Home Loan Agreement |
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It is the Agreement which a customer need to sign before going for disbursement of the loan which he requested to the bank to fund on the property. Its consists of all terms and conditions that the bank asks the customers to fulfil. Please read the document carefully before signing it as it is a long term contract between the customer and the Bank. Once you sign the document it can’t be altered or modified until and unless you repay the loan in all respects.
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This Agreement is made at ____________ on this ___ day of _________20__ between
________________ Bank Ltd of the one part and Mr. /Mrs ______________ S/O
___________ residing at _________________ here in as referred as “Borrower” of
the other part. |
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Whereas the borrower(s) whose names are mentioned above are requested _______
bank to provide him/them/it a loan facility in relation to a property and the
_____bank agreeable to provide such loan facility. |
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1. Definitions |
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In this agreement the following words shall have the following meaning |
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“Agreement” means The Home Loan Agreement. |
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“Bank” means a banking company incorporated and registered under the
provisions of the companies Act 1956, having its registered office at
______________________.
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Borrower means one or more individual(s), a sole propriety firm, partnership
firm or a limited company whose name(s) and address(s) is are stated in
executing this agreement as borrower(s) and |
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a. |
In case when the borrower is one or more individuals each one being deemed to
have made this agreement individually and in case of more than one, all of them
having agreed to liabilities hereunder jointly and severally and the term
“Borrower” shall include his/their respective heirs, executors, administrators
and legal representatives and permitted assigns.
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b. |
In case of the borrower is a sole propriety firm, the person whose name appears
as sole proprietor and the term Borrower shall include his heirs, executors,
administrators and legal representatives and permitted assigns.
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c. |
In case the borrower is a partnership firm, the persons whose names are
mentioned in conducting their activities in partnership in the name and the
style as mentioned in the Firm column. The said firm together with his partners
in their individual capacities here in after referred to collectively as the
Borrower and shall include them and survivors and survivor of them or partners
or partner for the time being thereof and his/her/their respective heirs,
executors, administrators, legal representatives, successors and permitted
assigns.
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d. |
In case the Borrower is a limited company the term Borrower shall include its
successors, administrators and permitted assigns.
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EMI or Equated Monthly Instalment shall mean the amount payable
every month by the Borrower to the Bank comprising of Interest or as the case
may be principal and interest.
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Home Loan means the principal amount of loan granted by the Bank to the
Borrower in terms of this agreement. |
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Improvement includes construction, modification, renovation, maintenance
or any act for the i) upkeep ii) maintain iii) enhance the utility of, the
property.
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Interest Rate means the rate at which the bank shall compute and apply
interest on the Home Loan. |
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Default Interest Rate means the rate at which the bank shall compute and
apply interest on amounts not paid when due for payment by the Borrower to the
Bank. |
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The bank agrees on the borrowers request, representations, warranties, covenants
and undertakings contained in the application for Home Loan and other documents
executed by the Borrower in relation to the Home Loan, to lend to the borrower
and the Borrower agrees to Borrow from the Bank , the Home Loan on the terms and
conditions as fully contained in this agreement.
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The relationship between the Bank and Borrower as lender and Borrower shall
commences from the date of this Agreement and subsist until all monies dues and
payable by the Borrower to the bank under this Agreement and in all the other
documents pursuant here to shall have been fully paid to and received by the
Bank.
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The Bank shall be entitled at any time at its sole discretion to review/ modify/
add to, all/ any of the terms and condition of sanction/ grant of the said loan
to the Borrower and also which are contained herein, by giving a written notice
to that effect to the Borrower and the Borrower shall be bound by/ bound to
comply with the same.
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Fees, Charges and Claims
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The Home Loan shall bear Processing Fees, Administrative Fees and any other fees
as mentioned in this Agreement, Which the Borrower Agrees to reimburse to the
Bank separately.
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The Bank shall be entitled to recover from the Borrower, Commitment charges at
the rate mentioned in this Agreement on the amount of Home Loan.
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The Bank shall be entitled to recover from the Borrower Prepayment charges
mentioned at the rate mentioned in this agreement on the amount of Home Loan,
repaid by the Borrower ahead of the Repayment terms and conditions mentioned in
this Agreement.
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The Borrower hereby covenants with the Bank that the Borrower shall
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a.
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Use the said flat/house for the personal occupation of himself/herself and the
members of his/her family only, and for no other purpose whatsoever.
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b.
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Comply with all the applicable laws / obtaining permissions with respect to
purchase of property for which the bank has advanced and ensure that the
property is not in violation of laws in force.
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c.
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Always have until all his dues hereunder are not repaid to the bank, a clear and
marketable title to the property, free from all encumbrances whatsoever.
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d.
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Pay all rents taxes, cess and other outgoings payable by him / her in respect of
the said flat / house to the Government, Municipal Corporation, Co-operative
Housing Society, and Revenue Authorities etc.
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e.
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Maintain the property in good and substantial state or undertake repair as and
when necessary for well keeping of the house and use it for residential purpose
and not for any non-residential purpose.
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f.
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Shall not, during the tenure of this Agreement, avail of or obtain any further
loan or facility on the security of the property without the prior written
consent of the Bank.
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g.
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Notify the bank of any change / termination in the address, employment, business
or profession of the Borrower with in 10 days of such change.
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h.
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Execute all such other agreements, documents, declarations, undertakings as may
be required by the bank at any time during the term of the loan.
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i.
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Shall at all time be entitled through its authorised representative/s to enter
the said flat / house for the purpose of inspecting and viewing the condition
thereof, without any obstruction from the Borrower or any other person in
occupation thereof.
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j.
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Shall not leave India for employment or business or long stay with out first
fully repaying the Home Loan then outstanding due and payable with interest and
other dues, including repayment charges.
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The bank may by a written notice to the Borrower, declare all sums outstanding
under the Home Loan including the principal and all accrued interest to have
become due and payable forthwith and the security created in favour of the Bank
for the loan shall become enforceable upon the occurrence of the any one or more
of the following events.
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a.
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Payment of Dues
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If default shall have occurred in payment of the Pre EMI’s (PEMII) and or EMIs
and/or in payment of any other amounts due and payable to the Bank in terms of
this Agreement and/or in terms of any other agreement(s) / document(s) that may
be subsisting or that may be executed between the Borrower and the Bank.
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b.
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Performance of Covenants
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If default shall have occurred in the performance of any other covenants,
conditions and representations or agreements on the part of the Borrower under
this agreement or any other agreement(s) between the Borrower and the Bank in
respect of the Loan or any other loans.
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c.
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Supply of misleading Information
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If any information given by the Borrower to the Bank in the application or
otherwise is found to be misleading or incorrect in any material respect or any
representation or any warranty referred to in this Agreement is found to be
incorrect.
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d.
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Sale or Disposal of property
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If the property or any part thereof is sold, disposed of , charged, encumbered
or otherwise alienated in any manner whatsoever without prior permission of the
Bank.
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e.
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Attachment or Distraint of property
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If an attachment or distraint is levied on the Property or any part thereof
and/or certificate proceedings are taken or commenced for recovery of any dues
from the Borrower.
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Borrower fails to pay any taxes, duties and other statutory dues/ obligations
required to be fulfilled.
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g.
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Non-delivery of cheques
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If the Borrower fails to deliver post dated cheques in accordance with the terms
of the Loan or as and when demanded by the Bank.
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h.
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Security becoming unenforceable
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If any security or guarantee of the Loan becomes unenforceable or in fructuous
or is challenged by the Borrower or any other person.
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i.
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Cross default
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If the Borrower makes a default in performance of any of the terms, covenants
and conditions of any other loan or facility provided by the bank / Financial
Institution / Non Banking Finance Company/ Housing Finance Company and other
lenders to the Borrower.
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j.
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Death of the Borrower
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In the event of the death of the Borrower.
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k.
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Insolvency
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If the Borrower commits an act of insolvency or if the Borrower is declared
insolvent or bankrupt or if a liquidator, receiver or official assignees is
appointed in respect of any property or estate of the Borrower of if the
Borrower makes any application for declaring himself an insolvent or if an
application for declaring the Borrower as insolvent/bankrupt is made or any
order is passed by any competent authority for taking the Borrower into
insolvency then in any of these events the entire Loan amount shall become due
and payable forthwith.
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l.
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Notice on the Happening of an Event of Default
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In the event of occurrence of an event of default as provided herein or upon
happening of an event, which would have or perceived to have a material adverse
effect on the ability of the Borrower to repay the loans in terms of this
agreement or dilutes the value or the enforceability of the securities offered,
the Borrower shall forthwith give notice to the Bank in writing within ____ days
specifying such event of default and without prejudice to the rights of the
Bank, upon such notice by the Borrower or the Bank coming to Know such events or
events of defaults, the entire principal amount of loan together with interest
and all other amounts as stated herein shall become due and payable forthwith
and the Bank shall be entitled to enforce the security and recover the Loan with
interest and all other amounts.
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m.
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Collections
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The Borrower expresses, recognizes and accepts that the Bank shall, without
prejudice to its right to perform such activities itself or through its officers
or employees, be entitled and full power and authority to appoint one or more
third parties as the Bank may select and to delegate to such third party all or
any of its functions, rights and powers under this agreement relating to the
administration of the loan including the right and authority to collect and
receive on behalf of the Bank from the Borrower the PEMI, EMI and other amounts
due by the Borrower under this agreement.
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The Borrower expressly agrees that, in the event of the Bank appointing an agent
as aforesaid
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The Bank shall be entitled to provide information held by the Bank in relation
to the Borrower and the Loan.
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The Borrower shall cooperate with such agent appointed by the Bank in the name
manner as it would with the Bank in terms of this agreement.
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a.
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Place and Mode of Payment by the Borrower
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All monies, cheques and Bank drafts payable by the Borrower to the Bank under or
in terms of this agreement shall be drawn in favour of Bank on a scheduled Bank
and/or any other Bank in the town or city where the Office of the Bank is
situated or in any other manner as may be approved by the Bank and shall be so
paid as to enable the Bank to realize the amount sought to be paid on or before
the due date of payment Credit will be given only on realization thereof by the
Bank
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The Borrower may, if he so chooses, issue standing instructions to the Bank in
which the Borrower has an account, to debit the account of the Borrower every
month and credit such account as directed by the Bank, for the value of the
PEMI, EMI and/or any other amount due.
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The Bank shall apportion the monies credited to the account of the Borrower with
its office as aforesaid towards repayment and payment of the Bank Loan and
interest in accordance with the schedule of amortization and interest payments.
Any amount deposited by the Borrower before the date on which it is to be
appropriated for repayment or payment or any amount due to it shall be
appropriated by the Bank towards repayment and payment of amounts due only on
its due date.
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b.
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Cost and Expenses
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The Borrower shall additionally pay , forthwith on demand to the Bank all costs
between legal counsel and clients on a full indemnity basis incurred and/or to
be incurred by the Bank in connection with the investigation of the title of the
property, valuation of the property, preparation, execution, performance,
enforcement and realization of the Loan, security documents and other
instruments executed in pursuance hereof as also charges for Standing
Instructions, Electronic Clearing System (ECS), salary deductions.
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The Borrower shall pay to the Bank a charge not exceeding Rs. ____ /- for
dishonour of any cheque given by the Borrower. If payment is delayed beyond ___
days from the due date of the repayment or actual date of presentment such
cheque, the Borrower shall be liable to pay penal charges at the rate as
specified in the schedule, on the amount of overdue EMI / PEMI.
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c.
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Assignment
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The Borrower, his heirs, legal representatives, executors, administrators and
successors are bound by the terms of this agreement. However the Borrower shall
not be entitled to transfer or assign any of his rights and obligations under
this agreement. The Bank shall be entitled to sell, assign, securities or
transfer the Bank rights and obligations hereunder to any persons of Bank’s
choice in whole or in part and in such manner and on such terms as the Bank may
decide. Any such sale, securitisation, assignment or transfer shall conclusively
bind the Borrower.
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d.
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Sharing of Information
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The Borrower hereby authorizes the Bank or its subsidiaries/ affiliates and
their agents to exchange, share or part with al the information relating to the
Borrower’s loan details and repayments history information and all information
pertaining to and contained this Agreement to affiliates/subsidiaries of the
Bank/ Banks / Financial Institutions / Credit Bureaus / Agencies / Statutory
Bodies as may be required and undertakes not to hold affiliates / subsidiaries
of the Bank and their agents liable for use of the aforesaid information.
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e.
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Service of Notice
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Any notice or request to be given or made by a party to the other shall be in
writing. Such notice or request shall be deemed to have duly received by the
party to whom it is addressed if it is given or made at such parties address
specified below or at such address s such party shall have designated by notice
to the other party giving such notice or making such request.
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FOR ____________ Bank: Address of the Bank
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Effective Date of Agreement:
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This Agreement comes into force from the date mentioned in the schedule and
shall remain in force and effective until all the monies due payable to the Bank
under the Loan as well as under other Agreements.
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