THIS LENDER'S AGREEMENT (“Agreement”) is made at the place and on the date as stated in application form duly filled and signed by the Borrower, BY and BETWEEN
The Person(s), as described in Schedule 1 (hereinafter referred to as the “Participant” which expression shall be deemed to mean and include his / her / their respective heirs, administrators, executors, legal representatives of the First Part; AND NDX P2P Private Limited, a company incorporated under the provisions of the Companies Act, 2013, having corporate identity number U67200MH2018PTC306270 and its registered office at 102, Lachiram Plaza, C Wing, GAKV Marg, Goregaon East, Mumbai – 400 063 (hereinafter referred to as the ‘LiquiLoans’, which expression shall, unless it be repugnant to the subject or context thereof, shall mean and include its successors, transferees and assigns), of the Second Part. Each is hereinafter referred to individually as ‘Party’ or collectively as ‘Parties’.
NOW, THEREFORE, THE PARTIES HEREBY AGREE AS UNDER:
(a) The Participant intends to utilise his surplus funds to lend to persons in need, so as to earn interest thereon and will therefore utilise the platform provided by LiquiLoans, which facilitates interactions between the persons interested in lending and those interested in borrowing, so that the lenders can, basis the information furnished by the borrowers, decide on the persons to whom they can lend and the terms and conditions of such lending.
(b) The LiquiLoans shall provide the Participant with access to database of persons who intend to borrow certain sums of monies through the LiquiLoans platform. LiquiLoans will in no manner collect deposits from the Participant or any person who would like to earn interest on their money by lending. The LiquiLoans will only provide support to the Participant in verifying the details of the borrower, on best effort basis, basis the details furnished by the borrower(s).
(c) LiquiLoans may undertake credit assessment of the borrower(s) to understand the risk of default. For this purpose, financial, social and personal background check may be undertaken, basis certain documents submitted by the borrowers, such as income and bank statements. Various factors that may be considered for credit evaluation mechanism are:
(i) Stability: is understood basis the nature of borrower’s residence i.e. rented/self-owned, length of stay at the same address, length of employment in the same organization, etc. (ii) Ability: is evaluated by studying the borrower’s income & expenditure behaviour. For example, a healthy percentage of income saved reflects better ability of borrower to repay his/her financial liabilities. (iii) Intention: is understood by analyzing the past repayment behaviour of the borrower towards his financial liabilities. Delayed repayments in past financial transactions
reduce the chances of loan approval. For this purpose, bureau reports are procured (with prior consent from the borrowers) and evaluated. (iv) Bank statement: helps to judge banking habits of a borrower. Several parameters like average monthly balance, cheque bounce and unaccounted transactions, if any, are taken into consideration for assessment of a borrower’s credit worth. (v) Verification: Telephonic verification may be undertaken to get first-hand information from the borrowers, physical verification at both the residence & office address may also be undertaken. All documents submitted by the borrowers may also be verified for forgery.
(d) The Participant shall chose the persons to whom he intends to lend the monies decided by him, on the commercial terms and conditions as applicable to each such person(s), which shall be made available by the LiquiLoans to the Participant.
(e) To ensure secure, fast and smooth transfer of funds with every transaction on the platform, LiquiLoans has opened a “Lenders’ Escrow Account” under the trusteeship of IDBI trustee services ltd. Participant will need to transfer the amount he wishes to lend through LiquiLoans, into such Lenders’ Escrow Account.
(f) Once the loan transaction of the Participant with the particular borrower(s) is complete, LiquiLoans will transfer the relevant amount from the Lenders’ Escrow Account directly to the borrower’s bank account. The salient features of such Escrow Account are:
(i) LiquiLoans does not have any right to intervene or option to withdraw monies from such
account for its own use. (ii) The Participant shall give instructions, through LiquiLoans, to the trustee, who in turn will
forward such instructions to the escrow bank for execution. (iii) LiquiLoans cannot do any transactions, only view the transactions done through the
Lenders’ Escrow Account. (iv) The trustee will independently audit the operations of the Lenders’ Escrow Account on a
(g) To ensure secure, fast and smooth transfer of funds with every transaction on the platform, LiquiLoans has opened a “Borrowers’ Escrow Account” under the trusteeship of IDBI trustee services ltd. The Borrowers will need to transfer the amounts due and payable by them to the lenders, into such Borrowers’ Escrow Account. After the loan is disbursed, the borrower will pay the EMIs on or before the stipulated date of every month. If a borrower fails to pay an EMI within a stipulated time, a penalty is levied on the borrower which is payable to the Participant. The first EMI is payable by cheque. Thereafter, repayments– EMI and pre-closure – are made through an online, automated procedure. Every month the entire EMI amount is collected directly (through auto-debit) from the borrower’s account to the Borrowers’ Escrow account, from where it gets reflected in respective lenders virtual account.
(h) The Participant can anytime withdraw monies due to him and lying to the credit of the Borrowers’ Escrow Account, by simply writing to LiquiLoans and the monies will be transferred to his bank account within 3 working days.
(i) Once the Participant has pre-funded the Lender’s Escrow account with the amount he wishes to lend, he can start lending by sending proposals to borrowers. Loan listings are made available to the Participant along with relevant financial, credit and personal details of each borrower. The Participant can use this information to make an informed choice and send a proposal to fund the borrower. Offers are accepted on first come first served basis. The Participant can fund up to INR 50,000 of a borrower’s total loan requirement.
(j) Loan Disbursal: Loan disbursal to the Borrowers shall begin only after the loan agreement has been signed by them and the borrower has provided the required number of post-dated cheques towards their payment obligations and repayment of the first EMI.
(k) Loan Agreement: LiquiLoans facilitates the signing of legally-binding agreement between the borrower and the lenders. To facilitate smooth signing of such agreement, the Participant shall grant a power of attorney to the LiquiLoans to execute such agreement and other documents on behalf of the Participant. The LiquiLoans will execute such agreement and other documents on behalf of the Participant, with the Borrower and then sent through email, if requested, for their records.
(l) Collection Activity: P2P lending is a market-linked asset class, open to the risk of default. We urge all lenders to go through default rates and understand the risks involved before investing. At LiquiLoans, we try to keep default-rate to a minimum by taking numerous steps to mitigate risk. Every borrower registered with us is identity-checked, credit-checked and risk-assessed by our experienced team to ensure that only highly-curated are listed on the platform. The loan is disbursed only after the borrower signs the legally-bound loan agreement. Auto reminders (sms and call) are sent to all borrowers 3-5 days before the EMI due date. However, though we do our best to manage the risk at every step, defaults can happen. In case of default, LiquiLoans has a 4-step soft recovery process to collect pending payments on behalf of lenders.-
(m) Collection and Recovery Process is on best-effort basis which may not result in recovery and hence the risk of loss of both principal and interest exists. LiquiLoans is only an intermediary providing an online platform to connect borrowers and lenders and as such is not liable in any manner for any default of the borrowers. We urge you to read all terms and conditions thoroughly and understand all the risks involved before lending.
represents, warrants and covenants as follows:
(i) It has read this Agreement and the applicable terms and conditions, and have fully and
completely understood the same. (ii) It acknowledges that the LiquiLoans is not engaged in either grant of loan or borrowing
any money from any persons in relation to the services . (iii) It acknowledges that neither LiquiLoans nor any of its subsidiary or affiliate has any interest in either grant of loan or in borrowing money from a person through the P2P platform. (iv) It will not borrow money to lend, either from through LiquiLoans or otherwise. (v) It will honor your commitments and not renege on your loan offers after listing it with us. (vi) It will not pester borrowers during the course of or after the completion of the deal. This would include not communicating directly for loan recovery, not pestering about additional details in attempt to personally verify borrower’s credentials etc. (vii) In case of default in repayment of loan by any Borrower(s), it will deal with recoveries through approved legal advisors. LiquiLoans has a fair mechanism adhering to legal procedures as per the law of the land. However, LiquiLoans is just the facilitator and not an intermediary or holder of the funds, and hence is not responsible for the amounts transacted in the course of a deal. (viii) It is responsible for all and any decision that it has taken to lend through LiquiLoans and
LiquiLoans does not take any responsibility for that. (ix) It acknowledges that the LiquiLoans in no manner warrants or guarantees the performance of a service provider that is providing services with respect to the services being offered by LiquiLoans. (x) It acknowledges that LiquiLoans in no manner warrants and guarantees that the borrower of loan has provided all the required information which is true and correct including its address, phone numbers etc. It acknowledges that it is its’ responsibility to
verify the information about the borrower and LiquiLoans is in no manner liable if the information provided by the borrower is untrue or incorrect. (xi) It will adhere to all laws relating to income tax and pay its taxes on income so generated (xii) It acknowledges that LiquiLoans is not at all responsible for any claim or damage in case either the person who has agreed to grant loan has not granted loan or the person who has agreed to repay the loan do not repay the loan or misrepresents about its financial status or commits a fraud or a cheating or any other such illegal act. (xiii) It acknowledges that it has taken expert advice from a legal consultant or any other
expert so required about its status to lend using the services provided by LiquiLoans. (xiv) LiquiLoans holds the complete right to de-activate the Participant on its own accord if the Participant is suspected or found to be from competition engaging or trying to engage in any malicious activity. (xv) The LiquiLoans services are not available to persons under the age of 18 or of unsound mind or who are declared insolvent or to any persons suspended or removed from the system by LiquiLoans for any reason. The Participant represents that it is of legal age to form a binding contract and is not a person barred from receiving services or goods under the laws as applicable in India. Further, it is more than 18 years of age. (xvi) The Participant is prohibited from selling, trading, or otherwise transferring their LiquiLoans account to another party, without the express written consent of LiquiLoans. If you do not qualify, you may not use the services provided by LiquiLoans. (xvii) It agrees to provide true, accurate, current and complete information about itself as required to be submitted from time to time. If you provide any information that is untrue, inaccurate, not current or incomplete (or becomes untrue, inaccurate, not current or incomplete), or LiquiLoans has reasonable grounds to suspect that such information is untrue, inaccurate, not current or incomplete, LiquiLoans has the right to suspend or terminate your account and refuse any and all current or future use of the services (or any portion thereof). As LiquiLoans enables borrowers to find lenders and lenders to find borrowers, it considers provision of wrong information willingly an act that would constitute misrepresentation, fraud and cheating. LiquiLoans reserves the right to refuse services, terminate accounts, or remove or edit content in its sole discretion. In the event, LiquiLoans finds that the information shared by you is incorrect or that the you are in breach of terms or conditions of the website or you are in default of the your agreements with LiquiLoans then in such case LiquiLoans may add your name and details in the list of persons who are blacklisted from lending through LiquiLoans. (xviii) By providing information or undertaking communications through LiquiLoans, you shall be deemed to have granted to LiquiLoans a royalty-free, perpetual, irrevocable, non- exclusive license to use, reproduce, modify, publish, edit, translate, distribute, perform, and display the communication alone or as part of other works in any form, media, or technology whether now known or hereafter developed, and to sublicense such rights through multiple tiers of sub-licensees. (xix) It acknowledges that it is aware of all its rights, duties and applicability of various laws including not limited to Money Lending Act, Income Tax Act, or any other statute, or law, which may govern the lending and borrowing of monies within your State of residence or from where you ordinarily conduct your business.
signing this Agreement are fully authorised in this regard as per prevailing procedures, and the Parties have completed all required corporate actions necessary to execute this Agreement.
exclusive right to initiate proceedings against the defaulter borrower. LiquiLoans is not obliged to provide any information and support to the Participant. However, the Participant shall not make any claim against LiquiLoans and shall conduct an independent due diligence of the borrower before lending to him. This limitation of liability section shall prevail over any conflicting or inconsistent provision contained in any of the documents comprising this Agreement and the terms and conditions.
UNDER NO CIRCUMSTANCES SHALL LIQUILOANS, ITS SUBSIDIARIES, EMPLOYEES, OFFICERS, AFFILIATES, DIRECTORS, AGENTS, SUPPLIERS, SHAREHOLDERS, NON EXECUTIVE DIRECTORS OR ITS LICENSORS INVOLVED IN CREATING, PRODUCING, TRANSMITTING OR DISTRIBUTING THE SERVICES, GRANTING OR RECEIVING LOAN FROM A PERSON ASSOCIATED WITH THE LIQUILOANS BE LIABLE FOR ANY DIRECT, INDIRECT, PUNITIVE, INCIDENTAL, SPECIAL, OR CONSEQUENTIAL DAMAGES THAT RESULT FROM EITHER MISREPRESENTATION, FRAUD, COERCION, BREACH OF TRUST, MISAPPROPRIATION, CHEATING OR FOR ANY OTHER SUCH REASON OF ITS END USERS OR OF THIRD PARTIES INCLUDING BUT NOT LIMITED TO LOSS OF PROFITS AND LOSS OF GOODWILL OR LOSS OF INTEREST.
REPRESENTATION OR STATEMENT OF YOUR FINANCIAL STATUS OR YOUR PROOF OF RESIDENCE, YOU REPRESENT AND WARRANT THAT YOU HAVE THE LAWFUL RIGHT TO REPRODUCE AND DISTRIBUTE SUCH CONTENT AND THAT THE CONTENT COMPLIES WITH ALL LAWS AND IS TRUE AND AUTHENTIC AND IS NOT IN ANY EVENT PROVIDED TO DEFRAUD OTHER USERS OR CREATE A FALSE IMPRESSION IN THEIR MINDS THAT YOU HAVE A SOUND FINANCIAL STATUS OR ARE REASONABLY COMMITTED TO DELIVER THE COMMITMENTS ON TIME. YOU ALSO REPRESENT THAT YOU HAVE NOT EVER BEEN ACCUSED TO ANY FRAUD, MISREPRESENTATION OR DEFAULT IN YOUR COMMITMENTS, CLAIMS OR MONIES TO ANY THIRD PARTY WHETHER A FINANCIAL INSTITUTION OR NOT. YOU ALSO REPRESENT THAT THERE ARE NO OUTSTANDING DISPUTES IN CONNECTION WITH YOUR MORAL TURPITUDE OR FINANCIAL STATUS. YOU HEREBY REPRESENT AND WARRANT THAT YOU ARE LEGALLY COMPETENT TO EXECUTE, BE BOUND BY AND ADHERE TO TERMS AND CONDITIONS OF THIS AGREEMENT AND THE TERMS AND CONDITIONS NOTIFIED BY LIQUILOANS. YOUR USE OF THE SERVICES IS SOLELY AT YOUR RISK. YOU AGREE THAT LIQUILOANS SHALL HAVE NO RESPONSIBILITY FOR ANY DAMAGES SUFFERED BY YOU IN CONNECTION WITH THE SERVICES OR ANY CONTENT CONTAINED THEREIN OR ANY DAMAGE SUFFERED IN THE EVENT OF DEFAULT OR MISREPRESENTATION BY ANY OTHER USER OF THE SERVICES.
through pre-paid post addressed to the concerned Party; when sent by facsimile upon transmission; and for electronic mail, upon the obtaining of a valid return receipt from the recipient.
(a) Clause headings are inserted for convenience of reference only and shall not be deemed
to affect the interpretation or construction of this agreement or of any clause.
(b) The Agreement cannot be assigned (nor any duties hereunder be delegated) by you without the express written consent of LiquiLoans. Provided that LiquiLoans may assign this Agreement to any parent, subsidiary or affiliated entity, or any entity which acquires all or substantially all of its assets or business and shall provide you with ten (10) days written notice of such assignment. Any purported assignment not permitted hereunder shall be void.
(c) Notwithstanding the provisions contained herein, no liability shall attach to any Party including third parties, in the event of its failure to observe the terms hereof, if such failure is caused by reasons of, or on account of, or in consequence of any act of God or act of Government, plague, famine, epidemic, fire, storm, floods, war, mutiny, riot, civil commotion, disturbances, power supply disruption, union action, union strikes, extraordinary failure of equipment, port congestion, Government statute or imposition, road blockage accident of vehicle carrying the materials, transporters’ strike or any other cause whatsoever beyond the reasonable control of the concerned Party, which would make performance commercially impracticable, whether or not the contingency is of the same class as those listed above.
(d) No failure or delay by the Parties in exercising any right or remedy provided by Applicable Law under or pursuant to this Agreement shall impair such right or remedy or operate or be construed as a waiver or variation of it or preclude its exercise at any subsequent time and no single or partial exercise of any such right or remedy shall preclude any other or further exercise of it or the exercise of such or any other right or remedy.
(e) If any provision or provisions of this Agreement shall be held unenforceable for any reason, then such provision shall be modified to reflect the parties’ intention. All remaining provisions of this Agreement shall remain in full force and effect for the duration of this Agreement.
(f) This Agreement, read with the terms and conditions, as notified by LiquiLoans from time to time, constitutes the entire agreement between the Parties on the subject matter hereof and supersedes all previous negotiations, commitments, writings and representations, written or oral thereto.
(g) LiquiLoans reserves the right at all times to discontinue or modify any of the terms and conditions of its services including this Agreement, as may be deemed necessary or desirable, without prior notification or consent from you. Such changes may include, among other things, the adding of certain fees or charges. We suggest to you, therefore, that you re-read the notice containing our terms and conditions from time to time in order.