CRED - L&T Finance - Customer Loan Agreement

CRED cash terms & conditions

[Note: This is a draft document. After you consent, the relevant details shall be populated in the document and a final version would be made available.]

CUSTOMER LOAN APPLICATION FORM

I intend to avail a loan from the Lender by submitting this Application Form, which shall be facilitated by the Technology Facilitator through the CRED mobile application or its corresponding website ("Platform").

LOAN AGREEMENT

This Agreement (hereinafter referred to as the “Agreement”) is executed at ( ) on ( ):

L&T FINANCE LIMITED (formerly known as L&T Finance Holdings Limited), a Non-Banking Financial Company registered with the Reserve Bank of India and a company incorporated under the Companies Act, 1956 having its Registered Office at Brindavan, Plot No. 177, C.S.T Road, Kalina, Santacruz (East), Mumbai, Maharashtra - 400098, and having its place of business, inter alia, at New Delhi, Kolkata and Chennai, hereinafter called "Lender" (which term shall, unless excluded by or repugnant to the subject or context, be deemed to mean and include its successors and assigns);

AND

THE PERSON(S) referred to as the Borrower, more particularly described in the Schedule hereinafter referred to as the “Borrower” (which expression shall unless the context otherwise requires, include his/her heirs, legal representative, executors, administrator, successors, and permitted assigns).

Each of the Borrower and the Lender shall hereinafter be individually referred to as the “Party”, where the context so permits, and shall be collectively referred to as the “Parties”.

WHEREAS

A. The Lender has appointed Dreamplug Technologies Private Limited, a company registered under Indian Companies Act, 2013 with registered office at 404 Uphar II CHS Ltd., Plot No.5, BHD Sanjeeva ENCL, 7 Bunglows, Near Juhu Circle, Mumbai, Maharashtra, India - 400061 and having its corporate office at CRED, No. 769 and 770, 100 Feet Road, 12th Main, HAL 2nd Stage, Indiranagar, Bangalore, Karnataka – 560038 (hereinafter “CRED”) as their lending service provider and direct sales agent to offer personal loans provided by the Lender to the users of its CRED App. by the Lenders to the users of its CRED App

B. The Borrower has approached the Lender, via the CRED App, with a request to grant the credit facility for the Purpose and the Lender has agreed to lend to the Borrower the Loan on the terms and conditions as contained herein.

C. The Lender agrees to extend the Loan to the Borrower on the faith of the undertakings representations and warranties made by the Borrower.

NOW IT IS HEREBY AGREED AND DECLARED BETWEEN THE PARTIES HERE TO AS FOLLOWS:

1. TERMS OF LOAN

1.1 Based on the request, representation and information provided by the Borrower, via the CRED App, and subject to the terms and conditions of this Agreement, the Lender hereby agrees to lend to the Borrower the sum as mentioned in the Schedule (hereinafter “Loan Amount”, as the context may require) for personal requirements of the Borrower (hereinafter “Purpose”), for such number of years/months/days as mentioned in the Schedule (hereinafter “Tenure”).

1.2 This clause shall be applicable only if the Borrower has opted for insurance:

a) The Borrower acknowledges that he/she has opted to avail insurance from CRED and availed funding towards the insurance premium, from the Lender.

b) The Borrower agrees, consents and fully authorises the Lender:

i) to deduct the amount equivalent to the insurance premium and related charges, from the Loan Amount to be disbursed to the Borrower, and transfer such deducted amount to the said insurance partner towards insurance premium;

ii) to endorse the Lender as "loss payee/ beneficiary" for such insurance policy(ies);

c) The Borrower acknowledges that the first claim on all insurance proceeds shall always be that of the Lender and shall be applied towards the Outstanding Dues. Further, the Lender shall be entitled to retain the excess claim proceeds till the Outstanding Dues are discharged and return the remaining proceeds to the Borrower after setting off / adjusting against the Outstanding Dues. In case of unfortunate circumstances, including in the event of death of the Borrower, if the Lender receives claims towards the insurance availed by the Borrower, the Borrower authorizes the Lender to pay the excess insurance proceeds if any after deducting the entire Outstanding Dues, to the legal survivor(s).

d) The Borrower understands and agrees that the Loan Amount shall include the sum of the amount disbursed to the Borrower by the Lender, together with the processing fees, insurance premium charges and other mandatory charges as applicable.

1.3 The amount to be credited to the Borrower’s account (hereinafter “Net Disbursed Amount”) as detailed in the Schedule, shall be the Loan Amount excluding and sum of the Upfront Charges and the sum of insurance premiums (if applicable).

1.4 The Schedules at the end of this Agreement shall be deemed to be part of this Agreement, as if the provisions in the Schedule were set out in this Agreement in extension and shall be read in conjunction with each other.

1.5 This Agreement shall come to an end upon the Lender having, to its satisfaction, received the entire Loan Amount, the entire Interest and all other charges due and payable by the Borrower to the Lender as per the terms of this Agreement (hereinafter “Outstanding Dues”).

1.6 The Borrower hereby agrees to borrow and the Lender agrees to lend to the Borrower the Loan to the extent and on the terms and conditions set out in this Agreement including the Schedule.

1.7 All capitalized terms used if not specifically defined in this Agreement shall have the respective meanings ascribed to them under the Schedule.

2. INTEREST, REPAYMENT AND OTHER CHARGES

2.1 INTEREST:

a) The Borrower shall pay interest (hereinafter “Interest”) on the Loan Amount at such rate as specified in the Schedule. The Interest is determined by the Lender using the Internal Rate of Return (IRR) method; and when applied to the reducing balance of the Loan Amount is the “Annualised Interest Rate” (AIR). The Repayment Schedule and EMI amount is computed based on the AIR%. Interest when determined on the reducing balance of the Net Disbursed Amount is the “Annualised Percentage Rate” (APR). The AIR and APR are as mentioned in the Schedule and the Interest payable by the Borrower can be modified from time to time, with each such modification being applicable to the Borrower prospectively.

b) The Interest, Penal Charges/ Late Payment Charges accrues on a daily basis and is calculated on the basis of a year of 365 (three hundred and sixty-five) days.

c) GRADATION OF RISK: The Lender has assessed the income and credit profile of the Borrower to ascertain the Annualized Interest Rate for the Loan. The Lender's process and methodology of determining the rate of interest is provided on the Lender’s website (https://bit.ly/LTF_InterestRateModel), under the heading "Interest Rate Model". Any change in the Interest Rate Model shall be updated on the Lender's website and shall thereupon become applicable to the Borrower as per the terms of this clause.

d) The Lender agrees that changes in the Annualized Interest Rate and/or the Annualized Percentage Rate and charges shall be affected only prospectively.

2.2 REPAYMENT:

a) The Borrower shall repay the Loan Amount together with the Interest as mentioned in the Schedule (hereinafter “EMI Amount”/ “Installment Amount”) on equated monthly installments basis (hereinafter “EMI”) on due dates as mentioned in the Schedule (hereinafter “EMI Date”/ "Installment Date"). In the event of the Installment Date being a bank holiday or otherwise a declared or undeclared non-working day, the working day immediately preceding the Installment Date shall be deemed to be the Installment Date and Borrower shall arrange to ensure that the Lender realizes the monies on such deemed Installment Date. The interest shall be calculated from the disbursement date and the repayment schedule shall be shared with the Borrower along with the welcome kit after disbursement of the Loan.

b) Any payments made by/on behalf of the Borrower or any realizations in relation to the Loan, shall be appropriated towards the Outstanding Dues in the following order: (a) firstly, towards interest; (b) secondly, towards principal amount(s); (c) thirdly, towards Penal Charges, and (d) fourthly towards other charges due as per the terms of this Agreement.

Provided that, in the event the Borrower commits a default in payment as per the terms of this Agreement, all payments made by/on behalf of the Borrower or any realizations in relation to the Loan, shall be appropriated towards the outstanding dues in the following order: (a) firstly, towards the principal amount; (b) secondly, towards the interest; and (c) thirdly, towards Penal Charges, and (d) fourthly, towards any other charges due as per the terms of this Agreement.

Notwithstanding the above, the Lender may at its discretion modify the order of appropriation in the event the Borrower commits a payment default as per the terms of this Agreement.

c) All monies payable by the Borrower to the Lender shall be paid to the Lender using a Payment Mandate at Mumbai or at such office as may be specified by the Lender. Payment Mandate shall mean any manner or instrument of payment as approved by NPCI or RBI for transferring amounts from one Party to another, e.g., cheques, IMPS, RTGS, ECS, NACH, e-NACH, UPI, BBPS, etc., which shall be referred to as “Payment Mandate”. The Borrower hereby authorises the Lender and/or CRED to present the Payment Mandate for collection of EMI as per agreed terms or to re-present the Payment Mandate multiple times (if required) in case of payment default to recover Outstanding Dues.

2.3 CHARGES:

a) An amount towards processing the Loan as mentioned in the Schedule (hereinafter “Processing Fee”) shall be appropriated upfront from the Loan Amount by the Lender prior to disbursement.

b) On failure by the Borrower to pay to the Lender, the instalments in the manner that are/may become payable by the Borrower under this Agreement, the Lender reserves the right to charge Penal Charges/ Late Payment Charges as mentioned in the Schedule hereto (hereinafter “Penal Charges/Late Payment Charges”).

c) In the event of dishonor of any Payment Mandate, the Lender reserves the right to levy charges as mentioned in the Schedule (hereinafter “Payment Mandate Bounce Charges”).

d) If the Borrower requests for exchange of an existing Payment Mandate to a new Payment Mandate, the Lender reserves the right to levy charges as mentioned in the Schedule (hereinafter “Payment Mandate Swap Charges”).

e) Upon termination of this Agreement subject to the terms and conditions of this Agreement, if the Borrower requests for a duplicate copy of no-dues certificate, the Lender reserves the right to levy charges as mentioned in the Schedule (hereinafter “Duplicate No Dues Certificate Charges”). The Duplicate No Dues Certificate Charges will not be levied by the Lender for issuance of a duplicate copy of no-dues certificate for the first three times.

f) In the event the Lender incurs legal expense or costs towards recovery in connection with the Loan of the Borrower, the Lender reserves the right to levy charges as mentioned in the Schedule (hereinafter “Legal/ Recovery Charges”).

g) The Borrower may voluntarily choose to pay one EMI in advance prior to the due date. If such amount is equal to the EMI, the same shall be appropriated by the Lender towards the next EMI. The Lender shall not be liable to pay any interest on any such amounts paid in advance.

h) The final Installment Amount /Equated Monthly Installment (EMI) may vary based on the actual date of disbursement of the Loan Amount. The exact Installment Date / EMI Date shall be as per the Repayment Schedule which will be shared with the Borrower after the disbursement of the Loan Amount.

3. COOLING-OFF PERIOD, LOAN CANCELLATION, FORECLOSURE, PART-PREPAYMENT AND ITS CHARGES

3.1 If the Borrower cancels the Loan within there (3) days of disbursement of the Loan Amount (hereinafter “Cooling-off Period”), no charges shall be levied by the Lender. The Borrower acknowledges and understands that upon cancellation by the Borrower within the Cooling-off Period, the total Loan Amount (not just the Net Disbursed Amount) shall be payable by the Borrower to the Lender without the Loan Cancellation Charges.

3.2 If the Borrower cancels the Loan after the Cooling-off Period but before first Installment Date (hereinafter “Loan Cancellation”), the Lender may at its discretion levy such amount as mentioned in the Schedule (hereinafter “Loan Cancellation Charges”). The Borrower acknowledges and understands that upon cancellation, the total Loan Amount (not just the Net Disbursed Amount) shall be payable by the Borrower to the Lender together with the Loan Cancellation Charges.

3.3 The Borrower may opt to make prepayment of the Outstanding Dues, in full, anytime from the date of first disbursement without any prepayment charges.

3.4 In case of revision of said charges the revised charges will be updated on the “Schedule of Charges” on the Lender’s website(https://bit.ly/4inL1vX), and the same shall be applicable upon the Borrower when seeking to make Foreclosure or any Part-Prepayment of the Loan.

4. BORROWER's REPRESENTATIONS, COVENANTS, AND UNDERTAKINGS

The Borrower hereby agrees, declares and confirms that:

4.1 The Borrower's obligation to pay the total EMI Amounts and all other charges & monies payable under or pursuant to this Agreement, shall be absolute and unconditional.

4.2 The Borrower is not in default, or breach of any of the terms of this Agreement and/or any of the other loan documents; and no Event of Default is subsisting, nor is there any event or circumstance subsisting which constitutes, or is likely to constitute an Event of Default and/or a default under any document binding on the Borrower or any of its assets.

4.3 The Lender shall also have the right to stipulate any other and further terms and conditions that it may deem fit at any time prior to or after the grant of the Loan, which shall be binding on the Borrower.

4.4 The Borrower agrees and undertakes to act, to the extent and as applicable, in compliance and consistent with the “LTF Code of Conduct” as may be amended from time to time by the Lender as provided on the official website of Lender (https://bit.ly/3QDNXsA) in the manner and to the satisfaction of Lender, and applicable laws of the jurisdiction of the Borrower. The Borrower understands that compliance as provided under this clause is essential to the terms of this Agreement.

4.5 The Borrower agrees to use the Loan Amount for the specified Purpose and shall not use the same for any other purposes including investing in the capital market or for any speculative purposes, fraudulent/ unlawful purposes and/or antisocial purposes. The Lender shall have the right to recall the Loan if the funds are used for any speculative, unlawful and/or antisocial purposes and/or for any other reasons deemed inappropriate by the Lender.

4.6 In case it is considered necessary by the Lender, an audit, either by external or internal auditor will be conducted of the borrowal account. The said audit report will be obtained by the Lender to make a proper assessment if any suspicious/wrong or fraudulent activity is being carried out in the said borrowal account. In case, the audit report is inconclusive or delayed due to non-cooperation by the Borrower, the Lender shall, based on the material available on their record and their own internal investigation / assessment, classify such borrowal account as fraud or otherwise.

4.7 The Borrower agrees that in case of any update in the KYC and other documents submitted at the time of obtaining the loan and thereafter, the Borrower shall submit the update of such documents within 30 (thirty) days of the update to the documents by writing to customercare@ltfs.com for the purpose of updating the records at the Lender's end and fulfil the applicable regulatory requirements. Further in case the Borrower has, submitted any document deemed to be Officially Valid Document (“OVD”) ( utility bill such as electricity, telephone, post-paid mobile phone, piped gas, water bill; property or Municipal tax receipt; pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings; letter of allotment of accommodation from employer issued by State Government or Central Government Departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies and leave and licence agreements with such employers allotting official accommodation) supporting the current address for availing the Loan, then the Borrower has to submit any of the OVD (passport, the driving licence, proof of possession of Aadhaar number, the Voter's Identity Card issued by the Election Commission of India, job card issued by NREGA duly signed by an officer of the State Government and letter issued by the National Population Register) with updated current address to the Lender at the earliest possible and in no case later than 3 month from the date of submission of such deemed OVD.

4.8 The Borrower hereby confirms and declares that the Borrower/or the Borrower's immediate relative (and/or any of the Borrower's director(s) (or partner(s)/ member(s) in case the Borrower is an LLP / partnership / HUF) is not, directly or indirectly:

i) related to or is a director/senior officer or relative of the director(s) /senior officer(s) of Lender.

ii) interested in any firm in which any Lender’s director(s) or their relative(s) is interested as a partner, manager, employee or guarantor.

iii) interested in any company in which any of the director(s) of the Lender, or their relative(s) is/are interested as a major shareholder, director, manager, employee or guarantor.

5. CONSENTS

5.1 The Borrower hereby provides its consent to the Lender, CRED, its employees, representatives and/or its agents: (i) to share, the information and details of the Borrower, including repayment history, for the purposes of customer verification, personalization of products or services, credit rating, data enrichment, marketing or promotion of the Lender’s or related products, with its group companies, service providers, partners, banks, financial institutions, credit bureaus, statutory authorities and regulatory bodies, etc., (ii) to download and use its “Central Know Your Customer” (CKYC) record from the Central KYC Records Registry using its KYC Identifier for fulfilling KYC requirements, (iii) to process the personal information, including when obtained via KYC/e-KYC process, images and video data and images of my surroundings captured therein, for a period of 5 (five) years or as per the applicable law from the date of termination or expiry of this Agreement, (iv) to call/ SMS/Email/ WhatsApp/Telegram, etc. the Borrower in relation to this Loan and/or other products/ services offered by the Lender and/or its partners, and (v) to call/ SMS/Email/ WhatsApp/Telegram/physically visit, etc. the Borrower in relation to this Loan, the recovery of the Loan, and/or other products/ services offered by the Lenders and/or CRED. This consent overrides/ cancels the registration of the Borrower with the & National Do No Call Registry (NDNC) or “Do Not Disturb” (DNC) service, with respect to the Lender, CRED, its employees, representatives and/or its agents. This consent is subject to the Lenders’ privacy policy published/revised/amended on our website www.ltfs.com.

5.2 The Borrower authorizes the Lender to destroy the cheque(s) (if any) in the possession of the Lender upon repayment of the Loan together with all costs, charges and expenses, by the Borrower to the satisfaction of the Lender.

6. NOTICE

6.1 All communications/notices/letters/document/statements between the Lender and the Borrower shall be in English or in a language understood by the Borrower. Any notice, direction or instruction under this Agreement shall be in writing, sent at the email address/mobile number provided by the Borrower hand delivery, email, SMS, WhatsApp, registered post acknowledgement due or by way of courier. The address for delivery for the Lender shall be at its Registered office at Brindavan, CST Road, Kalina, Santacruz (East), Mumbai, Maharashtra - 400098, India and to the other Parties at their respective addresses as provided in the Schedule of this Agreement. Borrower shall update change of their addresses to the Lender within 7 (seven) days of such change.

6.2 Notice will be deemed given (i) in the case of hand delivery, on delivery; (ii) in case of email/SMS/WhatsApp, on having been sent (ii) in case of registered post acknowledgement due and courier dispatch, within 4 (four) calendar days after posting.

6.3 The Parties agree that the Lender may communicate the changes to the terms and conditions to this Agreement by Email/SMS at the email address/mobile number provided by the Borrower. If the Borrower has any concerns, then Borrower shall communicate the same to the Lender within 7 (seven) days from date of Email/ SMS. In absence of such communication, it is deemed that the Borrower has accepted such change in the Agreement.

6.4 In the event of default, the Lender shall communicate to the Borrower by the way of SMS or Email, the details of the recovery agent who is authorized by the Lender to approach the Borrower for recovery of Outstanding Dues.

7. DEFAULT OF LOAN AND THEIR CONSEQUENCES

7.1 EVENT OF DEFAULT
Breach of any of the below conditions shall mean default under this Agreement (hereinafter called “Default”). For ease of reference and understanding, the term Default shall apply to analogous situations for any and all events of a like nature, including when applicable to other loans and other borrowings of any nature that are of benefit to the Borrower:

(a) Fails to pay the Installment Amount and all other charges payable or part thereof within the stipulated time, whether demanded or not, as per the terms of this Agreement;

(b) Default by the Borrower in performance of any of their obligations under this Agreement;

(d) Occurrence of any circumstance or event which adversely affects Borrower's ability/ capacity to pay/ repay the Outstanding Dues or any part thereof or perform any of the obligations in the opinion of the Lender;

(e) If any attachment, distress, execution or other process against the Borrower / its assets is threatened, enforced or levied upon by any person;

(f) the event of death, insolvency, failure in business, bankruptcy of the Borrower, or change or termination of employment / profession / business for any reason whatsoever. The Borrower hereby understands, agrees and expressly provides that the Lender shall without any liability, and prior intimation, notice or without consent of the Borrower, in its sole discretion be entitled to inform, communicate, share or furnish information pertaining to commission or any omission or default committed by the Borrower to any statutory and/or regulatory authority and/or person authorized by such authority, RBI or otherwise under any applicable laws or regulation.

7.2 CONSEQUENCES OF DEFAULT
Notwithstanding the aforesaid, upon happening/ occurrence of any Default, without prejudice to the Lender’s rights and remedies under contract or law, and without necessity of any demand upon or notice to the Borrower, all of which are hereby expressly waived by the Borrower, and notwithstanding anything to the contrary contained herein or in any of the security documents (as the case may be), the Lender may at its absolute discretion, pursue any or all of the following, and whether simultaneously or independently or otherwise:

(a) declare the entire Outstanding Dues and all of the obligations of the Borrower to the Lender hereunder, to have become due and payable by the Borrower to the Lender forthwith, in which event the Borrower shall be liable to forthwith pay to the Lender the entire Outstanding Dues;

(b) to exercise, initiate and pursue any action, rights, notices, remedies, any proceedings (including ligation), whether civil, criminal or otherwise in nature, and including for recovery of Outstanding Dues.

(c) The Lender may however without being obligated to do so, in its sole and absolute discretion, on occurrence of a Default or any event which after the notice or lapse of time or both would constitute a Default, give notice to the Borrower in writing specifying the nature of such Default or of such event and where the Default is capable of being cured or remedied, specify a time period within which such Default or event is to be cured to the satisfaction of the Lender, failing which the Lender shall be entitled to pursue all or any of the actions as contemplated above.

Upon the occurrence of any of the events in Clause 7.1, all of the outstanding amounts shall immediately become due for payment, subject to the Lender issuing a notice for such payment of outstanding amounts. At the discretion of the Lender, the Borrower herein can be granted a suitable time period for such payment of the outstanding amounts. Any notice of recall issued by the Lender shall continue to remain valid, binding and active, unless specifically rescinded by the Lender in writing. The Borrower can submit a request to the Lender for rescinding the notice for payment of outstanding amounts after regularizing his loan with the Lender by paying the Installment Amount and all other charges payable to the Lender. Independent of issuing the notice mentioned hereinbefore, Lender shall share information of the occurrence of the events in Clause 7.1 with the credit rating and statutory agencies. Such information once shared by the Lender cannot be rescinded and shall continue to remain part of the records of such agency as per their policy.

7.3 IRAC CLAUSE:

(a) Notwithstanding any other provisions of this Agreement and any rights available to the Lender under the applicable laws, the Lender shall, in compliance with RBI’s Clarification on Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances dated November 12, 2021 as amended from time to time and /or as required/ directed by RBI (“RBI IRACP Norms”), classify and notify the Loan as an overdue account under day-end processes on the due date as per Lender’s internal processes.

(b) Additionally, subject to the RBI IRACP Norms and applicable laws, the Lender shall classify the Loan as SMA or NPA on the relevant due date in accordance with the day-end process followed by the Lender. The SMA or NPA classification date and asset classification status of the Loan shall be as on the date of the Lender’ day-end process for the said Loan.

(c) For the purpose of clarity stating below an example:
If the due date of a loan account is March 31, 2021, and full dues are not received before the lending institution runs the day-end process for this date, the date of overdue shall be March 31, 2021. If it continues to remain overdue, then this account shall get tagged as SMA-1 upon running the day-end process on April 30, 2021 i.e., upon completion of 30 days of being continuously overdue. Accordingly, the date of SMA-1 classification for that account shall be April 30, 2021. Similarly, if the account continues to remain overdue, it shall get tagged as SMA- 2 upon running day-end process on May 30, 2021 and if it continues to remain overdue further, it shall get classified as NPA upon running day-end process on June 29, 2021.

(d) Upgradation of the account classified as NPA - loan accounts classified as NPAs may be upgraded as ‘standard’ asset only if the entire arrears of interest and principal are paid by the Borrower.

8. SET OFF, COUNTERCLAIM

The Lender shall have right to apply and/or appropriate and/or set off any monies which are in excess of outstanding dues arising out of enforcement of the Security on the Assets (including but not limited to property, assets, securities, shares, stocks etc.,) charged by the Borrower(s) in favour of the Lender or coming into the hands of the Lender under any other agreement executed between the Lender and the Borrower, towards the repayment of Outstanding Dues under the Loan given under this Agreement, upon occurrence of the default.

9. ARBITRATION AND JURISDICTION

9.1 Any dispute or claim arising out of or in relation to this Agreement, the sanction letter, the Key Facts Statement, or any other document in relation to this Loan, including their existence, construction, meaning, scope or validity, termination or breach shall be governed by the laws of India and referred to and resolved by arbitration, administered electronically, by a sole arbitrator to be appointed by any of the below mentioned online dispute resolution forums (“ODR”) namely:

(a) Presolv360, having its office at 1st floor, Esperanca building, Shaheed Bhagat Singh Road, Colaba, Mumbai -400001; Website:http://www.presolv360.com/, Email:admin@presolv360.com

(b) Any arbitral institution designated as ODR under the provisions of the Arbitration and Conciliation Act, 1996 (“the Arbitration Act”) as updated on the website of Lender from time to time. The updated list of such ODR shall be provided under the heading “LTF ODRs” (which can be directly accessed by the following link:https://www.ltfs.com/docs/default-source/default-document-library/arbitration-clause.pdf?sfvrsn=2154ab1b_1

9.2 Either Party may at its own discretion approach any of the ODR seeking appointment of a sole arbitrator by writing an email with a request to appoint a sole arbitrator and copying the email to the other Party. The email address of the Borrower shall be as provided by the Borrower in the loan application form/loan journey and/ or as mentioned in this Agreement and the email address of the Lenders shall be as mentioned in this Agreement. Each Party shall inform the other Parties about any change in the email address.

9.3 The arbitration proceedings shall be carried out in accordance with the rules of the ODR as prevailing and as amended from time to time.

9.4 The arbitration proceedings shall be based on documents only, and shall be conducted through exchange of e-mail and/or any other mode of electronic communication as permitted by the rules of the respective ODR. The Parties hereby agree that the arbitral proceeding shall be conducted in electronic mode and all pleadings and documents will be exchanged electronically. There shall be no in-person and/or oral hearings except in certain exceptional circumstances as the arbitrator may deem fit upon the request of either of the Parties. In such instances, the hearings shall be conducted physically at the sole discretion of the arbitrator. The seat of arbitration for all purposes shall be at Kolkata. The language of arbitral proceedings shall be English.

9.5 In the event the arbitrator to whom the matter is originally referred, resigns or dies or is unable to act for any reason, the ODR, as per its rules, shall appoint another person in his/her place to act as arbitrator who shall proceed with the reference from the stage at which it was left by his/her predecessor.

9.6 All notices, processes and communications between the Parties with respect to the arbitration proceedings shall be through e-mail or any other mode of communication permitted by the ODR, notwithstanding the notice clause contained in the Agreement which shall continue to apply to all other communications between the Parties.

9.7 It shall be the responsibility of the Parties to keep their email addresses active and maintain sufficient space in the e-mail account and/or in any other mode of electronic account(s) and also to have supporting applications/software in their computer/mobile/any other electronic device to access the electronic documents sent to them. It shall also be the responsibility of the Parties to save the emails in the address book. The delivery of emails to folders pertaining to spam, promotion, etc., by whatever name called by the email service providers, shall also be a deemed delivery.

9.8 Subject to the foregoing, the courts at Kolkata, West Bengal or such place as may be solely decided by the Lender shall have exclusive jurisdiction in respect of matters arising under this Agreement including any application for setting aside the award/appeal and the Parties shall not object to such jurisdiction. The arbitration shall be conducted under the provisions of the Arbitration and Conciliation Act, 1996 together with its amendments, any statutory modifications or re-enactment thereof for the time being in force. The award of the arbitrator shall be final and binding on all parties concerned.
The cost of arbitration shall be borne by the Party against whom the award shall be passed

10. MISCELLANEOUS

10.1 TAXES:
The Borrower shall bear all such imposts, duties and taxes (including interest and other taxes if any) as may be levied from time to time by the Government or any other authority pertaining to or in respect of the Loan. In the event of the Borrower withholds taxes on the interest or any other charges as per the prevailing Indian Income-tax laws e at the time of such payment (TDS), the Borrower shall furnish to the Lender a certificate of such TDS within 45 (forty-five) days from the end of the quarter in which deduction is made. In case, if the Borrower has not deposited tax deducted to the exchequer and/or, after depositing, not issuing TDS Certificate to the Lender within the prescribed timeline or if the amount deducted is not reflected in Form 26 AS, then the Lender reserves the right to recover from the Borrower such tax along with interest as levied by Income Tax Department.

10.2 EXECUTION OF THIS AGREEMENT AND THE VALIDITY OF THE PROCESS:
The parties hereby acknowledge and agree for the electronic execution of this Agreement, including using OTP Based Electronic Signature. The Borrower further agrees that this Agreement may be executed at the registered office or any of its place of business as may be deemed fit by the Lender

10.3 AMENDMENT:
Any amendment(s), modification(s), revision(s) of this Agreement, the Schedule and any other documents shall be in writing, which writing shall form an integral part of this Agreement without the need to enter into any supplementary agreement.

10.4 INFORMATION:
The Borrower undertakes to furnish to the Lender, any such information called for by the Lender during the pendency of the Loan and shall not in any way keep the same in abeyance. The Borrower agrees that it shall be discretionary on the part of the Lender to consider such non-furnishing of information to be an Event of Default on part of the Borrower.

10.5 ASSIGNMENT AND TRANSFER:
The Lender shall have a right to sell or transfer (by way of assignment, securitisation or otherwise) whole or part of the Loan and outstanding amounts under the Loan or any other rights under this Agreement or any other document pursuant hereto to any person in a manner or under or under such terms and conditions as the Lender may decide in its sole discretion including reserving a right to the Lender to retain its power hereunder to proceed against the Borrower on behalf of the purchaser, assignee or transferee, any or all outstanding and dues of the Borrower, to any third party of the Lender’s choice without reference to or without intimation to the Borrower. Any such action and any such state, assignment, securitisation or transfer shall bind the Borrower to accept such third party as creditor exclusively or’ as a joint creditor with the Lender, or as creditor exclusively with the right to the Lender to continue to exercise all powers hereunder on behalf of such third party and to pay over such outstanding and dues to such third party and or to the Lender as the Lender may direct. The third party shall have the authority of the Borrower to collect the due amounts. The Borrower shall not transfer or assign the rights under this Agreement without previous written consent of the Lender.

10.6 GRIEVANCE REDRESSAL:
The Lender has designated a grievance redressal officer to redress the grievances of the Borrower. The details of the grievance redressal mechanism and the grievance redressal officer are provided in the Schedule.

10.7 UNCONDITIONAL CANCELLATION:
During the Loan Tenure, the Lender shall have an unequivocal, unqualified and unconditional right to cancel any of the amounts not drawn by the Borrower. The Lender shall not be responsible or liable for any cost, loss, damage or expenses or other consequence caused by reason of such cancellation/ non disbursement. From the date of such cancellation of the available limits, the Borrower shall not be able to make any drawdown, but shall continue to fulfill its obligations under this Agreement for the Loan Amount already draw.

SCHEDULE

DETAILS OF THE BORROWER

Has the Borrower opted for the Top-up facility?

If yes, specify the date of the First Loan Agreement

Loan Account Number of First Loan

Loan Agreement Date

Name of the Borrower

Permanent address of the Borrower

Correspondence address of the Borrower (for communication/ notices)

Email address of the Borrower

Mobile number of the Borrower

WhatsApp number of the Borrower

DETAILS OF THE LOAN

Loan Agreement / Account Number (LAN)

Purpose of Loan

Loan Amount (In figures)

Rs.

Loan Amount (In words)

Rs.

Net Disbursed Amount

Rs.

Tenure (in months)

Months

Annualized Interest Rate

% p.a.

Annualized Percentage Rate

% p.a.

1st estimated EMI Date*

EMI Amount (In figures)

Rs.

EMI Amount (In words)

Rs.

Instalments/ Frequency of Repayment

Equated Monthly Repayments (EMI)

Cooling-Off Period
(Ref.: Clause 3.1 of the Loan Agreement)

3 (three) days

Mode of Repayment

*This is an estimated EMI Date which may vary by one/two months based on date of disbursement. Exact EMI Date shall be as per the Repayment Schedule.

UPFRONT CHARGES

Processing Fee
(Ref.: Clause 2.3(a) of the Loan Agreement)

Rs.

Annual Maintenance Charge

NIL

Issuance of Statement of Accounts

NIL

Issuance of Repayment Schedule

NIL

Issuance of Foreclosure Letter

NIL

Issuance of other documents)

NIL

*The Borrower does not have to separately pay the above amounts. The Loan Amount is inclusive of above amounts. In the event of Loan Cancellation, the above amount is not refundable.

CONTIGENT CHARGES

Loan Cancellation Charge
(Ref.: Clause 3.2 of the Loan Agreement)

NIL

Prepayment Charges
(Ref.: Clause 3.4 of the Loan Agreement)

NIL

Foreclosure Charges

NIL

Penal Charges/Late Payment Charges
(Ref.: Clause 2.3(c) of the Loan Agreement)

NIL

Payment Mandate Bounce Charges
(Ref.: Clause 2.3(d) of the Loan Agreement)

Loan sanction amount in Rs.	CBC in Rs.
< 5 Lakhs	NIL
5 – 50 Lakhs	NIL
> 50 Lakhs – 2 Cr	NIL
> 2 Cr	NIL

Payment Mandate Swap Charges
(Ref.: Clause 2.3(e) of the Loan Agreement)

NIL

Duplicate No Dues Certificate Charges
(Ref.: Clause 2.3(f) of the Loan Agreement)

NIL

Legal / Recovery Charges
(Ref.: Clause 2.3(g) of the Loan Agreement)

As per actuals

DETAILS OF THE INSURANCES AVAILED BY THE BORROWER (OPTIONAL)*

Credit Linked Insurance

Hospicash

General Insurance

Rs.

*The Borrower does not have to separately pay the above amounts. The Loan Amount is inclusive of above amounts, if availed by the Borrower. In the event of Loan Cancellation, the above amount is not refundable.

ADDITIONAL DETAILS

Exact Due Date for Repayment of Loan

As per the Repayment Schedule

Breakup between Principal and Interest

As per the Repayment Schedule

Example of SMA/NPA Classification

Please refer Clause 7.3 of the Loan Agreement

The exact date of commencement of repayment of Loans with moratorium facility

As per the Repayment Schedule

FORMAT OF REPAYMENT SCHEDULE*

Instalment No.	Instalment Date	Instalment Amount	Principal Amount	Interest Amount

*This is a format of the Repayment Schedule. The final Repayment Schedule shall be shared with the Borrower along with the welcome kit after disbursement of the Loan.

Grievance Redressal

1. Customer Service and Grievance Redressal
A.	Reach at our branch - Contact person	Branch Support Executive - add branch locator weblink
B.	Address / Contact details	Kindly refer our website: www.ltfs.com
C.	Visiting Hours – Branches (except Public Holidays, Sundays and 2nd & 3rd Saturday)	All week days 10.00 am to 6.00 pm.
C.	Reach Central Customer Service - Contact Person	1800 268 0000 - All days 9am to 6pm
C.	E-mail Address of Lender	customercare@ltfs.com
2. Procedure to obtain any documents / requests / clarification A. You may choose to reach us for any clarifications, requests or any statement request through any of the aforesaid contact points B. Timelines for general requests (kindly contact our representative for details / requests other than listed below): - Statement of Accounts / clarification request – Available on LTFS PLANET App - Address changes / Payment mode changes / refund etc. - 10 days - Document retrieval (post maturity / closure) - 10 days - Photocopy of title documents – 10 days
You may contact the Grievance Redressal Officer (GRO) / Principal Nodal Officer (PNO) in case if you are not satisfied with the response /service level and you would like to lodge your grievance
	GRO Email Address GRO Contact Number PNO Email Address PNO Contact Number	gro@ltfs.com 1800 1020 476 - All days 9am to 6pm pno@ltfs.com 18001038712 – All days 9am to 6pm
	If you are still not satisfied with the response received or the complaint / dispute is not redressed within a period of one month, you may appeal to Reserve Bank of India by lodging a complaint on https://cms.rbi.org.in/ or by contacting the below address. Centralized Receipt and Processing Centre, Reserve Bank of India, 4th Floor, Sector 17, Chandigarh – 160017 Toll Free No. 14448 It is hereby agreed that for detailed terms and conditions of the Loan, the Borrower (s) is requested to refer and rely upon the Loan Agreement and other security documents executed/ to be executed with Lender. The details contained in this document may be subject to change as per the Lenders’ policy or based on the Regulatory norms and in line with the terms contained in the Loan Agreement.

Key Fact Statement

Loan proposal/ account No

Type of Loan

Purpose of Loan

Personal Loan

Sanctioned Loan amount (in Rupees)

Disbursal schedule
(i) Disbursement in stages or 100% upfront.
(ii) If it is stage wise, mention the clause of loan agreement having relevant details

100% upfront

Loan term (year/months/days)

Instalment details

Type of instalments

Number of EPIs

EPI (₹)

Commencement of repayment, post sanction

Monthly

Loan Tenure (Months)

EMI Amount

Interest rate (Annualised)

Type (fixed or floating or hybrid)

%

Fixed

Additional Information in case of Floating rate of interest :

Reference Benchmark

Benchmark rate (%) (B)

Spread (%) (S)

Final rate (%) R = (B) + (S)

Reset Periodicity (Months)

Impact of change in the reference benchmark (for 25 bps change in ‘R’, change in:)

EPI (₹)

No. of EPIs

Fee/ Charges

Payable to the RE (A)

Payable to a third party through RE (B)

One-time/ Recurring

Amount (in ₹) or Percentage (%) as applicable

One-time/ Recurring

Amount (in ₹) or Percentage (%) as applicable

(i)

Processing fees

One - time

(ii)

Insurance charges
Life Insurance
Health Insurance
Wellness

One - time

Individual Insurance Sourced Premiums Amount with GST

Annual Percentage Rate (APR) (%)

Details of Contingent Charges (in ₹ or %, as applicable)

(i)

Penal charges, if any, in case of delayed payment

NIL

(ii)

Other penal charges, if any

(iii)

Foreclosure charges, if applicable

NIL

(iv)

Part Prepayment charges

NIL

(v)

Charges for switching of loans from floating to fixed rate and vice versa

(vi)

Duplicate NOC Charges

NIL

(vii)

Repayment Swap Charges (per swap)

(viii)

Payment Mandate Dishonour /Bounce Charges

Loan sanction amount in Rs.	Changes in Rs.
< 5 Lakhs	NIL
5 – 50 Lakhs	NIL
> 50 Lakhs – 2 Cr	NIL
> 2 Cr	NIL

(ix)

Loan Cancellation Charges post cooling off period of 3 days

NIL

(x)

Legal/ Recovery Charges

As per actuals

IN WITNESS WHEREOF, the Borrower and Lender hereby set their hands to digitally execute these presents the day and year first hereinabove written.


Borrower	L&T Finance Limited Authorised Signatory

IN WITNESS WHEREOF, the Borrower and Lender hereby digitally execute these presents the day and year first hereinabove written.

Digitally accepted by the Borrower on

Consent Mode	OTP sent to	OTP submitted on CRED App at	Device used for furnishing OTP
OTP

Authorised Signatory
L&T Finance Limited