Loan Agreement Template

LOAN AGREEMENT This Loan Agreement ("Agreement") is executed on [DATE] at [CITY] by and between: [LENDER_NAME], a [citizen of India/registered entity], residing/situated at [LENDER_ADDRESS] (hereinafter called the "Lender"), AND [BORROWER_NAME], a [citizen of India/registered entity], residing/situated at [BORROWER_ADDRESS] (hereinafter called the "Borrower"). WHEREAS the Lender has agreed to lend a sum of money to the Borrower, and the Borrower has agreed to repay the same along with interest as per the terms and conditions hereinafter mentioned. 1. LOAN AMOUNT AND PURPOSE. The Lender hereby agrees to lend to the Borrower a sum of ₹[PRINCIPAL_AMOUNT] (Rupees [AMOUNT_IN_WORDS]) only (hereinafter referred to as the "Loan Amount"). The Borrower shall utilize this loan amount for [PURPOSE_OF_LOAN] only. 2. INTEREST. The Borrower shall pay interest on the outstanding Loan Amount at the rate of [INTEREST_RATE]% per annum, calculated on a [daily/monthly/quarterly] basis. 3. DISBURSEMENT. The Lender shall disburse the Loan Amount to the Borrower on [DISBURSEMENT_DATE] as follows: [DISBURSEMENT_SCHEDULE]. 4. REPAYMENT TERMS. The Borrower shall repay the Loan Amount in [NUMBER_OF_INSTALLMENTS] equal monthly installments of ₹[INSTALLMENT_AMOUNT] each, commencing from [FIRST_REPAYMENT_DATE]. The final installment shall be paid by [FINAL_REPAYMENT_DATE]. 5. SECURITY. As security for the repayment of the Loan Amount, the Borrower shall provide: [DESCRIPTION_OF_COLLATERAL/MORTGAGE/PLEDGE] 6. DEFAULT. If the Borrower fails to pay any installment within [GRACE_PERIOD] days of the due date, interest at [PENAL_RATE]% per annum shall be charged on the overdue amount. 7. PREPAYMENT. The Borrower may repay the entire outstanding Loan Amount at any time without penalty. 8. COVENANT. The Borrower covenants to maintain the security in good condition and not dispose of it without the Lender's written consent. [LENDER_NAME] Signature: ______________________ [BORROWER_NAME] Signature: ______________________ WITNESSES: 1. Name: _________________ Signature: _________________ 2. Name: _________________ Signature: _________________