _______________ hereinafter called the
Party of the SECOND PART or the “BORROWER”.

WHEREAS the terms LENDER - THE PARTY OF THE FIRST PART and in
short being mentioned as ‘LENDER’ for the purpose of the deed and the
BORROWER – THE PARTY OF THE SECOND PART wherever the subject context
so requires shall mean and include their respective heirs, successors, executors,
administrators, legal representatives, assignees or any other persons claiming
through them.

WHEREAS the BORROWER for the purpose of family emergency

(hereinafter called as the “Purpose”) approached the LENDER for financial
support for the above mentioned Purpose; WHEREAS the BORROWER had
availed loan to a sum of Rs. _______________ /- (In _______________) from the LENDER
on _______________.

WHEREAS the LENDER obliged for the above mentioned bonafide cause
and agreed for the disbursal of loan to the tune of Rs. _______________ /- (In Rupees
_______________ only) in lump sum or in instalments as demanded by the
BORROWER herein considering the meritorious profile of the BORROWER with
him, Further the BORROWER had also agreed to execute this Loan agreement,
OnDemand promissory notes along with Security Cheques to the LENDER when
it was insisted by him.

WHEREAS both the parties had accepted for the above and reduced the
same in to writing on the following terms and conditions:

NOW THE LOAN AGREEMENT WITNESSETH AS UNDER:-

1. The BORROWER had agreed to disburse a sum of Rs. _______________ /- (In

Rupees _______________ only) vide Cheque No. _______________ and _______________
respectively, bearing Account No: _______________ drawn from _______________
_______________ as demanded by the LENDER after executing this agreement
between both the parties herein.
 2

2. The BORROWER had agreed to repay the Principal amount as mentioned

above along with a fixed interest _______________ % per month (_______________ % per
annum) from the date of execution of this agreement and the BORROWER will
pay the said fixed interest of _______________ % on or before 3rd of every month and
further repay the entire loan amount of Rs. _______________ /- (In Rupees
_______________ only) within _______________ months from the date of the disbursal of
the Loan amount. If there is a delay in payment, the BORROWER must inform
the LENDER well in advance.

3. The BORROWER understands that they along with his successors, legal
representatives are jointly and severally liable for payment of the Principal and
the Fixed interest as mentioned in Clause 2 hereinabove. The Borrower shall be
entitled to pay instalments or the Principal or the full balance of capital and
interest at any time prior to the prescribed dates of payment. In any such event
interest shall be calculated up to the date of payment.

4. The BORROWER had also agreed to provide ON-DEMAND and Promissory

notes including SECURITY Cheques when insisted by the LENDER not in contra
with the terms and conditions as mentioned in the loan agreement herein for the
sums due at that period of time or for the entire sum whichever is higher.

5. The BORROWER had herewith agreed to repay the above-mentioned loan

without any default and upon wilful default or delay in paying the first
instalment as mentioned in Clause 2, the LENDER shall have the right to
foreclose the loan and demand the repayment of the entire principal and fixed
interest together with penal interest at the rate of _______________ % per annum
calculated on the principal till the date of settlement of entire dues and further
the LENDER is also at liberty to initiate appropriate legal proceedings upon the
BORROWER at the known pavilions of recovery process as accordance the
provisions stipulated under law.

6. The BORROWER had set the LENDER at liberty to proceed against him
with the security cheque along with the promissory note if provided to him at
the course of the debt/loan as mentioned supra in lieu to Clause (3 & 4) of the
deed, and the BORROWER is bound to oblige for the same.

7. This agreement shall become binding on the BORROWER AND LENDER

on and from the date first above written and it shall be in force till the entire
principal and the fixed interest payable by the BORROWER under this agreement
upon full satisfaction of the LENDER.

8. The LENDER hereby undertakes to maintain confidentiality about the

details of the purpose intended to be carried out by the BORROWER save where
such details have already been disseminated by the BORROWER in the public
domain or where the LENDER is permitted by the BORROWER in writing to
share such details with any person or agency
 3

9. The LENDER would issue a NO DUE CERTIFICATE to the BORROWER

after the completion of the entire LOAN amount.

10. The LENDER must inform _______________ months prior to repayment of

money with all due interests from the BORROWER in written.

11. ln the event of any dispute or difference arising between the Borrower and
the Lender as to their respective rights or obligations in terms hereof or with
regard to validity, interpretation, implementation or alleged breach of the terms
of this agreement or incidental thereto including any dispute as to the existence
or validity hereof, the parties shall attempt in the first instance to resolve such
dispute through negotiation. If the dispute is not resolved through negotiation
within 30 days after the commencement of such negotiation or such longer
period as the parties may agree in writing, then such dispute or differences shall
be referred to arbitration in accordance with the Arbitration and Conciliation
Act, 1996 by a Sole arbitrator appointed by the LENDER. The venue of the
arbitration proceedings shall be at Chennai and shall be governed by the rules of
the Arbitration and Conciliation Act of 1996. The decision of the Arbitrator shall
be final and binding on all parties to this agreement. The language used in the
arbitration shall be English.

12. The parties hereby agree that the entire jurisdiction has taken place in
Chennai and any disputes which are called for should be placed before the
Courts, tribunals and Ad hoc tribunals in Chennai.

IN WITNESS WHEREOF THE AFORESAID PARTY OF FIRST PART AND

PARTY OF SECOND PART HAVE SET THEIR HANDS ON THE DAY, MONTH AND
YEAR FIRST ABOVE WRITTEN.

WITNESSES:

1.
THE PARTY OF FIRST PART

2.
THE PARTY OF SECOND PART