Are you in need of a loan but don`t have any collateral to secure it? Then an unsecured loan may be the perfect solution for you. In India, unsecured loans are commonly used for personal expenses, business ventures, and debt consolidation. However, to protect both parties involved in the transaction, it is important to have a written agreement in place. Here is a sample unsecured loan agreement for India that you can use as a reference.
– Date of agreement:
– Lender`s name and address:
– Borrower`s name and address:
– Loan amount:
– Interest rate:
– Repayment terms:
1. Loan amount: The Lender agrees to lend the Borrower [insert amount] (the “Loan Amount”). The Loan Amount is to be used for [insert purpose] only.
2. Interest rate: The Borrower agrees to pay the Lender an interest rate of [insert rate] per annum on the outstanding balance of the Loan Amount. Interest is to be calculated on the basis of the actual number of days elapsed and a year of 365 days.
3. Repayment terms: The Borrower will repay the Loan Amount to the Lender in [insert number] instalments. Each instalment will be of equal amount and will be due on the [insert date] of each month, commencing from [insert date].
4. Prepayment: The Borrower has the right to prepay the Loan Amount prior to the due date without any penalty or additional charges.
5. Default: If the Borrower fails to make any payment on the due date, the Lender may take legal action against the Borrower to recover the Loan Amount along with the interest and any collection charges.
6. Governing law: This agreement is governed by Indian law, and any disputes arising out of or in connection with this agreement shall be settled as per the Indian Arbitration and Conciliation Act.
7. Entire agreement: This agreement constitutes the entire agreement between Lender and Borrower regarding the Loan Amount and supersedes all prior agreements and understandings, whether oral or written.
With this sample unsecured loan agreement, you can now protect yourself and your lender from any future disputes or misunderstandings. Always remember to read and understand the terms and conditions before signing any agreement.