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Loan Agreements

Need a Secure Loan Agreement in Kurnool?
At Landmarq, we draft customized loan contracts that protect lenders & borrowers under Indian Contract Act & RBI Guidelines, featuring:

✅ Interest Rate Clarity (Fixed/Variable)
✅ Repayment Schedule (EMIs, Balloon Payments)
✅ Default & Penalty Terms
✅ Collateral Security Clauses

To get started, simply provide the following details:

1. Lender’s Details

  • Full Name (or Company Name, if applicable)
  • Address (permanent or business address)
  • Phone Number
  • Email ID
  • Bank Account Details (for loan disbursement, if applicable)
  • ID Proof (for individual lenders: Aadhaar, Passport, etc.)
  • Company Registration Details (if the lender is a business)

2. Borrower’s Details

  • Full Name
  • Address (permanent or business address)
  • Phone Number
  • Email ID
  • ID Proof (Aadhaar, Passport, etc.)
  • Bank Account Details (for loan repayment)
  • PAN Card (for tax purposes)
  • Any existing collateral (if the loan is secured)

3. Loan Amount and Terms

  • Loan Amount: The total amount being lent.
  • Interest Rate: Fixed or variable interest rate applicable to the loan.
  • Repayment Schedule: Frequency of repayments (monthly, quarterly, etc.), and due dates.
  • Loan Tenure: Duration of the loan (e.g., 1 year, 5 years, etc.).
  • Loan Type: Secured or unsecured loan. If secured, details of the collateral (e.g., property, car, etc.) should be specified.
  • Repayment Method: How the repayments will be made (bank transfer, cheque, etc.).
  • Late Payment Penalties: Charges or penalties in case of late payment.

4. Collateral Details (if applicable)

  • Description of the asset used as collateral (e.g., property, vehicle).
  • Ownership proof (title deed, registration documents).
  • Valuation of the collateral (e.g., market value of the property).

5. Default Conditions and Remedies

  • Default Clause: Conditions under which the borrower will be considered in default (e.g., missed payments, bankruptcy).
  • Legal Recourse: Actions the lender can take in case of default, including possible seizure of collateral (in case of a secured loan).
  • Interest on Default: Whether interest will accrue in case of missed payments.

6. Miscellaneous Terms

  • Governing Law: Jurisdiction under which the loan agreement will be governed (e.g., Indian law).
  • Dispute Resolution: Mechanism for resolving disputes (e.g., arbitration, court proceedings).
  • Prepayment Clause: Whether the borrower can repay the loan early without penalty.
  • Co-Signer/Guarantor: If applicable, the details of any co-signer or guarantor.

7. Signatures & Witnesses

  • Lender’s Signature: To indicate the agreement from the lender.
  • Borrower’s Signature: To indicate acceptance of the loan terms by the borrower.
  • Witness Signatures: Depending on the jurisdiction, witnesses may be required for additional validity.
  • Date and Place of Signing: The date and location where the agreement is signed.

8. Additional Documents (if required)

  • Proof of Income/Employment: To assess the borrower’s ability to repay the loan.
  • Bank Statements: For verification of the borrower’s financial status.
  • Property Documents: If the loan is secured by property, documents such as title deeds or property tax receipts will be required.

For inquiries or submission, contact us at:
Landmarq – Conveyancing and Legal, a trusted legal and documentation service provider in Kurnool, is here to assist you with all your agreement needs.
📧 Email: [email protected] | 📞 Phone/WhatsApp: +91 70452 82751

1. What is a Loan Agreement?

A Loan Agreement is a legally binding document that outlines the terms and conditions under which money is borrowed and repaid between a lender and a borrower.

2. Why is a Loan Agreement important?

It ensures clarity between both parties, minimizes misunderstandings, and serves as legal evidence in case of disputes.

3. What are the key components of a Loan Agreement?

  • Names and details of the lender and borrower
  • Loan amount
  • Interest rate (if any)
  • Repayment schedule
  • Collateral/security (if applicable)
  • Default terms and remedies
  • Signatures of both parties

4. Is it mandatory to register a Loan Agreement?

Not always, but it is advisable, especially when the loan involves a large sum or immovable property as collateral.

5. What is the difference between a secured and unsecured loan?

A secured loan is backed by collateral (e.g., property), while an unsecured loan is based on trust without collateral.

6. Can interest-free loans be given through a Loan Agreement?

Yes, as long as it is clearly stated in the agreement.

7. Who can draft a Loan Agreement?

Either party can draft it, but it should be reviewed by a legal professional to ensure its validity.

8. What happens if the borrower defaults?

The lender can take legal action to recover the amount as per the terms in the agreement. In case of a secured loan, the collateral may be claimed.

9. Can family members or friends enter into a Loan Agreement?

Yes, and it is highly recommended to have written documentation even among close acquaintances to avoid disputes.

10. Is notarization required for Loan Agreements?

Notarization is not mandatory but provides an extra layer of authenticity and can strengthen its legal standing.