1 . COLLATERAL
A. This Loan is unsecured and no collateral is required.
2. DEFAULT AND RECOVERY
A. DEFINATION OF DEFAULT :
A default occures if any of the following events occur :
i. The Borrower fails to make any installment payment by the due date.
ii. The Borrower fails to comply with any other terms and conditions of this Agreement.
iii. The Borrower’s financial condition deteriorates or significant changes in circumstances
occuer.
B. CONSEQUECES OF DEFAULT
i. Immediatet Repayments : The entire outstanding principal amount, accued interest
and all applicable fees or charges become immediately due and payable.
ii. Late Fees : The Borrower shall be liable to pay any late fees and penalties as specified
in this Agreement for any missed or delayed payments.
C. LEGAL ACTIONS AND REMEDIES :
i. Issuance of Legal Notices : The Lender will issue a formal legal notice to the
Borrower detailing the default, the outstanding amounts, and demanding immediate
payment. This notice will also specify any penalties or charges incurred.
ii. Legal Proceedings : If the Borrower does not respond to the notice, the Lender
may initiate legal proceedings to recover the ourstanding dues, including filling a sut
for recovery of the principal amount, interest, and any applicable penalties.
iii. Civil Suit : The Lender has the right to file a civil suit for recovery of the dues, which
may recult in court orders for attachment of assets or garnishment of wages it the
Borrower fails to repay.
D. IMPACT ON CREDIT SCORE :
i. The Borrowr’s default will be reported to credit bureaus, potentially negatively affecting
the Borrower’s credit score. This can impact the Borrower’s ability to obtain furture
credit or financial services.
E. DEBT RECOVERY PROCESS :
i. Collection Notices : The Lender will issue formal collection notices to the Borrower
detailing the overdue amounts and any applicable penalties.
P.T.O.
ii. Enforcement Actioons : If the Borrower remains in default, the Lender may take
enforcement actions, icluding :
iii. Engaging debt collection agencies for recovery.
iv. Initiating recovery proceedings as per applicable laws.
v. Credit Report Updates : The Lender will update the Borrowr’s credit report with the
status of the loan icluding defaults and recovery actions, which may adversely affect
the Borrowr’s creditworthiness.
F. LEGAL FEES AND COSTS :
i. The Borrower shall be responsible for all legal fees, court costs, and other expenses
incurred by the Lender in enforcing this Agreement or collecting the outstanding
dues.
G. COMPLIANCE WITH LAWS :
i. All actions taken by the Lender under this Agreement will be in accordance with
applicable laws, regulations and legal procedures. The recovery process will be
conducted while respecting the Borrower’s rights and follwing the legal framework.
3. DOCUMENTATION :
The Borrower must provide the follwing documents :
a. Proof of Identity (e.g., Aadhar Card, PAN Card),
b. Proof of Address (e.g., Utility Bill, Rent Agreement).
c. Proof of Income (e.g., Salary Slips, Bank Statements).
4. RIGHTS AND RESPONSIBILITIES
a. Borrower’s Rights : Te Borrower has the right to receive clear information regarding the
Loan terms and conditions and to access information about the loan balance and repayments status.
b. Borrower’s Responsiblities : The Borrower must.
i. Repay the Loan as per the agreed schedule.
ii. Notify the Lender of any changes n contact details or financial status.
5. PRIVACY POLICY
a. All personal and financial information provided by the Borrower will be kept confidential and
used solely for loan processing and recovery purposes.
6. DISPUTE RESOLUTION
a. Any disputes arising out of this Agreement will be resolved through [Specify echanism, e.g.,
arbitration, mediation, or legal proceedings].