Table of Contents
Loan Agreement
Loan Agreement
This LOAN AGREEMENT executed at this day of 200 Between M/s. A. B.
Constructions, a registered Partnership Firm represented by its partners (1) A B C and (2) X Y Z,
both of Mumbai, Indian Inhabitants, carrying on business at _____
______, hereinafter referred as “THE BORROWER” (which expression shall unless
repugnant to the meaning or context thereof be deemed to include the partner/s for the time being
of the firm, the survivors or survivor of them and the heirs, executors and administrators of the last
surviving partner and their/his/her assigns) of the FIRST PART; P Q R having address at
_______ _______, hereinafter referred to as “THE LENDER” of the
SECOND PART; AND D E F, of Mumbai, Inhabitant, also carrying on business at
_____________________, hereinafter referred as the “THE GUARANTOR” (which
expression shall unless repugnant to the meaning or context thereof be deemed to and include his
heirs, executors and administrators) of the THIRD PART,
WHEREAS at the request of the Guarantor and the Borrower, the Lender has agreed to lend and
advance to the Borrower a sum of
Rs. 25,00,000/- (Rupees Twenty Five lacs only) as business loan carrying interest @ 15% per annum
and on the terms and conditions appearing hereinafter.
NOW THESE PRESENTS WITNESSETH AND IT IS AGREED BETWEEN THE PARTIES AS UNDER:—
- The Lender, at the request of the Guarantor and on his agreeing to guarantee repayment,
has on the execution hereof lent and advanced to the Borrower the sum of Rs.25,00,000/-
(Rupees Twenty five lacs only). The Borrower hereby confirms and acknowledges the
receipt of the aforesaid amount of
Rs. 25,00,000/- (Rupees twenty five lacs only) by cheque
No. dated_______ drawn on ____________. - The Borrower shall repay the aforesaid loan of Rs.25 lacs (Rupees Twenty five lacs only)
together with interest thereon @ 15% p.a. with quarterly rest on or before
_____. - For due repayment of the aforesaid Loan amount, the Borrower and the Guarantor have
executed in favour of and delivered to the Lender a Demand Promissory Note for Rs.25 lacs
(Twenty five lacs) promising to pay the said amount with interest thereon at 15% p.a. with
quarterly rest. - The Borrower has also delivered to the Lender their cheque post dated _ for
the said amount of Rs. 25 lacs and the Borrower and the Guarantor assure the Lender that
the said cheque would be honored on its presentation on the due date in the first instance
only. Towards payment of the quarterly interest on the said amount at the agreed rate of
15% p.a. the Borrower has also delivered to the Lender cheques post dated
____________________________ _________ for
Rs._/- each drawn by it in favour of the Lender. The Borrower and the
Guarantor also assure that each of the said cheques would be honored by them on
presentation to their Bankers on the respective
due dates. - In the event of default by the Borrower in payment of the interest as agreed and as
provided hereinabove, the Lender shall be entitled to call back the principal amount even
before the due date and the Borrower shall forthwith pay the same. - The Guarantor unconditionally and irrevocably hereby guarantees the repayment of the
aforesaid loan by the Borrower on the due date together with interest thereon as foretasted
and the performance of the terms and conditions herein by the Borrower. In no
circumstances, the guarantee shall stand discharged unless the repayment of the loan
together with agreed rate of interest is made in full.
In witness whereof the parties hereto have hereunto set and subscribed their respective hands
to this writing the day and year hereinabove written.
SIGNED AND DELIVERED BY THE )
WITHINNAMED “THE BORROWER” )
M/S. A.B. CONSTRUCTIONS, by its )
Partners (1) A B C and (2) X Y Z )
in the presence of… )
SIGNED AND DELIVERED BY THE )
WITHINNAMED “THE LENDER” )
P Q R )
in the presence of ……… )
SIGNED AND DELIVERED BY THE )
WITHINNAMED “THE GUARANTOR” )
D E F )
in the presence of ……… )
