Sample Loan Agreement

Sample Loan Agreement

Collocate Merchants Private Limited  |  CIN: U51109WB1995PTC070852  |  Template – Version 1.0

This Loan Agreement (the “Agreement”) is made on the ____ day of ____________, 20__, at Kolkata.

Between
Collocate Merchants Private Limited, a Non-Banking Financial Company registered with the Reserve Bank of India (CIN: U51109WB1995PTC070852), having its registered office at 2A, Ganesh Chandra Avenue, Commerce House, 5th Floor, Room No. 4A, Kolkata, West Bengal - 700013 (the “Lender” or the “Company”), of the one part;

And
Mr./Ms. ________________________ (PAN: ____________), son/daughter/spouse of ________________, aged ____ years, residing at ________________________________________ (the “Borrower”), of the other part. The Lender and the Borrower are together referred to as the “Parties”.

The loan is sourced and serviced through LoanDidi, the Lender’s designated Digital Lending App (DLA) and Lending Service Provider (LSP), operated by 36 Forts Capital Private Limited. The Lender is the sole lender of record; disbursement and recovery are undertaken only by the Lender.

1. Definitions and Interpretation

In this Agreement, “Loan Amount”, “Interest”, “APR”, “EMI”, “KFS”, “Due Date”, “Tenure” and “Default” carry the meanings given in this Agreement and the Schedule/KFS. References to law include amendments and re-enactments.

2. Loan, Interest and Key Fact Statement

• The Lender agrees to grant, and the Borrower agrees to borrow, the Loan Amount set out in the Schedule, for the purpose stated therein.
• Interest accrues at the rate set out in the KFS, on a reducing-balance basis, computed from the date of actual disbursement. The Annual Percentage Rate (APR), inclusive of all applicable charges, is disclosed in the KFS.
• All charges — processing fee, penal charges, foreclosure/part-prepayment charges and other charges — are disclosed in the KFS and the Schedule, in accordance with the Lender’s Interest Rate & Charges Policy. No undisclosed or retrospective charge will be applied.

3. Disbursement

Subject to completion of KYC, verification and execution of this Agreement and the repayment mandate, the Loan Amount (net of upfront charges, if any) will be disbursed to the Borrower’s bank account through the Lender’s banker, IDFC First Bank Ltd, by electronic transfer. The date of disbursal is the Loan Date.

4. Repayment and Mandate

• The Borrower shall repay the Loan by Equated Monthly Instalments (or the frequency stated in the Schedule) on each Due Date.
• Before disbursement, the Borrower shall register an e-NACH or UPI AutoPay mandate in favour of the Lender for the instalment amount (with provision for penal charges).
• The Borrower shall not close the mandate-linked bank account without the Lender’s prior written consent and shall maintain sufficient balance on each Due Date.

5. Prepayment, Foreclosure and Appropriation

The Borrower may prepay or foreclose the Loan in accordance with the KFS and the Lender’s policy; no foreclosure or prepayment charge is levied on floating-rate loans to individual borrowers where the RBI mandates a waiver. Payments received will be appropriated towards costs and charges, penal charges, interest and then principal, in the order set out in the KFS.

6. Penal Charges

Penal charges, where applicable for breach of material terms (such as delay/default in payment or mandate dishonour), are levied as a flat or annualised amount on the overdue principal, are not capitalised, do not constitute penal interest and do not compound. Penal charges are reasonable, proportionate, non-discriminatory within the product category and disclosed in the KFS and the loan documentation.

7. Borrower Representations and Obligations

• The Borrower confirms that all information provided is true and accurate, and that the Borrower has the legal capacity to enter into this Agreement.
• The Borrower shall use the Loan only for the stated purpose, repay on time, and promptly notify the Lender of any event affecting repayment.

8. Events of Default and Recovery

Default includes non-payment when due, breach of any term, dishonour of the mandate, or insolvency of the Borrower. On default, the Lender may, after notice, recall the Loan and pursue lawful recovery. Recovery will be conducted fairly and without harassment, in line with the Lender’s Fair Practices Code; the Borrower will ordinarily be contacted only between 08:00 and 19:00 hours.

9. Grievance Redressal

Any grievance may be addressed to the Grievance Redressal Officer, Mr. Aditya Khandelwal (Email: 11adityakh@gmail.com; Phone: +91 99772 66990). If unresolved within 30 days, the Borrower may approach the RBI through the Complaint Management System portal at cms.rbi.org.in.

10. Confidentiality, Data and Credit Reporting

The Lender will treat the Borrower’s information as confidential and process it in accordance with its Privacy Policy and applicable law, and may share loan and repayment information with credit information companies, which may affect the Borrower’s credit profile.

11. Dispute Resolution, Governing Law and Miscellaneous

This Agreement is governed by the laws of India. Disputes will be referred to arbitration under the Arbitration and Conciliation Act, 1996 by a sole arbitrator, with the seat at Kolkata and proceedings in English; the courts at Kolkata will have exclusive jurisdiction over residual matters. No amendment is valid unless in writing. If any provision is unenforceable, the remainder continues in effect. Notices will be sent to the addresses recorded in the Schedule.

Schedule I – Loan Particulars (refer to Key Fact Statement)