CRED - L&T Finance - Newtap 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 Loan Agreement (this “Agreement”) is made on the date on which the Borrower has executed this Agreement at Kolkata:

1. 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 provisions of the Companies Act, 1956 bearing CIN No. L67120MH2008PLC181833 and PAN No. AABCL5046R,having its registered office at Brindavan, Plot No. 177, C.S.T Road, Kalina, Santacruz (East), Mumbai – 400098, Maharashtra, India and its place of business, inter alia, at New Delhi, Kolkata and Chennai (hereinafter referred to as “Lender 1” or “LTF” which expression shall unless be repugnant to the context or meaning thereof include its successors and assigns);

AND

2. Newtap Finance Private Limited (previously known as Parfait Finance and Investments Private Limited), a non-banking financial company registered with the Reserve Bank of India, having PAN AACCP3655M, its registered office at Office 03A 102-B, WeWork (Enam Sambhav), C-20, G Block Rd, G Block BKC, Bandra Kurla Complex, Bandra East, Mumbai, Maharashtra, India – 400051 and having its corporate office at KP Towers, 777A, 3rd Floor, 13th Main Corner, 13th Main Road, HAL 2nd Stage, Doopanahalli, Indiranagar, Bengaluru, Karnataka – 560008 (hereinafter referred to as “Lender 2” or “Newtap” which expression shall unless be repugnant to the context or meaning thereof include its successors and permitted assigns);

AND

3. The person described and as stated in SCHEDULE 1 (hereinafter referred to as the“Borrower” which expression shall unless be repugnant to the context or meaning thereof include its successors and permitted assigns)

Lender 1 and Lender 2 are hereinafter individually referred to as the “Lender” and collectively as the“Lenders”. The Lenders and the Borrower are individually referred to as “Party” and collectively as“Parties”.

WHEREAS

1. The Lenders have 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 Lenders to the users of its CRED App

2. The Borrower wishes to avail a personal loan and has applied for the same to the Lenders via the CRED App.

3. Relying upon the representations made by the Borrower, the Lenders have agreed to make available a Loan to the Borrower, as requested through CRED App upon the terms and conditions mentioned in this Agreement.

NOW THIS AGREEMENT WITNESSES AS FOLLOWS.

1. DEFINITIONS

1.1 In this Agreement unless the context otherwise requires:

“Applicable Law” means and includes any statute, law, regulation, ordinance, rule, judgment, rule of law, order, decree, clearance, approval, directive, guideline, policy, requirement or other governmental restriction or any similar form of decision or determination by or any interpretation or administration of any of the foregoing by any statutory or regulatory authority, whether in effect as of date of this Agreement or thereafter and in each case as amended from time to time.

“Business Day” means a day which is not a Sunday or a public holiday for the purposes of Section 25 of the Negotiable Instruments Act, 1881 and on which the banks are open for ordinary course of business in Kolkata, India.

“CRED App” means the technology platform offered by CRED, through a mobile application.

“Designated Bank Account” means the bank account of the Borrower verified in the CRED App during the Loan journey and in respect of which NACH mandate has been set up.

“Direct Sales Agent” shall have the meaning ascribed to it under the RBI Directions.

“EPI” means the equated amount of periodic payment specified in Schedule 1, necessary to amortize the Loan with interest, over the period of the Loan.

“Event of Default” shall have the meaning ascribed to it in Clause 7.1.

“Final Settlement Date” means the date on which all the Outstanding Dues under the Agreement have been irrevocably and unconditionally paid and discharged in full by the Borrower, to the satisfaction of the Lenders.

“Key Facts Statement” shall have the meaning ascribed to it under the RBI Directions.

“Loan/Facility” means a personal loan sanctioned by the Lenders to the Borrower under this Agreement.

“NACH Mandate” has the meaning ascribed to such term in Clause 5.2.

“Outstanding Dues” means, at any time, all the amounts outstanding and payable by the Borrower to the Lenders, pursuant to the terms of this Agreement, including but not limited to the following:

(a) the principal amount(s) of the Loan;

(b) the interest on the Loan; and

(c) all other obligations and liabilities of the Borrower including penal charges, fees and charges, Annualised Interest Rate, expenses and indemnities incurred under, arising out of or in connection with this Agreement.

2. APPOINTMENT OF LENDING SERVICE PROVIDER / DIGITAL LENDING APP

The Parties agree and acknowledge that CRED has been appointed as a ‘direct sales agent’, ‘outsourced service provider’, ‘lending service provider’ and ‘digital lending app’ operator in accordance with RBI’s Directions on Managing Risks and Code of Conduct in Outsourcing of Financial Services by NBFCs (RBI/2017-18/87, DNBR.PD.CC.No.090/03.10.001/2017-18) and Guidelines on Digital Lending (RBI/2022-23/111 DOR.CRE.REC.66/21.07.001/2022-23) (“RBI Directions”) to source customers for the Lenders, allow customers to apply for loans from the Lenders using the CRED App, and to assist the Lenders by providing debt recovery services to the Lenders.

3. LOAN DETAILS

3.1 Key Facts Statement: As mandated by the Reserve Bank of India, the Key Facts Statement has been displayed to the Borrower while applying for the Loan on the CRED App and it is also appended to this Agreement in Schedule 2.

3.2 Amount: Pursuant to the application made by the Borrower through the CRED App, the Lenders have agreed to grant the Loan to the Borrower of sum, as stated in Schedule 1 of this Agreement (hereinafter “Loan Amount”) for the personal requirements of the Borrower (hereinafter “Purpose”) in the terms and conditions set forth in this Agreement. The amount to be credited to the Borrower’s account (hereinafter “Net Disbursed Amount”) as detailed in the Key Facts Statement, shall be the Loan Amount excluding the sum of the other upfront charges (including processing fees and insurance charges).

3.3 Term: The Loan provided under this Agreement shall be for a period as specified in Schedule 1 of this Agreement.

3.4 Interest: The Borrower shall pay interest (hereinafter “Interest”) on the Loan Amount at such rate of interest as set out in Schedule 1 of this Agreement. The rate of interest shall remain fixed unless required to be varied by the Lenders in accordance with Applicable Law.

3.5 Penal Charges: Upon occurrence of any Event of Default, inter alia, penal charges as set out in Schedule 1 (if any) shall be additionally payable by the Borrower.

3.6 Fees and Charges: Fees and charges shall be as set out in Schedule 1 of this Agreement and as disclosed in the Key Facts Statement. The schedule of charges will also be available and updated on the website of Lender 1 here.

3.7 The Lenders shall provide notice to the Borrower in accordance with Clause 13 in case of any changes in the terms and conditions of this Agreement, including disbursement schedule, interest rates, service charges, prepayment charges etc. Lenders shall ensure that any change in interest rates and charges are affected only prospectively.

4. DISBURSEMENT AND FREE LOOK PERIOD

4.1 The amount as set out in the Key Facts Statement, i.e. the Net Disbursed Amount, shall be disbursed to the Borrower in the Designated Bank Account by way of an electronic credit which may be using Real Time Gross Settlement (RTGS), National Electronic Fund Transfer (NEFT), or Immediate Payment Service (IMPS). For avoidance of doubt, it is clarified that Lenders shall disburse the Loan Amount after deducting the processing fee and insurance charges (as applicable).

4.2 A period of 3 (three) days from the date of disbursal shall be the free look period (“Free-Look Period”). If the Borrower believes that it has availed the Loan without intending to do so, the Borrower may repay the Loan Amount for the Free Look Period and close the Loan without any pre-payment charges. The Borrower acknowledges and understands that upon cancellation by the Borrower within the Free-Look Period, the total Loan Amount (not just the Net Disbursed Amount) shall be payable by the Borrower to the Lenders. The Borrower acknowledges and understands that upon cancellation of the Loan by the Borrower at any time after the Free Look Period, the total Loan Amount (not just the Net Disbursed Amount) shall be payable by the Borrower to the Lender together with the proportionate Annualised Percentage Rate. The Borrower may do so by sending an email to support@cred.club, support@newtap.in, or to customercare@ltfs.com.

5. REPAYMENTS

5.1 Manner of Repayment: The Borrower agrees and undertakes to repay the Loan in EPIs as per the repayment schedule set out in Schedule 2.

5.2 Mandate Set-Up: Prior to entering into this Agreement, the Borrower shall have set up an e-NACH mandate as a part of the customer journey on the CRED App, to allow automatic transfer from the Designated Bank Account of the EPI amount on each EPI date as set out in Schedule 1. The Borrower agrees and acknowledges that: (i) the debit frequency specified shall be as “As and when presented”; (ii) debit type specified shall be as “Maximum”; (iii) period of mandate shall be specified with an identified date at the discretion of the Lenders. The Borrower agrees and acknowledges that CRED (on the instructions of the Lenders) and/or the Lenders shall present / exercise the e-NACH Mandate to recover EPIs as well as Outstanding Dues and any other amounts that are due from the Borrower pursuant to or otherwise.

The Borrower understands, confirms and agrees that CRED and/or the Lenders shall, at its sole discretion, at multiple occasions and on different dates, present in the Borrower’s Designated Bank Account, the e-NACH mandate which returns unpaid, for recovering the EPIs and/or the Outstanding Dues from the Borrower and until realization of all Outstanding Dues. The Borrower agrees and undertakes that the Borrower shall not dispute, complain or object to such presentations by CRED and/or the Lenders. The Borrower agrees and confirms that repayment in the form of cash will not be accepted by the Lenders.

5.3 Obligation to Maintain Funds: Borrower shall be solely responsible to ensure that adequate funds are maintained in the Borrower’s Designated Bank Account to allow for the EPI amount and/or Outstanding Dues to be deducted using the e-NACH mandate. The Borrower agrees and acknowledges that any e-NACH bounce, rejection for inadequate funds or failure to pay the EPI when due may result in an Event of Default and shall attract the consequences of an Event of Default in accordance with this Agreement.

5.4 Borrower acknowledgements in relation to repayments: The Borrower acknowledges that:

(a) Strict compliance by the Borrower with the repayment schedule is an essential condition for the grant of the Loan;

(b) No notice, reminder or intimation shall be given by the Lenders to the Borrower prior to the presentation of the e-NACH mandate;

(c) Non-presentation of the e-NACH mandate by the Lenders due to any reason whatsoever will not affect the liability of the Borrower to repay the Loan; and

(d) Without prejudice to any other rights or remedies the Lenders may have under this Agreement and / or under the Applicable Law, the Borrower shall be liable to pay a flat charge as stated in the Schedule 1 in case of dishonour of the Instruments on the first presentation. The levy of such charge upon dishonouring of the Instruments is without prejudice to the rights of Lenders under the Payment and Settlement Systems Act, 2007 as amended and as in force for the time being, and without prejudice to the other rights, which the Lenders have under this Agreement or under Applicable Law or equity;

5.5 Pre-payments / Foreclosures: The Borrower may also: (i) pay an EPI in advance; or (ii) foreclose the Loan by paying the entire Outstanding Dues – by making the necessary payment to the Lenders using the CRED App. In such cases pre-payment charges / foreclosure charges (if any) set out in Schedule 1 shall be payable by the Borrower. It is hereby clarified that in case of any prepayment by the Borrower, the Borrower shall at all times repay the Outstanding Dues along with applicable interest up to the date of prepayment in addition to the pre-payment charges / foreclosure charges (if any).

5.6 Appropriation of Payments: The Lenders shall have a right to appropriate any payments due and payable under this Agreement and made by the Borrower towards dues in the following order: (a) firstly, towards interest; (b) secondly, towards principal amount(s); (c) thirdly, towards late payment interest; and (d) fourthly towards, other charges, expenses or other Outstanding Dues payable in relation to the Loan, at their sole discretion. 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 late payment interest and (d) fourthly, towards any other charges expenses or other Outstanding Dues payable in relation to the Loan, at their sole discretion. Notwithstanding anything stated herein, the Lenders retain the right to modify the manner of appropriation of the payments received from the Borrower at any time at their sole discretion and in the manner they deem fit. Notwithstanding any such appropriation, the Borrower shall continue to remain liable to Lenders for all the Outstanding Dues until the Final Settlement Date.

6. COLLECTIONS

6.1 The Lenders have appointed CRED as the lending service provider to assist the Lenders with debt counselling and recovery.

6.2 Parties agree and acknowledge that CRED and / or the Lenders may appoint subcontractors who may reach out to the Borrower through various means to discuss repayment of the Loan (including but not limited to telephone calls, SMS, WhatsApp chats, physical visits and email) notwithstanding any registration with “National Do Not Call Registry” (the “NDNC Registry”) as laid down by Telecom Regulatory Authority of India. The agents who reach out shall comply with the code of conduct specified by the Lenders and / or CRED.

6.3 The service providers who provide collections related services shall be as mentioned in the KFS in Schedule I of this Agreement and the Lenders shall ensure that they comply with the code of conduct of the Lenders and the Applicable Law.

7. EVENT OF DEFAULTS

7.1 An Event of Default shall be deemed to have occurred if any one of the below events or a combination of them occurs:

(a) The Borrower fails to repay any particular EPI, in accordance with the Repayment Schedule set out in Schedule 2 of this Agreement, whether demanded or not, when it is due;

(b) There has been a dishonour of e-NACH mandate or any instrument provided by the Borrower in relation to payment of any EPI or any Outstanding Dues in relation to the Loan;

(c) The Borrower dies (and the insurance availed by him/her does not make good the dues outstanding to the Lenders) or takes any steps or any steps are taken with a view to his being made insolvent or files for bankruptcy or acts with a view to the appointment of a receiver, trustee or similar officer for his/ her assets, or is declared insolvent or bankrupt under Applicable Laws;

(d) Regardless of the reason thereof, Borrower instructs its bankers for stopping payment of the e-NACH mandate or any instrument provided by the Borrower in relation to payment of any EPI or any Outstanding Dues in relation to the Loan;

(e) Any information given or representations made by the Borrower to the Lenders under this Agreement or any other documents submitted by the Borrower is found to be inaccurate or misleading and/or there is misrepresentation and suppression of material records/facts by the Borrower, or the Borrower fails to provide any information requested by any Lender as set out in Clause 17.6 below;

(f) 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 Lenders;

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

(h) The Borrower is declared to be a wilful defaulter;

(i) The Borrower becomes a sanctioned person under sanctions imposed by any government of any nation or by a multilateral body such as the EU or the UNSC;

(j) The Borrower fails to discharge any indebtedness with any person (including the Lenders) which has become due and payable, or the Borrower is deemed for the purposes of any Applicable Law to be unable to pay his/her debts as they fall due or the Borrower admits in writing to be unable to pay his/her debts as they fall due, or the Borrower begins negotiations with any creditor for the rescheduling or restructuring of any of the Borrower’s indebtedness;

(k) The providing of Loan is no longer in accordance with the Applicable Law, or the Agreement is not effective in accordance with its terms or is alleged by the Borrower to be ineffective in accordance with its terms for any other reason or it is or it becomes unlawful for the Borrower to perform any of its obligations under the Loan documents;

(l) The Borrower fails to perform any of the obligations or terms or conditions or covenants applicable in relation to the Loan including a breach of the provisions under this Agreement; or

(m) The Borrower utilizes the Loan towards any purpose or activity other than for personal purposes.

7.2 The Borrower shall promptly notify the Lenders in writing upon becoming aware of any of the Events of Default and the steps, if any, being taken to remedy it. The Lenders may in their sole discretion determine whether or not an Event of Default has occurred, and such decision of the Lenders shall be final and binding upon the Borrower. A certificate / notice in writing signed by an officer of any of the Lenders stating the amount at any particular time due shall be conclusive evidence against the Borrower of any Outstanding Dues payable under the Agreement.

7.3 In the event of occurrence of any Event of Default, the Lenders may, in their discretion, without requiring any consent or confirmation from the Borrower and without prejudice to any other rights available, and without any liability, take one or more of the following actions including but, not limited to:

(a) recall the Loan and declare the Outstanding Dues immediately due and payable by the Borrower;

(b) present and appropriate the proceeds of the e-NACH mandate given by the Borrower to the Lenders under this Agreement, for all such times that the Outstanding Dues are repaid;

(c) require the Borrower to pay liquidated damages equal to all unpaid EPIs which in the absence of an Event of Default would have been payable by the Borrower for the full term hereof;

(d) exercise their right of set-off against any monies due to the Lenders from the Borrower and to combine all the accounts of the Borrower held with the Lenders to recover the Outstanding Dues from the Borrower, in the manner more specifically described in Clause 11 of this Agreement;

(e) publish the name of the Borrower as defaulter in such form and manner and through such medium as the Lenders may in their sole discretion may think fit and also inform other lenders of the Borrower about such default by the Borrower and to make disclosure of the details pertaining to the Borrower and the default to any credit information companies and any statutory and/or regulatory authority and/or person authorized by such authority, RBI or otherwise under any applicable laws or regulation. Lenders are not liable to rescind such information once shared;

(f) 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; and

(g) seek indemnification in respect of all legal and other costs and expenses resulting from the defaults by the Borrower or the exercise of remedies by the Lenders.

8. BORROWER REPRESENTATIONS AND WARRANTIES

8.1 The Borrower hereby makes the following representations and warranties and states that the same shall remain true, correct, valid and subsisting at all times in every respect as of the date of this Agreement, and as on each day until the Final Settlement Date:

(a) The Borrower has adequate legal capacity to enter into and execute this Agreement. The Borrower is not restricted in any manner or prevented in any manner under any Applicable Laws or otherwise from executing and undertaking the obligations as provided in this Agreement. Upon execution, this Agreement shall be a valid legally binding commitment of the Borrower enforceable against the Borrower on the terms set out herein.

(b) The Borrower is solvent and its obligation to pay the total Outstanding Dues and all other charges and monies payable under or pursuant to this Agreement, shall be absolute and unconditional.

(c) The Borrower agrees that in case of any update in the KYC documents submitted at the time of obtaining the Loan, the Borrower shall submit a copy of such updated document to the Lenders within 30 (thirty) days of the update by writing to support@cred.club, support@newtap.in, or to customercare@ltfs.com, in order to comply with regulatory requirements, including, Prevention of Money Laundering Act, 2002 and its rules, on an ongoing basis.

(d) There are no suits, actions or claims pending or are likely to be filed or taken (whether civil or criminal or otherwise) against the Borrower of any nature whatsoever which shall make it illegal for the Borrower to avail the Loan or otherwise effectively perform its obligations under this Agreement.

(e) There is no Event of Default, subsisting hereunder or under any other agreement binding the Borrower including any payment or other contractual obligations or otherwise, whether existing or expected to arise pursuant to the availing of Loan. There are no circumstances subsisting at the time of execution of this Agreement which are likely to result in the occurrence of an Event of Default during the term of the Loan.

(f) Borrower’s household income, that is to say, the annual income of the Borrower’s family unit, i.e., husband, wife, and unmarried children, is more than INR 3,00,000 (Indian Rupees Three Lakhs Only) and therefore the Borrower’s borrowing of the Loan does not qualify to be a microfinance loan under the Reserve Bank of India (Regulatory Framework for Microfinance Loans) Directions, 2022.

(g) The Borrower understands English, and the Borrower has fully understood and accepted the terms of: (i) this Agreement; (ii) terms and conditions and privacy policy of CRED available at https://cred.club/terms and https://cred.club/legal/privacy respectively; (iii) the Key Facts Statement; (iv) the sanction letter, and (v) any other information displayed during the loan journey on the CRED App.

(h) The Borrower agrees to use the Loan Amount only for the specified purpose set out in Schedule 1 below, and shall not use the same for any other purposes including investing in the capital market or for any speculative purposes, fraudulent/ unlawful purposes purposes. The Lenders shall have the right to recall the Loan if the funds are used for any of the prohibited purposes specified above and/or for any other reasons mutually agreed upon between the Lenders. Neither the Borrower, nor any person acting on his/her behalf, has been engaged in: (i) corrupt practices, fraudulent practices, collusive practices or coercive practices; (ii) money laundering or acted in breach of any Applicable Laws relating to money laundering; or (iii) the financing of terrorism.

9. COVENANTS / UNDERTAKINGS OF THE BORROWER

9.1 The Borrower agrees and undertakes that the Borrower shall:

(a) utilize the entire Loan solely for personal purposes and not utilize any part of the monies so borrowed for any illegal purpose, or towards immoral / unethical practices;

(b) promptly notify the Lenders of any event or circumstances, which may delay compliance with any terms hereof or may result in an Event of Default;

(d) indemnify and hold harmless, and agrees to keep indemnified and hold harmless the Lenders, from time to time and at all times hereafter, against any and all claims, losses, costs, damages, liabilities, losses and expenses (including all legal costs and attorney fees) that may be incurred by the Lenders on account of any act or default on the part of the Borrower in respect of the Loan, the non-performance of or non-observance of any of the terms and conditions stipulated under this Agreement or due to occurrence of an Event of Default or a potential Event of Default in relation to the Loan and/or for the recovery of the Outstanding Dues under this Agreement;

(e) immediately intimate CRED and the Lenders in respect of any change in the contact details, residential, or any other details as intimated to CRED or the Lenders; Borrower further agrees and acknowledges that in the event the Borrower is not contactable at the registered contact details and/or address, then the Lenders and/or CRED shall be at liberty (either directly or through subcontractors) to carry out skip tracing of the Borrower in order to determine the Borrower’s whereabouts and contact details;

(f) not, without the prior, specific, and express written consent (which may be conditional or otherwise) of both the Lenders, close the Designated Bank Account. In the event the Designated Bank Account is being closed, the Borrower must (i) notify the Lenders prior to such closure, by writing to support@cred.club, support@newtap.in, or to customercare@ltfs.com, and (ii) substitute all repayment instructions in favour of a new bank account as per the instructions and to the satisfaction of the Lenders, so that the Borrower’s repayment schedule under this Agreement is not affected;

(g) not assign, transfer, or novate any or all of its rights and/or obligations under this Agreement in favour of any person;

(h) not appoint, engage or authorize any third party to deal with the Lenders or CRED and/or any other lending service provider in respect of the Loan under this Agreement; and

(i) if there are any changes in the particulars and information given by Borrower while availing the Loan facility, Borrower shall within 30 (thirty) days from the date of any such change in the particulars and information shall disclose the details of such changes to the Lenders without withholding the same.

9.2 The Borrower represents that the Borrower is not a politically exposed person (PEP) and that the Know Your Customer details provided by the Borrower are correct. The Borrower further agrees and acknowledges that the Borrower shall inform both CRED and the Lenders in the event of any change in its PEP status or change in the details provided as part of Know Your Customer checks.

9.3 The Borrower expressly understands that the Lenders and/or CRED shall be under no obligation to entertain any third party request regarding any discussion, negotiation or settlement of the Loan.

9.4 The Borrower agrees and acknowledges that they have read and understood the terms of Schedule 3 and agrees to abide by the same.

9.5 The Borrower further agrees and acknowledges that by applying for the Loan:

(a) the Loan (and its terms as provided in the sanction letter and hereunder) is being offered by the Lenders based on the income and segment and other data of the Borrower categorised as per the Lenders’ internal policies, and using the data that the Borrower had expressly and irrevocably authorized the Lenders and CRED to collect, store, share, and obtain as per the terms and conditions and the privacy policy of CRED (available on the CRED App and the CRED website).

(b) the Loan is being provided pursuant to a co-lending arrangement between the Lenders, and the Lenders have collaborated under this co-lending arrangement to provide a blended rate of interest to the Borrower for this Loan.

(c) the Borrower consents that the Lenders may monitor the performance of their accounts/portfolio on a periodic basis and secure servicing reports from CRED or any other collection and service agent in relation to the Loan.

10. ASSIGNMENT / SECURITISATION

10.1 The Borrower expressly recognizes and accepts that each Lender shall be absolutely entitled and have full power and authority to sell, assign, hypothecate, encumber (by way of creating a charge over receivables or otherwise) or transfer in any manner, in whole or in part, and in such manner and on such terms as such Lender may decide (including reserving a right to the Lenders to retain its power hereunder to proceed against the Borrower on behalf of the purchaser, assignee or transferee) any or all rights, benefits, or obligations under this Agreement (including any Outstanding Dues of the Borrower), to any person of such Lender’s choice (including the other Lender) without reference to or without written intimation to the Borrower.

10.2 Any such action and any such sale, assignment or transfer shall not absolve the Borrowers’ liabilities under this Agreement and shall conclusively bind the Borrower to accept such transferee as creditor exclusively or as a joint creditor with one or both of the Lenders, or as creditor exclusively with right to the Lenders to continue to exercise all powers hereunder on behalf of such third party and to pay over such Outstanding Dues and dues to such third party and / or to the Lenders as the Lenders may direct. The Borrower acknowledges and undertakes to pay to such third party all amounts due hereunder as required. The third party shall have authority of the Lenders to collect the due amounts.

10.3 The Borrower shall not be entitled to directly or indirectly assign any of its rights, obligations, or benefits under this Agreement to any person.

11. SET-OFF AND LIEN

11.1 Notwithstanding anything contained in this Agreement, the Lenders shall have a lien, irrespective of any other lien or charge over the deposits of any kind and nature, or balances lying in any account maintained by the Borrower with the Lenders (if any) and a right of set off against any monies due to the Lenders from the Borrower and to combine all accounts of the Borrower held with the Lenders for recovery of the Lenders’ dues hereunder.

11.2 It is hereby agreed and understood by the Borrower that, in the event of occurrence of an Event of Default or the Borrower defaulting in payment of the EPIs / charges / fees / any other amounts due, without prejudice to the right of termination, the Lenders shall have the right to set-off the amount in the Borrower’s account that it may be holding with the Lenders or any amount due from the Lenders to the Borrower, with the amount in respect of which the default has been committed under this Agreement.

11.3 The Borrower herein, expressly agrees that, if the Borrower has availed any other loan facility from Lender 1 and/or Lender 2, for which any property, moveable or immoveable has been provided or extended as security by the Borrower for such other facility, the enforcement of any such security by the Lender 1 and/or Lender 2 by way of sale, transfer or appropriation, upon default by the Borrower of such other loan facility shall accrue to such Lender 1 and/or Lender 2, and the Lender 1 and/or Lender 2 shall have the right to appropriate all amounts collected from the sale, transfer or appropriation, which are in excess of the outstanding dues of such other loan facility, towards the legitimate claims of such Lender 1 and/or Lender 2 in respect of their Outstanding Dues under the Loan given under this Agreement, in accordance with Applicable Laws.

12. Consents

12.1 The Borrower hereby expressly and irrevocably provides its consent to authorize the Lenders, CRED, their respective employees, representatives, sub-contractors, and/or their agents: (i) to collect, store, share, obtain (including if necessary through agencies providing skip tracing services) and authenticate any aspect of the information and details of the Borrower, including personal information, KYC, repayment history, etc. either directly or through any of the authorized agencies, and disclosure such information to its group companies, partners, banks, financial institutions, credit bureaus, statutory authorities, regulatory bodies, agents, contractors, service providers, Lenders, etc. and to use / process such information in the manner that may be required by the Lenders and / or CRED including for the purposes of this Loan, customer verification, personalization of products or services, credit rating, data enrichment, marketing or promotion of the Lenders’ or related products, (ii) to process all information provided by the Borrower as part of the application for the Loan, as well as the information in relation to the terms of the Loan, the manner of its repayment, the Borrower’s personal information, including when obtained via KYC/e-KYC process, images and videos, even after the repayment of the Loan or the termination of this Agreement in any other manner and (iii) 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 any registration of the Borrower with the "National Do No Call Registry" (NDNC) or “Do Not Disturb” (DNC)/ service, with respect to the Lenders, CRED, their respective employees, representatives, sub-contractors, and/or its agents.

12.2 The Borrower further declares that the information and data furnished/ to be furnished by the Borrower to the Lenders is true and correct, in the loan application journey and anywhere else where information is provided.

12.3 In the event of the Borrower committing a default in the repayment of Outstanding Dues on the due dates, the Borrower acknowledges and consents that each Lender shall have an unqualified right to disclose the name of the Borrower to RBI, CIBIL and any other agency authorised in this behalf by RBI. The Borrower gives its consent to each Lender and/or RBI and/ or CIBIL to publish their name as defaulters in such manner and through such medium as the Lenders/RBI and/or CIBIL in their absolute discretion may think fit.

12.4 The aforesaid right shall be available to the Lenders in addition to and not in derogation of any other rights available under the Agreement.

12.5 The Borrower further agrees and understands that:

a. CIBIL and any other agency so authorized may use and/or process the said information and data disclosed by the Lenders in the manner as deemed fit by them; and

b. CIBIL and any other agency so authorised may furnish for consideration the processed information and data or products thereof prepared by them, to the Lenders/financial institutions and other credit grantors or registered users, as may be specified by RBI in this behalf.

12.6 The Borrower agrees and understands that each Lender may also disclose any information/documents relating to the Borrower to any third party including such Lender’s Affiliates for promotional purposes or any other purpose as Lenders may deem fit.

13. NOTICES

13.1 All correspondence shall be addressed to the Lenders at their addresses mentioned in the description of parties appearing in the preamble to this Agreement.

13.2 All communications/notices/letters/document/statements between the Lenders and the Borrower shall be in English, which is a language understood by the Borrower. Any notice, approvals, instructions, demand and other communications given or made by the Lenders (or CRED on behalf of the Lenders) shall be deemed to be duly given and served by them if sent by post, courier, registered post, electronic mail, personal delivery, short message service (SMS), other digital messaging services including WhatsApp, Facebook Messenger or by pre-paid registered mail address, courier to the Borrower’s address, phone number, or email as given Schedule 1 (or at the modified address on which the Borrower obtains the Lenders’ acknowledgement as hereinafter mentioned) and such notice and service shall be deemed to take effect on the 3rd (third) day following the date of posting thereof in case of normal post, courier, registered post, at the time of delivery if given by personal delivery, upon sending the electronic mail, SMS or other digital messaging services including WhatsApp or Facebook Messenger if given by electronic mail, SMS or other digital messaging services. Any notice or other communication to be sent to the Borrower shall be sent to/ made through the mailing address, e-mail ID or phone number identified in Schedule 1 hereunder. The Borrower undertakes to keep the Lenders informed at all times in writing of any change within 7 (seven) days of such change in the mailing address, email ID, phone and mobile number as provided in Schedule 1 and to obtain Lenders’ written acknowledgement on the intimation given to Lenders for any such change.

13.3 Subject to Clause 17.1., the Parties agree that the Lenders 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 Lenders 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.

14. GRIEVANCES AND COMPLAINTS

14.1 The Lenders will endeavour to prevent any inappropriate staff behaviour and any complaints in respect thereof shall be addressed within 30 (thirty) days in accordance with the grievance redressal mechanism constituted by the Lenders and CRED.

14.2 The Lenders and CRED have designated a grievance redressal officer to redress the genuine grievances of the Borrower. The details of the grievance redressal mechanism and the grievance redressal officer have been provided to the Borrower in the Key Facts Statement.

14.3 In case of any grievances, the Borrower may reach out to CRED at the details set out in the Key Facts Statement. Subject to Applicable Laws, the Lenders hereby authorize CRED to address grievances of any Borrower who approaches them hereunder, and the Lenders agree to provide all necessary support and details to CRED to address such grievances. The Borrower understands that if he reaches out to Lender 1 above, Lender 1 may, at its discretion, decide to direct the Borrower to CRED or to Lender 2 for grievance redressal.

15. GOVERNING LAW, JURISDICTION, AND DISPUTE RESOLUTION

15.1 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 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) Webnyay Private Limited, having its office at 1241, Sector 18, Chandigarh - 160018; Website: https://www.webnyay.ai/ Email: arbitration@webnyay.ai;

(b) 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;

(c) SAMA, having its office at W-901, Rohan Jharokha 2, Yemalur, Near HAL Airport, Bangalore, 560038, Karnataka; Website: https://www.sama.live/; Email: pranjal@sama.live;

(d) Any arbitral institution designated under the provisions of the Arbitration and Conciliation Act, 1996 (“the Arbitration Act”)

15.2 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.

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

15.4 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 virtually 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.

15.5 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.

15.6 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.

15.7 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.

15.8 Subject to the foregoing, the courts at Kolkata, West Bengal 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.

15.9 The cost of arbitration shall be borne by the Party against whom the award shall be passed.

16. TERM AND TERMINATION

16.1 This Agreement shall come into effect from the date of this Agreement and shall terminate only upon the Borrower making full repayment/ payment of all Outstanding Dues in relation to the Loan to the Lenders in accordance with this Agreement.

16.2 The Borrower is not permitted to terminate this Agreement until he/she has paid all Outstanding Dues due and payable under this Agreement.

16.3 Consequence of Termination: Upon termination of the Agreement by the Lenders, all Outstanding Dues due and payable by the Borrower to the Lenders shall be payable immediately.

17. MISCELLANEOUS

17.1 Amendments: No modification or amendment of the terms of this Agreement (except to the revision in Rate of Interest as provided under Schedule 1 and also alteration or re-scheduling of the EPIs as provided under Schedule 1 herein) and no waiver of any of the terms or conditions hereof shall be valid or binding unless made in writing and duly executed by all Parties hereto, which modification or amendment shall form an integral part of this Agreement.

17.2 Partial Invalidity: If any provision of this Agreement or the application thereof to any person or circumstance shall be invalid or unenforceable to any extent for any reason including by reason of any law or regulation or government policy, the remainder of this Agreement and the application of such provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby, and each provision of the Agreement shall be valid and enforceable to the fullest extent permitted by Applicable Laws. Any invalid or unenforceable provision of this Agreement shall be replacement with a provision, which is valid and enforceable and most nearly reflects the original intent of the unenforceable provision, in a mutually agreeable manner.

17.3 Cumulative Rights: All remedies of Lenders under this Agreement whether provided herein or conferred by statue, civil law, common law, custom, trade, or usage are cumulative and not alternative and be enforced successively or concurrently.

17.4 Waiver: Any delay in exercising or omission to exercise any right, power or remedy accruing to the Lenders under this Agreement or any other agreement or document shall not impair any right, power or remedy and shall not be construed to be a waiver thereof or any acquiescence in any default, not shall the action or inaction of the Lenders in respect of any default, affect or impair any right, power or remedy of Lenders in respect of any other default.

17.5 Costs and expenses: The Borrower shall promptly on demand pay to the Lenders the amount of all the costs and expenses (legal or otherwise) incurred by the Lenders in connection with the enforcement or preservation of any rights of the Lenders under the Loan documents.

17.6 Information: The Borrower undertakes to furnish to the Lenders, any such information called for by the Lenders 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 Lenders to consider such non-furnishing of information to be an Event of Default on part of the Borrower which shall be dealt with as per Clause 7 of this Agreement.

17.7 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 as required under Applicable Laws.

This Agreement and all schedules thereto have been executed / accepted by the below mentioned Parties:

Borrower	Digitally accepted by [ ] on [ ] Consent Mode OTP sent to [ ] OTP entered on CRED App at [ ] Device used for furnishing OTP [ ] Consent indicated via OTP [ ]
Newtap Finance Private Limited	Mr. Vandan Suba (Authorised Signatory)
L&T Finance Limited (formerly known as L&T Finance Holdings Limited)	Atul Kanak (Head - Retail Business Operations) (Authorised Signatory)

SCHEDULE 1

TERMS OF THE LOAN

	Purpose	For personal requirements.
	Date
	Borrower Details: (Name, Gender, Mobile Number, Address)	Name: Gender: Mobile Number and WhatsApp Number: Email : Permanent Address: Correspondence Address:
	KYC Details
	Lender 1’s Details: Name & Registered Address:	L&T Finance Limited (formerly known as L&T Finance Holdings Limited) Registered Office: Brindavan, Plot No. 177, C.S.T Road, Kalina, Santacruz (East), Mumbai – 400098, Maharashtra, India
	Lender 2’s Details: Name & Registered Address:	Newtap Finance Private Limited (previously known as Parfait Finance and Investments Private Limited) Registered Office: Office 03A 102-B, WeWork (Enam Sambhav), C-20, G Block Rd, G Block BKC, Bandra Kurla Complex, Bandra East, Mumbai, Maharashtra, India – 400051
	CRED Details – Registered address and support email	Dreamplug Technologies Private Limited Corporate Office: CRED, No. 769 and 770, 100 Feet Road, 12th Main, HAL 2nd Stage, Indiranagar, Bangalore 560038. Registered office: 404 Uphar II CHS Ltd., Plot No.5, BHD Sanjeeva ENCL, 7 Bunglows, Near Juhu Circle, Mumbai, Maharashtra, India - 400061
	Loan Amount (in figures)
	Loan Amount (in word)
	Net Disbursed Amount
	Loan Account Number (LAN)
	Annualized Interest Rate*
	Annualized Percentage Rate
The Borrower shall be entitled to pay the EPI in advance; however, the Borrower shall not be liable to pay any interest on any such amounts paid in advance. Further, the Borrower agrees that in the event he chooses to make the payment of any amount over and above the EPIs payable, such excess amount shall be appropriated by the Lenders towards any future/ charges payable by the Borrower during the tenor of the Loan.
	Penal Charges	NIL
	Insurance premium (collected on behalf of the insurer by Lender 2)
	Cross-sell Charges
	Payment frequency	Monthly
	Tenure
	EPI amount
	Installments/Frequency of Repayment	Equated Monthly Repayments (EMI)
	Mode of Repayment	e-mandate selection
	Processing Fee / Charges
	NACH / e-NACH Bounce Charges

1. Notwithstanding any other provisions of this Agreement and any rights available to the Lenders under the applicable laws, the providing of the Loan by the Lenders to the Borrower is subject to Lenders 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”), classification and notification of the Loan as an overdue account under day-end processes on the due date as per Lenders’ internal processes (to the extent such policy does not conflict with any applicable guidelines, rules or regulations prescribed by the RBI).

2. 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 Lenders. The SMA or NPA classification date and asset classification status of the Loan shall be as on the date of the Lenders’ Day-end process for the said Loan.

3. Illustration with respect to SMA/NPA Classification:

If the Repayment Date with respect to the Facility falls on March 31st, and the relevant Outstanding Dues payable on such date is not received in full on such Repayment Date, before the Lenders runs the day-end process with respect to classification of their borrower accounts for the Repayment Date, the date of overdue shall be March 31st.
In the event of the Facility continues to remain overdue, then the loan account shall be tagged as SMA-1 upon running day-end process on the 30th day from March 31st i.e. upon completion of 30 days of the Facility being continuously overdue. Accordingly, the date of SMA-1 classification for that account shall be 30th April.
Similarly, if the Facility continues to remain overdue after it being classified as SMA-1, it shall be tagged as SMA-2 upon running day-end process on the 60th day from March 31st i.e. on 30th May.
In the event of the Facility continuing to remain overdue further, it shall become classified as NPA upon running day-end process on the 90th day from March 31st i.e. on 29th June.

SCHEDULE 2

KEY FACTS STATEMENT

Part 1 (Interest rate and fees/charges)

Date: [•]
Applicant Name : [•]
Loan Amount including Fee/Charges (in Rupees) : [•]
Name of Lenders: Newtap Finance Private Limited (“Newtap”/ “Lender 2”) and L&T Finance Limited (“L&T” / “Lender 1”)

1	Loan proposal/ account No (Updated post disbursement)				Type of Loan	Personal Loan
2	Sanctioned Loan amount (in Rupees)
3	Disbursal schedule (i) Disbursement in stages or 100% upfront. (ii) If it is stage wise, mention the clause of loan agreement having relevant details			Net Disbursed Amount of Rs[•] (100% upfront)
4	Loan term (year/months/days)			[•] months
5	Instalment details
Type of instalments	Number of EPIs	EPI (₹)		Commencement of repayment, post sanction
[•]	[•]	[•]		[First EMI Date]
6	Interest rate (%) and type (fixed or floating or hybrid)			[•] Annualized (reducing rate) and Fixed
7	Additional Information in case of Floating rate of interest :
Reference Benchmark	Benchmark rate (%) (B)	Spread (%) (S)	Reset Periodicity		Impact of change in the reference benchmark (for 25 bps change in 'R')
			B	S	EPI (₹)	No. of EPIs
NA	NA	NA	NA	NA	NA	NA
8	Fee/ Charges
		Payable to the RE (A)		Payable to a third party through RE (B)
		One-time/ Recurring	Amount (in ₹) or Percentage (%) as applicable (inc GST)	One-time/ Recurring	Amount (in ₹) or Percentage (%) as applicable (inc GST)
(i)	Processing fees	One - time	[•]	NA	NA
(ii)	Insurance charges	NA	NA	One - time	[•]
(iii)	Valuation fees	NA	NA	NA	NA
(iv)	Any other (please specify)	NA	NA	NA	NA
9	Annual Percentage Rate (APR) (%)			[•]
9	Details of Contingent Charges (in ₹ or %, as applicable)
(i)	Penal charges, if any, in case of delayed payment					NA
(ii)	Other penal charges, if any					NA
(iii)	Foreclosure charges, if applicable					NA
(iv)	Charges for switching of loans from floating to fixed rate and vice versa					NA
(v)	Any other charges (please specify)					NA

Part 2 (Other qualitative information)

1	Clause of Loan agreement relating to engagement of recovery agents		Clause 6.2
2	Clause of Loan which details grievance redressal mechanism		Clause 14
3	Phone number and email ID of the nodal grievance redressal officer		The details of the Nodal Grievance Redressal Officers of L&T Finance are as follows (or as updated from time to time on the website as aforesaid): Name of the Grievance Redressal Officer: Vinod Varadan 1. Address: L&T Finance, Brindavan, Plot no. 177, CST Road, Kalina, Santacruz (East), 2. Mumbai - 400 098, Maharashtra, India (+91 22 6212 5000) 3. Email: vinodvaradan@ltfs.com The details of the Nodal Grievance Redressal Officers of Newtap Finance are as follows (or as updated from time to time on the website as aforesaid): 1. Name of the Grievance Redressal Officer: Vandan Suba 2. Address: Office 03A 102-B, WeWork (Enam Sambhav), C-20, G Block Rd, G Block BKC, Bandra Kurla Complex, Bandra East, Mumbai, Maharashtra, India – 400051 3. Email: gro@newtap.in The details of the Nodal Grievance Redressal Officers of CRED are as follows (or as updated from time to time on the website as aforesaid): 1. Name of the Grievance Redressal Officer/ Principal Officer: Atul Kumar Patro 2. Address: Attn: Grievance Officer, CRED, No. 769 and 770, 100 Feet Road, 12th Main, HAL 2nd Stage, Indiranagar, Bengaluru, Karnataka, India - 560038. 3. Contact: Grievance Redressal Form https://app.cred.club/k63y/8lqxt1uy)
4	Whether the loan is, or in future maybe, subject to transfer to other REs or securitisation (Yes/ No)		The RE may, in the future, securitize or transfer the loans granted to the Borrower as per extant guidelines and the Borrower has agreed to the same as per clause 10 of the Loan Agreement
5	In case of lending under collaborative lending arrangements (e.g., co-lending/ outsourcing), following additional details may be furnished: Co-Lending
Name of the originating RE, along with its funding proportion		Name of the partner RE, along with its funding proportion		Blended rate of interest
Newtap Finance Private Limited (“Newtap”) with 10% funding proportion (Lender 2)		L&T Finance Limited (“L&T”) with 90% funding proportion (Lender 1)		[•]
6	In case of digital loans, following specific disclosures may be furnished:
	(i) Cooling off/look-up period, in terms of RE’s board approved policy, during which borrower shall not be charged any penalty on prepayment of loan		3 days
	(ii) Details of LSP acting as recovery agent and authorized to approach the borrower		Dreamplug Technologies Private Limited and its recovery agents (Please refer CRED’s privacy policy for a list of its empaneled recovery agents here) Newtap Finance Private Limited’s recovery agents comprises of Dreamplug Technologies Private Limited & any of their agents as listed above The details of L&T Finance Limited recovery agents will be communicated to customer prior to recovery (including as listed above)

Recovery Mechanism:

The Borrower may note that CRED (Dreamplug Technologies Private Limited) shall be the lending services provider for the Lenders and the CRED App shall be the digital lending app for all purposes.
The collection and recovery activities shall be carried on by the Lenders, the lending service provider in accordance with the collection code of conduct prescribed by the Lenders.
The Borrower may note that the collection agencies will reach out on behalf of the lending service provider and / or the Lenders at the registered contact number and/or address of the Borrower.
The Borrower shall note that the account shall be classified as Non-Performing Asset (NPA) as per the extant RBI Circulars/Regulations when the payment of Loan instalment (principal and/or interest) remains overdue for more than 90 days, that is, the account will be marked as NPA on the 91st day of continuous default from the original due date. To further clarify, an illustrative example of the way any account shall be classified as NPA is provided above in the loan agreement.

Process to handle customer complaints/grievances:

Customers who wish to provide feedback or send in their complaints may use the following channels :

Contact CRED Support through the chat-bot on the CRED App.
Contact CRED through the Grievance Redressal Form available at https://app.cred.club/k63y/8lqxt1uy .Please note that the Lenders have authorized CRED to handle the Borrower’s grievances on their behalf. Lender 1 may, at its discretion, direct the Borrower to CRED to resolve grievances.
Email Lender 2 at support@newtap.in. Please note that Lender 1 has authorized Lender 2 to handle the Borrower's grievances on their behalf. Further, Lender 1 may, at its discretion, direct the Borrower to Lender 2 to resolve grievances.
Email Lender 1 at customercare@ltfs.com or call 18002680000 (Between 9 am to 6 pm only on all days except national holidays. Please note that Lender 1 has authorized Lender 2 to handle the Borrower's grievances on their behalf. Further, Lender 1 may, at its discretion, direct the Borrower to Lender 2 to resolve grievances.
In case the complaint is not resolved within the given time or if he/she is not satisfied with the solution provided by the Lenders or Lending Service Provider within 30 days of their receiving the complaint, the Borrower can approach the Nodal Grievance Redressal Officer of any Party. The name and contact of such officer for each Party is as provided below. The details are also provided in the respective Party’s websites: https://www.ltfs.com/grievance-redressal (for Lender 1), www.newtap.in/grievanceredressal (for the Lender 2) and http://cred.club (for CRED).

Illustration for computation of APR

Sr. No.	Parameter	Details
1	Sanctioned Loan amount (in Rupees) ( Sl no. 2 of the KFS template – Part 1)	20,000
2	Loan Term (in years/ months/ days) (Sl No.4 of the KFS template – Part 1)
a)	No. of instalments for payment of principal, in case of non- equated periodic loans	-
b)	Type of EPI Amount of each EPI (in Rupees) and nos. of EPIs (e.g., no. of EMIs in case of monthly instalments) (Sl No. 5 of the KFS template – Part 1)	Monthly 970 24
c)	No. of instalments for payment of capitalized interest, if any	-
d)	Commencement of repayments, post sanction (Sl No. 5 of the KFS template – Part 1)	30 days
3	Interest rate type (fixed or floating or hybrid) (Sl No. 6 of the KFS template – Part 1)	Fixed
4	Rate of Interest (Sl No. 6 of the KFS template – Part 1)	15 %
5	Total Interest Amount to be charged during the entire tenor of the loan as per the rate prevailing on sanction date (in Rupees)	3,274
6	Fee/ Charges payable (in Rupees) (inc GST)	400
A	Payable to the RE (Sl No.8A of the KFS template-Part 1) (inc GST)	240
B	Payable to third-party routed through RE (Sl No.8B of the KFS template – Part 1) (inc GST)	160
7	Net disbursed amount (1-6) (in Rupees)	19,600
8	Total amount to be paid by the borrower (sum of 1 and 5) (in Rupees)	23,274
9	Annual Percentage rate- Effective annualized interest rate (in percentage)10 (Sl No.9 of the KFS template-Part 1)	17.07 %
10	Schedule of disbursement as per terms and conditions	One-time disbursement
11	Due date of payment of instalment and interest	[First EMI Date] and monthly thereafter

Detailed Repayment Charges
Instalment no	Outstanding Principal (In INR)	Principal (In INR)	Interest (In INR)	Instalment (In INR)
1	[•]	[•]	[•]	[•]
2	[•]	[•]	[•]	[•]
3	[•]	[•]	[•]	[•]
4	[•]	[•]	[•]	[•]
5	[•]	[•]	[•]	[•]
6	[•]	[•]	[•]	[•]
7	[•]	[•]	[•]	[•]
8	[•]	[•]	[•]	[•]
9	[•]	[•]	[•]	[•]
10	[•]	[•]	[•]	[•]
11	[•]	[•]	[•]	[•]
12	[•]	[•]	[•]	[•]
13	[•]	[•]	[•]	[•]
14	[•]	[•]	[•]	[•]
15	[•]	[•]	[•]	[•]
16	[•]	[•]	[•]	[•]

This repayment schedule includes interest accrued from the first date of disbursement till the first EPI payment date.

SCHEDULE 3

RBI ILLUSTRATIONS FOR NPAs

1. The Borrower hereby agrees and acknowledges that the Facility shall be subject to the guidelines issued by Reserve Bank of India (“RBI”), from time to time, and that in case of any failure/default/delay in payment/ repayment/ reimbursement, as the case may be, of any interest/ commission/ principal amounts under the Facility, the Facility may be classified as Special Mention Account (“SMA”) and/ or Non Performing Asset (“NPA”) in accordance with the guidelines issued by the RBI, from time to time.

2. The Borrower further agrees, acknowledges and confirms that immediately upon any default, the account of the Borrower may be classified as SMA as follows, subject to the guidelines issued by RBI, from time to time:

In case of the Facility is not sanctioned on revolving basis		In case of the Facility is sanctioned on revolving basis
SMA Sub-categories	Basis for classification – Principal or interest/ commission payment or any other amount wholly or partly overdue	SMA Sub-categories	Basis for classification – Outstanding balance remains continuously in excess of the sanctioned limit or drawing power, whichever is lower, for a period of:
SMA-0	Upto 30 days	-
SMA-1	More than 30 days and upto 60 days	SMA-1	More than 30 days and upto 60 days
SMA-2	More than 60 days and upto 90 days	SMA-2	More than 60 days and upto 90 days

Further, the Borrower is aware that the account of the Borrower may be classified as NPA in accordance with RBI Master Circular - Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances, as amended from time to time and other applicable guidelines issued by RBI, from time to time.

3. The Borrower irrevocably and unconditionally agrees and confirms that it shall not raise any dispute regarding the classification of the Facility/Borrower’s account as SMA and/ or NPA in accordance with the above and as per guidelines issued by RBI, from time to time.

Illustrative movement of an account to SMA category to NPA category based on delay I non-payment of dues and subsequent upgradation to Standard category at day end

Due date of payment	Payment date	Payment Covers	Age of oldest dues in day	SMA /NPA Categorization on	SMA since date / SMA Class date	NPA categorize acti	NPA Date
01.02.2022	01.02.2022	Partly paid dues of 01.02.2022	1	SMA-0	01.02.2022	NA	NA
01.02.2022	02.02.2022	Partly paid dues of 01.02.2022	2	SMA-0	01.02.2022	NA	NA
01.03.2022	Scenario 1	Dues of 01.02.2022 partly paid And 01.03.2022 is also due at EOD 01.03.2022	20	SMA-0	01.02.2022	NA	NA
	Scenario 2	Dues of 01.02.2022 fully paid, Due for 01.03.2022 not paid at EOD 01.03.2022	1	SMA-0	01.03.2022	NA	NA
	Scenario 3	No payment of full dues of 01.02.2022 and 01.03.2022 at EOD 03.03.2022	31	SMA-0	01.02.2022/ 03.03.2022	NA	NA
	Scenario 4	Dues of 01.02.2022 fully paid , Due for 01.03.2022 partly paid at EOD 1.03.2022	1	SMA-0	01.03.2022	NA	NA
01.04.2022	Scenario 1	No payment of dues of 01.02.2022, 01.03.2022 an amount due on 01.4.2022 at EOD 1.04.2022	60	SMA-1	1.02.2022/ 3.03.2022	NA	NA
	Scenario 2	No payment of dues of 01.02.2022 till 01.04.2022 at EOD 02.04.2022	61	SMA-2	01.02.2022/ 02.04.2022	NA	NA
01.05.2022	Scenario 1	No payment of dues of 01.02.2022 till 01.05.22 at EOD 01.05.2022	90	SMA-2	01.02.2022/02.04.2022	NA	NA
	Scenario 2	No payment of dues of 01.02.2022 till 01.05.22 at EOD 02.05.2022	91	NPA	NA	NPA	02.05.2022
01.06.2022	01.06.2022	Fully Paid dues of 01.02.2022 at EOD 01.06.2022	93	NPA	NA	NPA	02.05.2022
01.07.2022	01.07.2022	Paid entire dues of 1.03.2022 & 01.04.2022 at EOD 01.07.2022	62	NPA	NA	NPA	02.05.2022
01.08.2022	01.08.2022	Paid entire dues of 1.05.2022 & 01.06.2022 at EOD 01.08.2022	32	NPA	NA	NPA	02.05.2022
01.09.2022	01.09.2022	Paid entire dues of 01.07.2022 & 01.08.2022 at EOD 1.09.2022	1	NPA	NA	NPA	02.05.2022
01.10.2022	01.10.2022	Paid entire dues of 01.09.2022 & 01.10.2022	0	Standard Account with no overdue	NA	NPA	STD from 01.10.2022

4. The Borrower understands that the aforesaid few examples are illustrative and not exhaustive in nature covering common scenarios, and that, the IRACP norms and clarifications provided by RBI on the subjects referred above will prevail.