Loan Bond With Sureties And Lower Rate Of Interest In Case Punctuality In Payment Legal Draft Template

This

Deed is executed on thisday ofat between :1.

Mr.

VK S/o Mr. GD r/o , hereinafter called the debtor on the first part.2.

Mr.

PC, s/o RP r/o ., and Mr. DC s/o RA r/o ., hereinafter jointly

called the sureties on the second part, and3.

Mr.

KB, s/o RB, r/o , hereinafter called the creditor on the third part.Whereas

the creditor has agreed to advance a loan of Rs.5,00,000.00 to the debtor, which

is to be repayable in four years with interest at the rate of 18% per annum,

provided two persons stand as surety of the debtor.And

whereas sureties above named are ready to stand as sureties of the debtor.Now this

Deed Witnesses as Under:1.

That

in pursuance of the said agreement the creditor has advanced a sum of

Rs.5,00,000.00 (Rupees five lacs only), the receipt of which has been

acknowledged by the debtor.2.

The

debtor shall repay the loan in five years in half yearly installments of

Rs.50,000/- with interest at the rate of 18% per annum.3.

That

in case the debtor repays the installment of loan before at least 15 days of

the due date, the interest shall be paid at the rate of 12% per annum.4.

That

in case of failure on the part of the debtor or repay the loan andinterest

or its part thereof, the sureties shall be liable to repay such unpaid amount

of loan and interest, for which sureties are agreed.We

the above noted parties have signed this deed on the date and place mentioned

above, after fully understanding the contents of this deed in the presence of

the following witnesses.1.

Name. Signature ..Address

Debtor2.

Name SignatureAddressSurety3.

Name. Signature ..Address

Creditor