Terms of the Loan
1. Loan Details and Example
We offer loans up to Rs. 4,00,000 with repayment terms between 3 to 6 months. The service charge is limited to 2% of the loan amount, with a daily interest rate of 0.07% and an APR of 25.35%.
If you borrow Rs. 20,000 for 3 months at an APR of 25.35%, the processing fee will be Rs. 400, plus Rs. 72 GST (totaling Rs. 472). The total interest payable over the term will be Rs. 1,250, resulting in a monthly EMI of Rs. 7,083. The total repayment amount at the end of the term will be Rs. 21,722.
2. Determination of Loan Amount
The value of the loan to be disbursed to the borrower shall be determined based on the amount requested through the loan application submitted to the lender. Following a mutual agreement on the requested amount by both the borrower and the lender, the loan will be executed in compliance with the terms outlined in this agreement.
3. Responsibilities of the Borrower
a. Acknowledgment of Terms: The borrower has thoroughly reviewed and agrees to abide by the conditions and stipulations of this loan agreement.
b. Integrity of Information: The borrower asserts that the information provided in the application is correct, comprehensive, and devoid of any fraudulent statements.
c. Repayment Pledge: The borrower promises to fulfill the repayment of the loan principal and interest faithfully according to the agreed schedule.
d. Credit Status Verification Consent: The borrower agrees to allow the loan service provider to examine and verify their credit standing and ability to repay the loan when necessary.
4. Repayment Schedule and Penalties
· Start of Repayment Term: The borrower agrees to initiate repayments based on the agreed method and cycle from the activation date of this agreement, until the loan and interest are fully paid.
· Overdue Repayment Interest: Failure to repay on the scheduled date results in the accrual of interest on the overdue amount at the annual rate agreed upon by both parties, until the outstanding loan and interest are settled in full.
· Prepayment Rights: The borrower reserves the right to prepay the loan, whether partially or in full, prior to the maturity of the repayment term.
5. Pledges by Shyam Credit
a. Fulfillment of Loan Provision: Shyam Credit will execute the loan provision to the borrower in a single disbursement, conforming to the conditions of this agreement.
b. Repayment Strategy Guidance: Shyam Credit promises to deliver an explicit repayment guide, highlighting the repayment duration, payment sums, and other essential data, aiding the borrower in the timely repayment process.
c. Security of Personal and Repayment Data: Shyam Credit vows to securely manage the borrower's personal details and repayment records, ensuring these are not disclosed or misused.
6. Guarantee and additional agreement
a. Eligibility Confirmation: The borrower affirms their status as a legal Indian citizen or resident, over 18 years of age, and possessing the legal capacity to enter and fulfill this agreement.
b. Funds Utilization Guarantee: The borrower commits to the lawful utilization of the loaned funds and accepts full liability for any legal infractions resulting from improper use of these funds.
c. Notification in Event of Unforeseen Circumstances: Should unforeseen circumstances such as significant accidents, substantial losses, or acts of force majeure impede timely repayment, the borrower agrees to promptly inform the lender and provide necessary documentation.
For all issues not contemplated by this agreement, the parties shall enter into separate negotiations to agree upon and document the terms in a supplementary agreement.
7. Implications for Non-Adherence to Repayment Obligations
a. Accrued Interest on Overdue Payments: Borrowers failing to honor the repayment conditions as detailed in this Agreement will incur interest on any overdue amounts, aligning with the terms specified.
b. Legal Steps for Recovery of Dues: Shyam Credit reserves the authority to undertake legal measures against borrowers who default on their repayment commitments. This encompasses the dissemination of borrower information to credit tracking agencies and initiating court proceedings to reclaim the owed amounts.
8. Change in Agreement
All updates, changes, or supplements to the conditions of this Agreement necessitate drafting in a written format, which shall then be validated through the mutual agreement and signatures of the involved parties.
