Loan Agreement Summary

Loan Agreement Overview

This document is a loan agreement between Mahindra & Mahindra Financial Services Limited (the Lender) and the Borrower(s), which outlines the terms under which the Borrower will take a loan for purchasing a product, specifically a motor vehicle (Skoda Fabia).

Key Parties Involved

  • Lender: Mahindra & Mahindra Financial Services Limited

  • Borrower: Individual(s) borrowing the funds, with specified names and addresses.

  • Guarantor: Additional party guaranteeing the terms of the loan as specified.

Loan Amount and Product Information

  • Loan Amount: The total financial amount agreed upon for the product.

  • Product: Details of the vehicle to be purchased, such as make and model.

Payment Terms

  1. Installments: Payment of loan and interest in periodic installments as outlined in the agreement (Schedule 1).

  2. Down Payment & Security Deposit: A specific down payment must be made, and a security deposit will be held by the Lender.

  3. Interest Rate: The lender holds the right to revise the interest rate during the loan tenure.

  4. Late Charges: If payments are not made on time, late fees will apply (3% per month on outstanding amounts).

Borrower's Obligations

  • The Borrower agrees to:

    • Maintain the product in good condition.

    • Pay all taxes and fees associated with the product.

    • Insure the product against various risks and maintain all necessary documentation.

    • Notify the lender about product relocation.

    • Make timely payments regardless of product condition or availability.

Lender's Rights

  • The Lender reserves the right to:

    • Enforce repayment through legal action if the Borrower defaults.

    • Charge additional service fees for any requests or changes initiated by the Borrower.

    • Sell or dispose of the product in case of default, applying proceeds to outstanding debts.

Defaults

Events of default include:

  • Non-payment of installments.

  • Failure to insure the product.

  • Selling or transferring the product without consent.

  • Financial insolvency or bankruptcy.

Governing Law and Jurisdiction

  • This agreement is governed under the laws of India with disputes handled in Mumbai.

Miscellaneous

  • There are clauses relating to amendments, severability, and arbitration. Any modifications require written consent.

  • The document emphasizes that all outstanding charges, higher taxes, or any fees must be borne by the Borrower.

Conclusion

This loan agreement outlines the responsibilities and rights of both the borrower and lender. It emphasizes on maintaining the agreed payment schedule, product condition, and compliance with legal obligations regarding the product and its financing.