When a person or entity (the “lender”) loans money to another person or entity (the “borrower”), the loan is typically formalised with a written promissory note. In many instances the lender will ask for additional assurance in the form of collateral (such as property) if the borrower fails to repay the loan. The Secured Promissory Note contains three repayment options (on-demand, monthly instalments and scheduled instalments) and a Security Agreement which sets out the collateral for the loan. Having a written Secured Promissory Note and Security Agreement will prove invaluable if the borrower defaults on repaying the loan or in the event of litigation.

Among others, this form contains the following provisions:

• Parties: This provision sets out the names and addresses of the borrower and the lender;
• Amount and Date:This provision sets out the specific amount of money borrowed and the date the note was signed;
• Repayment: This provision sets out the borrower’s repayment options;
• Default: This provision contains the penalties in the event of default.

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This lawyer-prepared packet includes:

1. General Information
2. Instructions and Checklist
3. Secured Promissory Note and Security Agreement for use in India

Law Compliance: This form complies with the laws of the states and territories of India