Loan Agreement between Borrower and Lender

This Agreement is made on this … of…………….., 20…...


Mr/Ms/Mrs. …………………………………......., S/o or D/o …………………..........….., 
R/o ……………………………………………………………….....................................…., 
(hereinafter referred to as the “Lender” which expression shall, unless repugnant to or inconsistent with the context, mean and include their successors and permitted assignees of the FIRST  PART). 


Mr/Ms/Mrs. …………………………………………………………………., S/o or D/o ……………………………………………………….., 
R/o …………………………………………………………………..............................................................…………………., 
(hereinafter referred to as the “Borrower” which expression shall, unless repugnant to or inconsistent with the context, mean and include their successors and permitted assignees of the SECOND PART). 

[Borrower and Lender shall together be referred to as the “Parties” and severally as the “Party”]


Whereas, i-lend is an online social lending platform that brings together borrowers and lenders, and the Company provides its services as per the terms provided under the borrower registration agreement and lender registration agreement as the case may be, in relation to the lending/ borrowing transactions made through i-lend website.

Whereas, a person who creates an account with i-lend at can find a suitable lender/borrower. On freezing of the loan transaction for the borrower or closure of the bid for the lender, as the case may be the terms between the borrower & lender are materialized by entering into this binding agreement.

1.Definitions and Interpretations

1.1. In this Agreement (including any recitals, annexure, schedules or exhibits attached thereto) except where the context otherwise requires, the following words and expressions shall have the following meaning:-

a) “Act” means the (Indian) Companies Act, 1956.

b) “i-lend” refers to DIPAMKARA WEB VENTURES PRIVATE LIMITED”, a private limited company incorporated under the provisions of the Companies Act, 1956 (1 of 1956), having its registered office at  6-3-1109/5 & 6, 4th Floor, G.S Mall, Somajiguda, Hyderabad, Telangana 500082.

c) “i- lend borrower” is an individual registered on i-lend portal to avail loan.

d) “i-lend lender “is an individual registered on i-lend portal to offer loan.

e) “i-lend rating” means rating given by i-lend based on its proprietary algorithm.

f) “Credit score” means the score or report as obtained from a recognized third party.

g) “Indian Resident” is a person resident in India as defined under clause 2(v) Foreign Exchange Management Act, 1999. The same is reproduced as under: 

Person resident in India for more than 182 days during the course of preceding financial year but does not include:
A) A person who has gone out of India or who stays outside India, in either case:
(A.1) for or on taking up employment outside India; or
(A.2) for carrying on outside India a business or vocation outside India; or
(A.3) for any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period.

B) A person who has come to or stay in India, in either case, otherwise than:
(B.1) for or on taking up employment in India, or
(B.2) for carrying on in India a business or vocation in India, or
(B.3) for any other purpose, in such circumstances as would indicate his intention to stay in India for an uncertain period;

h) “Person” means an individual.

i) “Repayment” means the repayment of the principal amount and of loan interest thereon, commitment and/or any other charges, fees or other dues payable in terms of this agreement to the lender.

j) “Pre-payment” means premature repayment of the loan in partial or full.

k) “Instalment” means the amount of monthly payment over the period of loan.

l) “Post Dated Cheques” or “PDCs” means cheques for the amount of the instalment drawn by the borrower in favour of the lender bearing the dates to match the due date of each instalment.

m) “EMI” means Equated Monthly Instalments

n) “Working day” shall mean the day on which the Banks are open for business in India.

1.2. References to Articles, Clauses, Recitals, Appendices and Schedules are to articles, clauses, recitals, appendices and schedules to this Agreement.

1.3. Any reference to a statutory provision shall include such provision as is from time to time modified or re-enacted or consolidated so far as such modification or re-enactment or consolidation applies or is capable of applying to any transactions entered into hereunder.

1.4. Words denoting the singular only shall include the plural and vice versa.

1.5. Words denoting the masculine gender only shall include the feminine gender and vice versa.

1.6. The Recitals to this agreement shall be and form an integral part of this agreement.

1.7. Headings in this agreement are for convenience of reference only and shall not be used to construe or interpret this agreement.


2. Commencement

This agreement shall come into effect from the date of this agreement.


3. Purpose

The borrower hereby confirms that the amount borrowed shall be used for the purpose mentioned here under:


4. Agreement and terms of the loan
a) Amount of Loan

The lender has agreed to grant the loan to the borrower a sum of Rs………………………………………………/- (mention in words)

b) Disbursement of loan

i-lend will ensure that the cheque collected from the lender in the name of the borrower is deposited into the borrower’s designated account within 3-5 working days after execution of this document by both the lenders and borrowers. In case there is a delay in providing the money from lender due to unforeseen circumstances, i-lend will intimate the borrower immediately and lender is provided additional 5 working days to deposit his cheque with i-lend. In the event that the lender has not deposited required cheque within the due date after closure of bid as stated above, i-lend will take necessary steps to reach to other interested lenders to offer the remaining amount to the borrower. The borrower can however choose to either take the offered amount or wait till the total loan amount is made available. This however, may take additional 3-10 working days to complete the loan transaction after execution of this agreement by both the lender and borrower.

c) When the loan, interest, etc becomes due

Interest will be calculated as per the details mentioned on the website on the loan amount disbursed to the borrower (for more clarity, when the lender is meeting the commitment of the borrower in partial, then interest would be calculated for his amount which is lent as mentioned on the website).

EMI cheque’s favouring lenders will be deposited to the lender designated account by 7th of every calendar month or if 7th is a not a working day, then the same will be deposited on the next working day.

d) Mode of payment of Instalment

D.1 All disbursements to be made by the borrower to the lender, under or in terms of this agreement shall be made by way of post-dated cheque duly crossed and marked “A/C Payee only”.

D.2.1 The borrower shall pay the PDCs for the entire loan tenure at the time of the disbursal of the loan amount. In the event that he cannot give the total number of required cheque leaves, then he must necessarily give one PDC for the amount equivalent to principal outstanding at the end of the period for which the EMI PDCs have been given. 

D.2.2 Borrower must give the balance PDCs for remaining EMIs, at least one month prior to likely exhaustion of the PDCs given under above sub para. At this point, the PDC given for the principal outstanding under above sub para will be handed over to the borrower. In the event that he cannot provide the balance PDCs, then he must necessarily give one PDC for the amount equivalent to principal outstanding at the end of the period for which the EMI PDCs have been given. This process gets repeated until entire amount is repaid.

D.3 No notice, reminders, or intimation shall be given to the borrower prior to the presentation of any of the PDCs issued by him.

D.4 It is agreed and understood by the borrower that failure to deposit the PDC by i-lend due to any reasons whatsoever will not affect the liability of the borrower to repay the loan.

e) Non - Encashment of PDCs

If any of the PDCs delivered by the borrower
i) is /are lost, destroyed or misplaced while in custody of i-lend, then in such an event, the borrower on receipt of such an intimation of such loss, destruction or misplacement (as the case may be) from the i-lend, deliver to i-lend such number of cheques as are adequate to replace those that have been lost, destroyed, misplaced, or make such suitable alternative arrangements for repayment of loan as is acceptable to i-lend within a period of 15 working days from the date of receipt of such information.

ii) is/ become(s) non-encashable due to the death of the borrower then in such an event, the lender claims under this agreement can be settled from the estate of the deceased borrower if the estate is solvent, then the legal heir/representative of the deceased will be responsible for paying the lenders claim under this agreement.

iii) is/ become(s) non-encashable due to the insolvency of the borrower then in such an event, i-lend can institute insolvency proceedings against the borrower. On the passing of an order of insolvency, all the properties of the insolvent borrower, wherever situated, shall be vested in the official assignee, for its realization and distribution.

f) Interest

The rate of interest applicable to the said loan as at the date of execution of this agreement is…………..………, compounded with the monthly rests on the outstanding balance, namely the balance of loan and unpaid interest and costs, charges and expenses outstanding at the end of the month. Any dispute being raised about the amount due or interest computation will not enable the borrower to withhold payment of any instalment. For purpose of computation of interest 30 days shall be considered per calendar month.

g) Period of disbursement of loan

The loan provided under this agreement shall be for ………………….months/years. The loan period cannot be extended even with mutual consent of both parties in writing.

h) Prepayment of loan

The borrower can at time prepay the loan and there is no penalty for the same. Prepayment can be done in partial or full. However, the terms for partial fulfilment can be seen on the website and those terms are to be abided. Pre-payment cheques shall be deposited only along with the EMI cheque whether that is due in current month or ensuing month and interest shall be calculated per calendar month.

i) Appropriation of Payments

In case PDCs given in favour of the lender are not realized or in case of delayed payments by the borrower, i-lend shall have a right to appropriate the costs/ due payments out of the monies received from the borrower in the following order: 
(i) Costs, charges, expenses and other monies incurred by i-lend in getting the due payments from the borrower.
(ii) Late fee and penal charges, if any due to the lender
(iii) Interest if any, due in terms of the loan agreement.
(iv) Principal due and payable.

5. Representations and warranties of the parties

Each party to the agreement makes the following representations and warranties with respect to itself, and confirms that they are, true, correct and valid: 

a) He has full power and authority to enter into, deliver and perform the terms and provisions of this agreement and, in particular, to exercise its rights, perform the obligations expressed to be assumed by and make the representations and warranties made by him hereunder;

b) His obligation under this agreement are legal and valid binding on him and enforceable against him in accordance with the terms hereof.

c) The parties to the agreement warrant and represent to have the legal competence and capacity to execute and perform this agreement.

6. Covenants / undertakings of the parties
6.1 Borrower

a) To utilize the entire loan for the required purpose.

b) To promptly notify any event or circumstances, which might operate as a cause of delay in the completion of this agreement.

c) To provide accurate and true information.

d) To repay the required funded amount without any failure.

e) To maintain sufficient balance in the account of the drawee bank for payment of PDCs issued by him on the day when any instalment becomes due and thereafter to honour all such post-dated cheques.

f) Due performance of all the terms and conditions provided under this loan agreement.

g) Borrower agree to indemnify and hold i-lend harmless from and against any and all claims, action, liability, cost, loss, damage, endured by i-lend by your access in violation to the listed terms of service and also to the applicable laws, rules and regulations or agreements prevailing from time to time.

h) The collection charges, if any, incurred by lender, to be borne by the borrower

i) Cost of initiating legal proceedings.

6.2 Lender

a) To provide accurate and true information. 

b) To fund the accepted amount to the borrower.

c) To maintain sufficient balance in the account of the drawee bank for payment of share of the borrower loan amount.

d) Due performance of all the terms and conditions provided under this loan agreement.

e) Lenders agree to indemnify and hold i-lend harmless from and against any and all claims, action, liability, cost, loss, damage, endured by i-lend by your access in violation to the listed terms of service and also to the applicable laws, rules and regulations or agreements prevailing from time to time.

7. Notices

All correspondence shall be addressed to the address as mentioned in the description of parties appearing in the preamble to this agreement.

8. Events of defaults

The following events shall constitute 'Events of default':

8.1 The borrower failing to repay the loan or any fee, charges, or costs in the manner herein contained or any other amount due hereunder remains unpaid after the date on which it is due; or 

8.2 In case of death of the borrower or the borrower becomes insolvent or bankrupt; or

8.3 Any of the PDCs delivered or to be delivered by the borrower to the lender in terms and conditions hereof is not realized for any reason whatsoever on presentation; or 

8.4 Any instruction being given by the borrower for stop payment of any PDCs given as per Clause 4D for any reason whatsoever; or 

8.5 On the borrower committing breach of any of the terms, covenants and conditions herein contained or any information given or representations made by the borrower to the lender under this agreement or any other document submitted by the borrower being found to be inaccurate or misleading; or

8.6 There exists any other circumstances at i-lend discretion, which may jeopardize the lender's interest.

9. Consequence of default

i-lend on behalf of lender will take such necessary steps as permitted by law against the borrower to  realize the amounts due along with the interest at the decided rate and other fees / costs as agreed in this agreement including appointment of collection agents, appointment of attorneys/ consultants, as it thinks fit.

10. Severability

If any provision of this agreement is found to be invalid or unenforceable, then the invalid or unenforceable provision will be deemed superseded by a valid enforceable provision that most closely matches the intent of the original provision and the remainder of the agreement shall continue in effect.

11. Governing law, dispute resolution and jurisdiction

a) Any and all disputes or differences between the parties to the agreement, arising out of or in connection with this agreement or its performance shall, so far as it is possible, be settled by negotiations between the parties amicably through consultation.

b) Any dispute, which could not be settled by the parties through amicable settlement (as provided for under above clause) shall be finally settled by the court of law having jurisdiction to grant the same. Jurisdiction – Hyderabad, AP

c) This agreement and the arrangements contemplated hereby shall in all respects be governed by and construed in accordance with the laws of India without giving effect to the principles of conflict of laws thereunder. 

12. Force majeure

No party shall be liable to the other if, and to the extent, that the performance or delay in performance of any of their obligations under this agreement is prevented, restricted, delayed or interfered with, due to circumstances beyond the reasonable control of such party, including but not limited to, Government legislation's, fires, floods, explosions, epidemics, accidents, acts of God, wars, riots, strikes, lockouts, or other concerted acts of workmen, acts of Government and/or shortages of materials. The party claiming an event of force majeure shall promptly notify the other parties in writing, and provide full particulars of the cause or event and the date of first occurrence thereof, as soon as possible after the event and also keep the other parties informed of any further developments. The party so affected shall use its best efforts to remove the cause of non-performance, and the parties shall resume performance hereunder with the utmost dispatch when such cause is removed.

13. Binding effect

All warranties, undertakings and agreements given herein by the parties shall be binding upon the parties and upon its legal representatives and estates. This agreement (together with any amendments or modifications thereof) supersedes all prior discussions and agreements (whether oral or written) between the parties with respect to the transaction.

14. Entire agreement

This agreement, along with the i-lend terms and conditions, and i-lend agreement entered individually with borrower & lender represents the entire agreement. With respect to matters governing i-lend and parties, the respective agreements be refereed to.

15. Miscellaneous

15.1 Language
English shall be used in all correspondence and communications between the Parties.

15.2 Cumulative Rights
All remedies of lender under this agreement whether provided herein or conferred by statute, civil law, common law, custom, trade, or usage are cumulative and not alternative and may be enforced successively or concurrently.

15.3 Benefit of the Loan Agreement
The loan agreement shall be binding upon and to ensure to the benefit of each party thereto and its successors or heirs, administrators, as the case may be.

15.4 Any delay in exercising or omission to exercise any right, power or remedy accruing to the lender under this agreement or any other agreement or document shall not impair any such right, power or remedy and shall not be construed to be a waiver thereof or any acquiescence in any default; nor shall the action or inaction of the lender in respect of any default or any acquiescence in any default, affect or impair any right, power or remedy of lender in respect of any other default.

16. Acceptance

The parties hereby declares as follows: 

16.1 They have read the entire agreement and shall be bound by all the conditions.

16.2 This agreement and other documents have been explained to them in the language understood by them and they have understood the entire meaning of all the clauses.

16.3 They agree that this agreement shall be concluded and become legally binding on the date when it is signed by the parties.

IN WHEREOF the Parties have executed this Agreement as of the day and year first above written.
on behalf of lender

Mr. ...............


on behalf of Borrower

Mr. ...............

Witnessed by: