Adam Frankel
General Counsel · Technology & AI
15+ years as General Counsel to technology, cloud & AI companies
This is a preview. The full template is free on GitLaw.
About this template
What is this template?
This is a tripartite agreement between a lender, a borrower, and a pledger for a secured inter-corporate loan. It contains specific provisions for maintaining a percentage margin on the value of pledged shares and mandates the execution of a Demand Promissory Note. It is not an unsecured revolving credit facility.
When should you use it?
Use this document when a company provides a loan to another company and requires listed equity shares from a third-party affiliate as security. Use a standard Loan Agreement if no third-party pledge is involved or a Mortgage Deed if the security is real property.
What's inside
| Clause | Name | What it does |
|---|---|---|
| 1 | Loan and Period | The Lender advances a specific sum in Rupees for a stated period of days starting from the disbursal date. |
| 2 | Interest and Penal Interest | The Borrower must pay a specified percentage of annual interest and additional penal interest in the event of a payment default. |
| 3 | Security and Pledge | The Pledger secures the loan by pledging fully paid-up equity shares of a listed company as detailed in the Annexure. |
| 4 | Margin Maintenance | The Borrower must make good a specified percentage margin upon notice or the Lender may demand immediate full repayment. |
| 7 | Sale of Securities | The Lender may sell or dispose of pledged equity shares in the open market to satisfy outstanding debts if the Borrower defaults. |
| 9 | Demand Promissory Note | The Borrower is required to execute a Demand Promissory Note in favour of the Lender as part of the transaction. |
Who it's for
- an Indian company providing an inter-corporate deposit to another entity within the same group
- a corporate borrower securing a short-term loan through a third-party pledger
- a lender requiring listed equity shares as collateral for corporate financing
How long it runs and how it's signed
How long
Runs for a fixed period
Stated duration
[term length] days
Signed by
THE BORROWER, THE PLEDGER, THE LENDER
Witness
Not required
Notarisation
Not required
Also needed
execute a Demand Promissory Note; deliver fresh transfer deeds
Law it's drafted under
Governed by
Companies Act, 1956
Jurisdiction
India
Document info
GitLaw document. Document created on Fri Jun 26th, 2026. Last updated on Wed Jul 15th, 2026.
This document is public
Licensed under CC BY 4.0 (Attribution).
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