This Loan Agreement ("Agreement") is made and entered into by and between:
Platform Operator:
BEAUTIFUL SECURITIES LIMITED
CIN: U67120MH1994PLC076468
Registered Office: 101-103, Mittal Court, A Wing, 10th Floor, Nariman Point
Email: team@beautifulsecurities.com
Loan Provider (NBFC):
DEALING BENEFICIAL FINANCIAL SERVICES PVT. LTD.
CIN: U65990GJ2012PTC070581
A Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India (RBI)
Registered Office: 206, Second Floor, Business Bay, Street No. 6 Oyal Park, Kalawad Road, Rajkot Gujarat 360005
Borrower:
The user of the BS Loan application ("Borrower")
Loan Amount and Terms
Loan Amount: ₹1,000 to ₹70,000
Interest Rate: 1.5% per month
Loan Term: 270 days (9 months)
No Service Fees
Loan Amount
The Lender agrees to provide a loan to the Borrower, within the range of ₹1,000 to ₹70,000 ("Loan Amount").
Interest Rate
The loan will carry an interest rate of 1.5% per month on the outstanding principal amount.
Loan Term
The loan will be provided for a term of 270 days (approximately 9 months), starting from the disbursement date.
Service Fee
There will be no service charge for this loan.
Example of Loan Calculation
Let’s take an example for a loan of ₹70,000:
- Loan Amount: ₹70,000
- Interest Rate: 1.5% per month
- Loan Term: 270 days (9 months)
Interest Calculation:
Monthly interest: ₹70,000 × 1.5% = ₹1,050
Total interest for 9 months = ₹1,050 × 9 = ₹9,450
Total repayment amount = ₹70,000 + ₹9,450 = ₹79,450
Monthly Repayment:
₹79,450 ÷ 9 months ≈ ₹8,838
Late Payment Fees
If the Borrower fails to repay on time, a late fee of 1% per day will be applied to the outstanding amount.
For example, if the Borrower is 1 day late on a ₹70,000 loan:
Late fee: 1% × ₹70,000 = ₹700
Total due after 1 day late: ₹79,450 + ₹700 = ₹80,150
APR (Annual Percentage Rate)
The APR reflects the annual cost of the loan, considering the interest rate and other fees:
APR = 1.5% × 12 = 18%
IRR (Internal Rate of Return)
The IRR for this loan, based on the given terms, is approximately 23.7%, which reflects the true annual rate of return for the Lender, considering the compounding of monthly interest.
Disbursement and Repayment
Loan Disbursement
Upon approval of the loan, the Loan Amount will be disbursed directly to the Borrower's bank account provided during the application process.
Repayment
The Borrower agrees to repay the Loan Amount in equal monthly installments, starting from the date of disbursement. The Borrower must make the payments by the due date, as specified in the repayment schedule provided after loan approval.
Late Payment
If the Borrower fails to make the repayment by the due date, a late payment fee of 1% per day of the outstanding loan amount will be charged.
Loan Usage
Purpose of Loan
The loan provided is to be used for personal expenses or any lawful purpose. The Borrower must use the loan amount in accordance with the stated purpose and not for any illegal activities.
Monitoring of Loan Usage
The Lender reserves the right to request documentation regarding the usage of the Loan Amount, at any time during the Loan term.
Default and Late Payments
Late Payment Fees
If the Borrower fails to make the repayment by the due date, a late payment fee of 1% per day will be charged on the outstanding balance.
Default Conditions
An event of default will occur if the Borrower:
- a) Fails to repay the Loan Amount in full by the due date.
- b) Provides false or misleading information during the loan application process.
- c) Fails to respond to requests for repayment or extension of the loan.
- d) Becomes insolvent or files for bankruptcy.
Action on Default
In the event of default, the Lender may take any or all of the following actions:
- a) Demand immediate repayment of the entire outstanding balance.
- b) Initiate legal proceedings to recover the outstanding loan amount.
- c) Charge additional penalties and interest as allowed by applicable laws.
Warranties and Representations
Borrower’s Warranties
The Borrower warrants and represents that:
- a) All information provided during the loan application is accurate and truthful.
- b) The Borrower has the legal capacity to enter into this Agreement and repay the loan.
- c) The Borrower will repay the loan as per the agreed-upon terms.
Lender’s Warranties
The Lender warrants and represents that:
- a) The loan is provided in accordance with the applicable laws and regulations of India.
- b) The loan is being provided by an RBI-registered NBFC (DEALING BENEFICIAL FINANCIAL SERVICES PVT. LTD.).
Governing Law and Dispute Resolution
Governing Law
This Agreement shall be governed by and construed in accordance with the laws of India.
Miscellaneous Provisions
Amendments
This Agreement may only be amended in writing and signed by both parties.
Severability
If any part of this Agreement is found to be invalid or unenforceable by a court of law, the rest of the Agreement shall remain in effect.
Force Majeure
Neither party shall be liable for any delay or failure in performance due to circumstances beyond their control, including but not limited to natural disasters, acts of war, or government restrictions.
Assignment
The Lender may assign its rights and obligations under this Agreement to any third party, without the prior consent of the Borrower.