LOAN AGREEMENT
THIS LOAN AGREEMENT (this Agreement) is MADE AND ENTERED INTO AT JAIPUR ON THIS 26TH AUGUST, 2021 BETWEEN:
Mr. ________________ son/Daughter of Shri ________________ residing at ________________ (hereinafter referred to as the “Lender”,) which expression shall, unless repugnant to the context or meaning thereof, be deemed to mean and include his heirs, administrators, executors, legal representatives OF THE FIRST PART;
AND
M/s ________________, a private company registered under Companies Act, 1956 having its registered office at ________________ acting through its Director Mr. ________________(hereinafter referred to as “the Borrower”) which expression shall, unless repugnant to the context or meaning thereof, be deemed to mean and include its respective administrators, executors, legal representatives, Successors OF THE SECOND PART;
The Borrower and the Lender shall hereinafter be referred to individually as “Party” or collectively as “Parties”.
WHEREAS the borrower is engaged in the business of solar power generation.
WHEREAS the Borrower is in need of funds and approached the Lender to grant Rs. _________/- (Rupees ____________ only) (the loan amount hereinafter shall be referred to as ‘the loan’ or “Loan” or “Loan Amount”) for a period of one year and lender has agreed to grant the loan. The Borrower hereby confirms that the funds are utilised for business purpose.
AND WHEREAS the lender is a director of the borrower Company.
AND WHEREAS the loan taken by the company is not considered as deposit as per rule 2 (1) (c) of the Companies (Acceptance of Deposit) Rules, 2014.
NOW THIS AGREEMENT WITNESSETH and it is hereby agreed by and between the parties hereto as under:-:
Loan Amount & Interest
1. The Lender promises to grant loan of ₹ ________________/- (Rupees ________________) to the Borrower and the Borrower promises to repay this principal amount to the Lender, with interest payable on the unpaid principal at the rate of 8.00 percent per annum, beginning from ________________, the amount of interest will payable on quarterly/Monthly basis.
Payment
2. This Loan is repayable within 7 day(s) of the Lender providing the Borrower a written notice of demand.
Sources of fund
3. The lender provides the loan amount to borrower from his owed funds not borrowed fund, the lender have to furnish a declaration in writing to the effect that the amount is not being given out of funds acquired by him by borrowing or accepting loans or deposits from others.
Purpose of Loan
4. The borrower company will utilise the loan amount for its business purpose only.
Category of Loan
5. The loan provide by lender to borrower is unsecured loan.
Default
6. Notwithstanding anything to the contrary in this Agreement, if the Borrower defaults in the performance of any obligation under this Agreement, then the Lender may declare the principal amount owing and interest due under this Agreement at that time to be immediately due and payable.
Costs
7. The Borrower shall be liable for all costs, expenses and expenditures incurred including, without limitation, the complete legal costs of the Lender incurred by enforcing this Agreement as a result of any default by the Borrower and such costs will be added to the principal then outstanding and shall be due and payable by the Borrower to the Lender immediately upon demand of the Lender.
Binding Effect
8. This Agreement will pass to the benefit of and be binding upon the respective heirs, executors, administrators, successors and permitted assigns of the Borrower and Lender.
Amendments
9. This Agreement may only be amended or modified by a written instrument executed by both the Borrower and the Lender.
General Provisions
10. Headings are inserted for the convenience of the parties only and are not to be considered when interpreting this Agreement. Words in the singular mean and include the plural and vice versa. Words in the masculine mean and include the feminine and vice versa.
Entire Agreement
11. This Agreement constitutes the entire agreement between the parties and there are no further items or provisions, either oral or otherwise.
Arbitration and Dispute Settlement
12. All disputes, differences and/or claims, arising out of this Agreement, whether during its subsistence or thereafter, shall be settled by arbitration in accordance with the provisions of the Arbitration and Conciliation Act, 1996 or any other statutory modification or re-enactment for the time being in force.
Jurisdiction and Governing Law
13. Subject to the Arbitration Clause mentioned above, this Agreement shall be governed and construed in accordance with the substantive laws of India and the parties hereto submit to the exclusive jurisdiction of the Courts, situate at the place of Jaipur, Rajasthan.
IN WITNESS WHEREOF, the parties have duly affixed their signatures under hand and seal on this SIGNED, SEALED, AND DELIVERED this 26th day of August, 2021 in front of the person below who is not involved with the contents of this document.
…………………
Mr. _________
(Lender)
For M/s _________
……………………
(Mr. _________)
(Borrower)
WITNESS DETAILS:
1.
Signature:…………………
Name:…………………..…..
Address: ……………………..
2.
Signature:…………………
Name:…………………..…..
Address: ……………………..
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