Loan Agreement with Security (India)
This is a legal template for a secured loan agreement involving a lender, a borrower, and a third-party pledger who provides security. It outlines the terms for an inter-corporate deposit, including interest rates, repayment schedules, and the pledge of equity shares as collateral.
Loan Agreement with Security
THIS AGREEMENT is made at Mumbai on this ____ day of _______, 200__
BETWEEN
___________LTD, a Company incorporated under the Companies Act, 1956 having its Registered Office at ___________________________ (hereinafter referred to as "The Lender") which term or expression shall unless excluded by or repugnant to the subject or context hereof shall mean and include its heirs, successors and assigns of the One Part
AND
i. M/S 123 LIMITED, a Company incorporated under the Companies Act, 1956 having its Registered Office at ____________________ (hereinafter referred to as "The Borrower") which terms or expression shall unless excluded by or repugnant to the subject or context hereof shall mean and include its heirs, successors and assigns of the SECOND PART and
ii. M/S DEF LIMITED, a Company incorporated under the Companies Act, 1956 having its Registered Office at __________________ (hereinafter referred to as "The Pledger") which terms or expression shall unless excluded by or repugnant to the subject or context hereof shall mean and include its heirs, successors and assigns of the THIRD PART.
WHEREAS
A. The Borrower is one of the entities in the group of Companies, 123 LIMITED, a Company incorporated under the provisions of the Companies Act, 1956 having its Registered Office at ___________________________ hereinafter referred to as "The Borrower" has a paid up capital of Rs. ______ lacs as on _________ (date).
B. The Borrowers has approached "The Lender" for grant of inter corporate deposit of Rs. _______/- (Rupees __________ only) for a period of _____ days beginning from the date of disbursal of loan i.e._________.
C. The Lender has favorably considered the request of the Borrower and has agreed to lend and advance a secured interest carrying inter-corporate deposit of Rs. _________ (Rupees _________ only) to the Borrower on the terms and conditions and covenants as follows.
D. The Pledger has agreed to secure the timely repayment of the loan along with interest by creating in favour of the Lender Pledge with the securities fully stated in the Annexure Annexed hereto and treated as an integral part of this Agreement.
NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:
1. At the request of the Borrower the Lender lends an advance to the Borrower an inter corporate deposit of Rs. ____________ (Rupees ___________only) for a period of _______ days beginning from the date of disbursal i.e.________
2. The said inter corporate deposit shall carry an interest @ _____% per annum payable with ________ rests. In case of delay or default in payment, whether of the principal or of the interest or any part thereof the Lender shall be entitled and the borrower shall be liable to pay a penal interest @ _% per annum over and above the interest mentioned hereinabove.
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