P2P Loan | Termsheet

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1. GENERAL PROVISIONS

1.1 The loan agreement terms and conditions shall form an inseparable part of the loan agreement concluded between the lender and the borrower.

1.2 The Lender shall have the right to amend the loan agreement terms and conditions unilaterally if the law regulating consumer credit in India or other associations arising from the loan agreement terms and conditions change and amendment of the loan agreement terms and conditions arises from harmonization thereof with legal standards, whereas the Lender shall notify the borrower in advance of the respective changes.

1.3 The rate of interest expresses the annual costs burden (incl. interest, agreement fee) of the borrower arising from the use of the loan limit and it is expressed as an annual percentage rate of the loan limit. The calculation of the rate is based on the terms and conditions of the loan agreement valid at the time the loan agreement or its amendment is entered into (incl. the interest rate valid at the time).

1.4 The loan agreement remains in effect until the final repayment date of the loan amount agreed upon in the loan agreement and the parties shall duly fulfil the obligations arising from the loan agreement terms and conditions.

1.5 In calculating the rate of interest, the costs of establishing the collateral (incl. notary fee and state fee) as well as the insurance costs of the property encumbered with collateral shall not be taken into account.

2. DISBURSEMENT OF LOAN AMOUNT

2.1 The lender shall disburse the loan amount or a part thereof in accordance with the loan agreement.

2.2 If the borrower has provided the lender with false material information or the circumstances forming the basis for granting the loan limit have changed (incl. the borrower’s intent on usage of loan), the lender shall have the right to refuse disbursement of the loan amount or a part thereof on the basis of the loan agreement.

3. CALCULATION AND PAYMENT OF INTEREST

3.1 The borrower shall pay interest under terms and conditions provided for in the loan agreement in accordance with the amounts specified in the schedule.

3.2 The borrower shall pay the lender the interest on the outstanding loan amount on the basis of the interest rate under the loan agreement.

3.3 The lender shall start calculating the interest as of the date of granting the borrower use of the loan amount or a part thereof. The interest shall be calculated until the repayment of the entire loan amount.

4. REPAYMENT OF LOAN AMOUNT

4.1 The borrower shall repay the loan amount under the terms and conditions provided for in the loan agreement in accordance with the amounts specified in the schedule.

4.2 The borrower shall have the right to repay the loan amount or a part thereof prematurely pursuant to the terms and conditions and procedure stipulated in clauses 4.3–4.7 of the standard loan agreement terms and conditions.

4.3 If the borrower wishes to repay the loan amount or a part thereof to the lender prematurely, the borrower must pay the lender the premature repayment fee in the amount which is equal to the interest payment amount of three months calculated on the basis of the interest rate valid under the loan agreement on the repayment date of the repayable loan amount or a part thereof. If the borrower informs the lender of its wish to repay the loan amount or a part thereof 3 (three) months in advance and repays the loan amount or a part thereof after 3 (months) within 10 (ten) banking days, the borrower shall not be obliged to pay the premature repayment fee. The calculation of the three-month period starts from the date the lender received the respective written application from the borrower.

4.4 The lender shall calculate the early repayment fee on the amount subject to early repayment on the basis of the actual number of days in a calendar month, divided by a 360-day year, for the time remaining between the day of receipt of the request for early repayment by the lender and the final date of the fixation period. The borrower shall pay the early repayment fee along with the amount subject to early repayment within 10 (ten) banking days as of the receipt of the request for early repayment by the lender.

4.5 If the borrower has not repaid the loan amount or a part thereof within the terms specified in clauses 4.3 and 4.4 of the loan agreement terms and conditions, it shall be deemed that the borrower has waived the early repayment request.

4.6 The borrower shall pay the fee for early repayment to the lender on the day of early repayment of the loan amount or a part thereof.

4.7 If the base interest rate changes and the borrower does not agree with the new increased base interest rate, the borrower has the right to repay the loan amount within two months from the day the base interest rate is changed without paying the early repayment fee.

5. SCHEDULE OF LOAN AMOUNT REPAYMENTS AND INTEREST PAYMENTS

5.1 The schedule to be sent to the borrower by the lender is of an informative meaning.

5.2 The lender shall prepare the schedule within 2 (two) banking days as of disbursement of the loan amount or a part thereof to the borrower and/or as of any amendment of the interest rate.

5.3 The lender shall deliver the schedule to the borrower (if there is more than one borrower, to borrower 1) within 7 (seven) banking days to the postal or e-mail address stated in the loan agreement. The borrower shall notify the lender of not having received the schedule 3 within the above term. Upon receipt of the corresponding notice, the lender shall send the schedule to the borrower once again.

5.4 During the validity of the loan agreement the lender shall make the schedule available to the borrower free of charge. The lender shall deliver the schedule to the borrower on request by post or e-mail pursuant to the procedure specified in clause 5.3 of the loan agreement terms and conditions.

5.5 If the payments specified in the schedule do not coincide with the payments calculated by the borrower on the basis of the loan agreement terms and conditions, he or she shall notify the lender thereof immediately upon receipt of the schedule.

6. PAYMENT OF AGREEMENT FEE

6.1 If upon amendment of loan agreement, the borrower is obliged to pay agreement fee and the current account of borowwer does not hold sufficient fund for payment of agreement fee, the lender shall deduct such amount from the loan amount to be disbursed.

6.2 The lender is entiled to receive the agreement fee, even if the borrower does not take the loan amount into his or her use or the lender has not disbursed the loan amount due to some significant false information in the loan application or any other documents submitted.

7. CALCULATION AND PAYMENT OF DEFAULT INTEREST

7.1 If there is default in payments to be made by borrower as mentioned in the agreement, the lender is entitled to receive from borrower, default interest on the amount outstanding from the day of default till the day when the outstanding amount was paid in full.

7.2 The default interest rate will be goverened by the existing rate and legal framework in India.

8. INSURANCE

8.1 The borrower shall insure the object encumbered with the collateral under the terms and conditions specified in the loan agreement.

8.2 The borrower shall notify the insurer of the fact that the object forming an object of the insurance agreement has been encumbered with the collateral.

8.3 The borrower shall conclude an insurance agreement under the following terms and conditions: - the sum insured shall be equal to the full reinstatement value of the building(s); - the insured risks shall include fire, water, vandalism and natural disasters; - the beneficiary shall be the lender; - the terms and conditions of the insurance agreement listed above may be amended only upon the prior written consent of the lender (except the increase of the insurance amount and/or adding of insured risks).

8.4 From the insurance indemnity received by the lender, if parties fail to abide by the terms of the agreement, the left over after full settlement of claims arising from the loan agreement should be paid back to the borrower by the lender.

8.5 The borrower shall submit a copy of each insurance policy to the lender. A copy of the insurance policy can be replaced by a written notice sent to the lender by the insurer in the format agreed on previously with the lender, which indicates the significant terms and conditions of the insurance agreement.

8.6 The borrower shall preserve the effectiveness of the insurance agreement under the foregoing terms and conditions (incl. pay the insurance premiums in due course) until the borrower has fully paid all the liabilities to the lender.

9. OBLIGATIONS OF BORROWER

9.1 The borrower shall use the loan amount for the specific purpose specified in the principal loan agreement terms and conditions if such a purpose has been fixed.

9.2 If the collateral is a mortgage on a legal share of an immovable, the owner of the aforementioned legal share of the immovable shall, in addition to the agreement on establishment of mortgage in favour of the lender, conclude a notarised agreement on the procedure for use of the immovable subject to entry in the land register with the co-owners of the immovable on the terms and conditions specified by the lender.

9.3 If the lender has doubt on any possible violation by the borrower of the obligations relating to financial standing, collateral and or use of loan amount as mentioned in the agreement, the lender can ask for additional documents verifying the performance of obligations by the borrower. The borrower shall submit the the respective documents within 10 days of the receipt of relevant request.

9.4 The borrower shall notify the lender within 5 (five) banking days if:
  • 1. The personal data, place of residence and/or other contact data of the borrower change.
  • 2. An insured event occured with the object encumbered with the collateral. The definition of an insured event is specified in the insurance agreement.
  • 3. Any third parties rights with regard to the object encumbered with the collateral appeared wherin the collateral was seized or a claim for payment was made.
  • 4. There occur any events which jeopardise proper performance of the loan agreement by the borrower.

9.5 During the tenure of loan agreement;
  • (i) All regular income of the borrower, which served as the basis for determining the loan limit (incl. monthly salary) shall accrue to the borrower’s current account (for loan);
  • (ii) If the borrower’s place of work is outside India and his or her regular income accrues to a foreign credit institution, the borrower shall hold in his or her current account(for loan) a minimum amount that is equal to the sum of payments to be made under the loan agreement to the lender within two (2) months.

9.6 The borrower shall agree with the lender in writing in advance on assumption of a loan and/or any other financial obligation from a third party in advance if the total amount of the obligations to be assumed forms 10 (ten) percent or more of the loan limit.

10. CANCELLATION OF LOAN AGREEMENT

10.1 The lender shall be entitled to cancel the loan agreement and demand from the borrower,discharge of the outstanding loan amount; unpaid interest;magreement fee; default interest; penalties and other claims arising from the loan agreement within 20 (twenty) banking days as of the receipt of a corresponding notice from the lender if:

  • 1. The borrower has provided the lender with false material information in the loan application or other documents presented to the lender (incl. notices, certificates).
  • 2. The borrower does not duly perform the payment obligations arising from the loan agreement (incl. 3 (three) consecutive payments of the loan amount and/or interest payment are in full or in part overdue and the borrower fails to settle the debt even 2 (two) weeks after receiving the respective claim from the lender) or does not pay default interest.
  • 3. The market value of the object encumbered with the collateral decreases in such a way that the value of the object encumbered with the collateral is not sufficient enough for satisfying the lender's claims arising from the loan agreement (incl. the object encumbered with the collateral is leased without the prior written consent of the lender or an insurance event which does not allow for payment of insurance indemnity occurs) or a claim for payment is made with regard to the object encumbered with the collateral or the invalidity of the collateral appears and the lender and the borrower fail to come to an agreement on establishment of an additional collateral within 20 (twenty) banking days.
  • 4. There occur any events which jeopardise due performance of the loan agreement by the borrower.
  • 5. The borrower fails to fulfil duly the financial obligations arising from other agreements concluded with the lender and/or a subsidiary/subsidiaries belonging to the consolidation group of the lender.

11. OTHER TERMS AND CONDITIONS

11.1 The loan agreement terms and conditions shall be governed by the laws of India.

11.2 The limitation period of the claims arising from the loan agreement terms and conditions shall be 5 (five) years.

11.3 Any amendments and modifications made to the loan agreement shall enter into force as of signing by the parties, unless the parties have agreed otherwise.

All notices related to the loan agreement shall be forwarded to the other party by post or by e-mail on addresses specified in the loan agreement.