LOAN AGREEMENT
This Loan Agreement is made and executed on {{agreement_date}} at {{city}}.
BETWEEN
{{lender_name}}, son/daughter of {{lender_father_name}}, residing at {{lender_address}}, hereinafter referred to as the “Lender” (which expression shall include his/her heirs, successors, and assigns)
AND
{{borrower_name}}, son/daughter of {{borrower_father_name}}, residing at {{borrower_address}}, hereinafter referred to as the “Borrower” (which expression shall include his/her heirs, successors, and assigns)
1. Loan Amount
The Lender agrees to lend a sum of ₹{{loan_amount}} (Rupees {{amount_in_words}} only) to the Borrower.
2. Date of Disbursement
The loan amount has been paid on {{disbursement_date}} by {{payment_mode}}.
3. Interest
The loan shall carry an interest rate of {{interest_rate}}% per annum.
(If interest-free, mention “Nil”.)
4. Repayment
The Borrower agrees to repay the loan amount in the following manner:
{{repayment_terms}}
5. Tenure
The loan shall be repaid within {{loan_tenure}} months, ending on {{end_date}}.
6. Default
In case of default in repayment, the Lender shall have the right to recover the outstanding amount in accordance with law.
7. Prepayment
The Borrower may prepay the loan amount without any penalty unless otherwise agreed.
8. Governing Law
This agreement shall be governed by the laws of India.
IN WITNESS WHEREOF, both parties have signed this agreement on the date first mentioned above.
LENDER
Signature: __________
Name: {{lender_name}}
BORROWER
Signature: __________
Name: {{borrower_name}}
WITNESS 1
Name: {{witness1_name}}
Address: {{witness1_address}}
Signature: __________
WITNESS 2
Name: {{witness2_name}}
Address: {{witness2_address}}
Signature: __________