A business loan agreement is a legally binding document that outlines the terms and conditions of a loan between Bajaj Finance and the customer. A business loan agreement typically includes information like the loan amount, repayment term, due dates, and other clauses that protect the rights and obligations of both parties.
A business loan agreement is different from a personal loan agreement, as it is specifically designed for business purposes and may have specific provisions.
Fundamentals of business loan agreement
A business loan agreement should be clear, concise, and comprehensive, covering all the essential aspects of the loan transaction. Some of the fundamental elements of a business loan agreement are:
- Loan amount: This is the principal amount that has been approved to the borrower. The loan amount may be disbursed in one lump sum or in instalments, depending on the nature and purpose of the loan.
- Repayment term: This is the duration of time that the borrower has to repay the loan amount, along with interest and other charges. The repayment term may be fixed or variable, depending on the type of loan.
- Interest rate: This is the percentage of the loan amount that the borrower has to pay as interest.
- Fees and charges: These are the additional costs that the borrower has to pay for processing, servicing, or administering the loan.
Default and consequences
These are the events or situations that constitute a breach of the loan agreement by the borrower. Default may include failure to make timely payments, violation of covenants, insolvency, bankruptcy, etc. Consequences may include acceleration of repayment, foreclosure of collateral, etc.
Governing law and dispute resolution
These are the rules and procedures that apply to the interpretation and enforcement of the loan agreement. Governing law refers to the jurisdiction whose laws will govern the loan agreement. Dispute resolution refers to the method of resolving any conflicts or disputes arising from the loan agreement. This may include arbitration, mediation, litigation, etc.
How to get your business loan agreement?
If you have opted for a business loan from Bajaj Finance, you will receive the agreement once your loan amount is sanctioned. You can also download your loan agreement by visiting our customer portal – My Account.
- Click on the ‘sign-in’ button on this page to visit My Account – Bajaj Finance customer portal
- Enter your registered mobile number and the OTP to sign in
- Verify your details by entering your date of birth
- Select the loan account for which you want to download the loan agreement
- Click on ‘Loan agreement’ to download it
