To be printed in stamp paper of Rs.______________ (based on the respective Stamp Act applicable)
LOAN AGREEMENT BETWEEN
Mr A son of Mr. B, residing at (Address of the loan provider) AND
Mr. C son of Mr. D, residing at(Address of the borrower)
THIS AGREEMENT made and entered into at(Place—-) this (Date ———) BETWEEN Mr. A hereinafter called “the Lender” AND Mr.B hereinafter called “the Borrower” and reference to the parties hereto shall mean and include their respective heirs, executors, administrators and assigns;
WHEREAS the Borrower is in need of funds and hence has approached the Lender to grant her Rs. 1,00,000/- (Rupees One Lakh only) for a period of one year;
The amount is with interest @ 3% p.m.
AND WHEREAS the Lender has agreed to grant a loan to the Borrower, with interest, as the Lender and the Borrower have known each other for several years;
AND WHEREAS the parties hereto are desirous of recording the terms and conditions of this loan in writing;
NOW THIS AGREEMENT WITNESSETH and it is hereby agreed by and between the parties hereto as under:-
1. The Borrower hereto, requiring money, has requested the Lender to give her a with interest loan of Rs.1,00,000 /- (Rupees One Lakh only) @ 3 % p.m. to enable him to do an ——————————, to which the Lender has agreed.
2. The said loan is required by the Borrower for a period of one year, commencing from (Starting date) and terminating on (End date).
3. The Borrower hereby agrees and undertakes to return the loan of Rs. 1,00,000/- (Rupees One Lakh only), within the aforesaid period of one year and, gives his personal guarantee for the same.
4. The terms and conditions of this Agreement are arrived at by the mutual consent of the parties hereto.
5. That the borrower is known to the Lender as a Businessperson who just wanted to use the amount of Loan for Business best known to the borrower
6. As security against the amount provided as per abovementioned details the borrower without any pressure and out of his own will has provided following:
– Blank cheque vide Cheque no. ———- Of ————– Bank which is presently dated respectively as ————. This may be used after one year as per the terms mentioned above. The borrower undertakes along with this that he will never complain to bank, police or other authority that these cheques were lost or fraudulent. Also that the borrower legally undertakes that the signature done is correct and he will not change the bank signature and if he does so then he will provide us valid replacement cheques immediately;
All the above information provided is true and verified by both the parties and for the truthfulness, the parties will be responsible.
IN WITNESS WHEREOF the parties hereto have hereunto set and subscribed their respective hands the day and year first hereinabove written.
SIGNED AND DELIVERED by the Within- named Lender in the presence of
(Lender – Mr A) SIGNED AND DELIVERED by the Within-named Borrower in the presence of (Witness)
(Borrower- Mr. B)