Loan Agreement (India) by OLL
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Loan Agreement
LOAN AGREEMENT BETWEEN
___________________________
AND ___________________________
THIS AGREEMENT made and entered into at _______ this ____ day of_______, ______
BETWEEN
__________________
hereinafter called "the Lender" AND ________________________ hereinafter called "the Borrower" and reference to the parties hereto shall mean and include their respective heirs, executors, administrators and assigns;
WHEREAS the Borrower is in need of funds and hence has approached the Lender to grant her an interest-free loan of Rs.________/- (Rupees ____________________ only) for a period of ____ years;
AND WHEREAS the Lender has agreed to grant a loan to the Borrower, free of interest, as the Lender and the Borrower have known each other since several years;
AND WHEREAS the parties hereto are desirous of recording the terms and conditions of this loan in writing;
NOW THIS AGREEMENT WITNESSETH and it is hereby agreed by and between the parties hereto as under:-
1. The Borrower hereto, being in need of money, has requested the Lender to give her an interest-free loan of Rs.___________/- (Rupees _________________________ only) to enable her to purchase a residential flat, to which the Lender has agreed.
2. The said loan is required by the Borrower for a period of ____ years, commencing from __/__/1999 and terminating on __/__/_____.
3. The Borrower hereby agrees and undertakes to return the loan of Rs.___________/- (Rupees ______________________ only), in installments, within the aforesaid period of ____ years and gives her personal guarantee for the same.
4. The terms and conditions of this Agreement are arrived at by the mutual consent of the parties hereto.
IN WITNESS WHEREOF the parties hereto have hereunto set and subscribed their respective hands the day and year first hereinabove written.
SIGNED AND DELIVERED by the within-
Named Lender in the presence of
SIGNED AND DELIVERED by the within-
Named Borrower in the presence of
This is a straightforward template for an interest-free loan agreement between two individuals who have a pre-existing relationship. It outlines the loan amount, the purpose of the loan (such as purchasing a flat), and the agreed-upon repayment period and method.
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About this template
What is this template?
This is a simple interest-free debt instrument between two individuals. It is not a commercial facility agreement and lacks provisions for interest calculation, default events, or secured collateral.
When should you use it?
Use this when documenting a private, interest-free loan between people who know each other. Use a Promissory Note if a simpler, one-way document for repayment is preferred.
What's inside
| Clause | Name | What it does |
|---|---|---|
| 1 | Loan Amount and Purpose | The Lender provides an interest-free loan of a specified amount in Rs. for the Borrower to purchase a residential flat. |
| 2 | Loan Term | The loan runs for a fixed period of years starting from a date in 1999 until a specified termination date. |
| 3 | Repayment and Guarantee | The Borrower must repay the total Rupees amount in installments within the agreed years and provides a personal guarantee. |
| 4 | Mutual Consent | Confirms that all terms and conditions within the document were reached through the mutual consent of both parties. |
Who it's for
- an individual in India lending money to an acquaintance without charging interest
- a borrower requiring a personal loan specifically to fund the purchase of a residential flat
How long it runs and how it's signed
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